According to a new EIU report, Asia will focus more on opening new factories and offices in Southeast Asia and less on China in the next ten years.
At first glance, Asia may seem perfect for itself. It is the factory floor of the world, producing nearly half of the world’s manufactured goods. End markets are increasingly no longer half a world away. By 2030, Asia will be home to 66% of the global middle-class population and 59% of middle-class consumption, compared to 28% and 23%, respectively in 2009, according to the OECD.
However, statistics such as these do not always provide a clear view of conditions on the ground. There are realities that make economic integration in Asia challenging. Despite some progress at the sub-regional level with initiatives such as the Association of South-east Asian Nations (ASEAN), broader multilateral trade and investment arrangements have faced obstacles such as nationalism and disparate regulatory standards.
The business landscape in Asia will change significantly over the next decade, as companies in the region focus more on new growth opportunities in countries such as Myanmar, Vietnam and Thailand, and less on China, says a new report from the EIU.