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 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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