China still top destination for business expansion by Asian firms

China-city-night

China remains the top destination for business expansion by Asian enterprises. Malaysia took second spot while Singapore and Vietnam are in joint third position as destinations for regional companies to expand. These are findings from the UOB Asian Enterprise Survey 2014 released on Monday (Sep 15).

The survey was conducted among 1,024 business leaders across six markets in Asia. It was to find out what Asian enterprises are doing to fuel their next stage of growth, what their business expansion strategies are, and which markets within Asia are most favoured.

The results show that when it comes to expansion in Asia, companies prefer markets that are home to a large middle-class consumer base or those that offer lower cost manufacturing.

Among the factors driving Asian enterprises to expand abroad is rising labour costs – which is forcing some companies to expand into countries with lower costs to sustain profitability.

Other factors that may influence Asian enterprises to expand regionally include acting on advice of personal and business contacts. These contacts could be those with a similar language or culture, or trade associations and financial advisers.

Meanwhile for Chinese enterprises, many prefer to expand in their domestic market as they are fully aware of the growth potential. The survey showed that more than 40 per cent of Chinese enterprises are looking to invest and expand in Southwestern and Central China.

 

 

 

Source : Channel News Asia | September 15, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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