Latest News:  

English>>Business

ASEAN unlikely to replace China as world's top manufacturer

(Xinhua)

13:25, January 22, 2013

HANOI, Jan. 21 (Xinhua) -- In the past decade, foreign investments have gradually shifted from China to India and the members of the Association of the Southeast Asian Nations (ASEAN) but ASEAN is not likely to replace China as the world's top manufacturer, according to Nguyen Huy Hoang, Deputy Director General of the Institute for Southeast Asian Studies of the Vietnam Academy of Social Sciences.

In a recent interview with Xinhua, Hoang said there are several factors as to why the regional grouping, composed of the new emerging economies, could not replace China as world's top manufacturer.

Hoang explained that the shift of the foreign investments to ASEAN is primarily due to adjustments in China's investment policies towards service-oriented economy or intellectual economy, focusing on areas with higher added value.

In addition, foreign investors also want to take advantages of ASEAN's large population, cheap labor, robust economic growth and increasing number of the middle class--people with high consumption demand and these are the key factors to boost manufacturing and investments.

Southeast Asia is emerging as a dynamic region in economic development, attracting foreign investors and becoming a favorite destination for international manufacturers.

During the past years, ASEAN countries still adopted export- based economic development. When ASEAN's major markets, including the United States and the European countries, faced economic slowdown,the import demand from those countries declined, Hoang said.

However, ASEAN countries have adopted timely policies to deal the global economic downturn, maintaining relatively high growth from 4.7 percent in 2011 to 5.2 percent in 2012. ASEAN's growth are forecast to reach 5.3-5.5 percent in 2013, with Indonesia topping the list, followed by Vietnam, the Philippines, Laos and Myanmar.

Hoang said that in recent years, ASEAN policy-makers have always looked forward to integrating their trade, finance and related institutions,into what is dubbed a "borderless ASEAN capital market."

The overarching goal of the establishment of the ASEAN Community is to create a unified manufacturing market, where the commodity,capital and human resources can be mobilized freely among member countries, Hoang added.

However, the ASEAN market of some 600 million people is only half of that of Chinese market, thus in times of global slowdown, domestic demand in China is definitely much bigger than that of the ASEAN members combined.

Furthermore, Hoang said, China, now the world's second largest economy, is one country while the ASEAN market comprises ten countries with different institutions and policies on how to attract foreign investments.

"In the coming years, China will still remain the world's top supplier in both low-technology and high-technology products," Hoang added.

We recommend:

Online turnover surpasses 1 trillion yuan in 2012

Jack Ma to step down as Alibaba CEO

FDI sees 1st decrease in 9 years amid slowdown

China helps drive Rolls to record year

Top Ten Economic Events in 2012

CIC seeks balanced portfolio

Email|Print|Comments(Editor:厉振羽、梁军)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Fighters in combat readiness cruise

  2. WZ-10 armed helicopters in training

  3. Unforgettable moments you cannot miss in Jan.

  4. Space centers around world

  5. China’s weekly story (2013.01.09-01.19)

  6. Life in Beijing on 10,000 yuan a month

  7. Characters of 'Journey to the West'

  8. Chinese animation films getting stronger

  9. Sinopec aims to sweeten energy supply

  10. Love me, if you dare

Most Popular

Opinions

  1. Obama's second term brings new opportunities
  2. Happy Indian mentality keeps on rising
  3. Consumption cannot be only driver
  4. China to stick to own path in maritime exploration
  5. Learning the language of affection
  6. Don't buy a house before 35 years old?
  7. Anti-pollution plan gets mixed reviews
  8. Emotional abuse to child cannot be neglected
  9. US' dangerous stance
  10. What election means to Israel

What’s happening in China

This is the most real, most helpless and most motivate life expense of Beijing!


  1. Woman in sex videotape accuses official of rape
  2. Chinese authorities ban 55 TV ads
  3. Snow scenery of Yumen, China's Gansu
  4. Yellow River frozen by cold snap
  5. Database gives hope to abducted children