Asean winning Japan investments as China costs rise

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More Japanese companies are choosing the Asean region over China as an investment destination as rising costs and concerns about the environment make Asia’s biggest economy less attractive, according to the Japan External Trade Organization.

Seventy five percent of the 3,471 Japanese companies surveyed said they’re considering an expansion in the Asean nations of Singapore, Thailand, Malaysia, Indonesia, the Philippines and Vietnam, the organization known as Jetro said yesterday in a report. That’s up from 56 percent in 2011. The number of firms looking at China dropped to 57 percent last year from 68 percent two years ago, according to Jetro.

“We’ve seen a shift in the last two years and it looks to continue with more investments turning to Asean and also moving from China to Asean,” Akira Kajita, a director at Jetro’s overseas research department, said at a briefing in Tokyo yesterday.

The shift coincides with the push by Japanese Prime Minister Shinzo Abe to build stronger ties with Southeast Asian nations as a buffer against China’s growing military and economic reach. Tensions between China and Japan have peaked since 2012 as both nations assert claims to an island chain in the East China Sea.

While Japanese auto and chemical manufacturers still plan business expansions into China, firms with Chinese trading, textile and metal processing assets look to transfer these to Vietnam and other Southeast Asian nations, Jetro said.

Half of the respondents to the December survey said rising costs in China were the main reason for shrinking capacity there, with currency risks and environmental pollution among the other key factors, Jetro said.

 

 

 

 

 

Source : Thahn Nien Daily | March 1, 2014

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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