Which countries are moving out of China?

But recent news suggests manufacturers from the more heavily invested nations – like, Taiwan, South Korea, and Japan – are leaving China in droves, and, although authorities rarely publicly acknowledge an exodus, they are striving to hold on to these foreign direct investments.

Why are supply chains moving out of China?

Manufacturing could return to China, as Covid cases spike in India and Vietnam. Previously, the U.S.-China trade war caused companies to move their supply chains out of China. As a result, countries like Vietnam and India benefited as companies set up shop there.

Why are Chinese companies moving into Vietnam?

However, he has also seen Chinese companies moving into Vietnam due to its very stable political environment. Indeed, Malaysia, Indonesia, Thailand, and Vietnam all have their own benefits and some similarities with India.

Which country will be the next low-cost manufacturing hub in Asia?

Deloitte predicts that the economies of Malaysia, India, Thailand, Indonesia, and Vietnam, the “Mighty Five” or MITI-V, will inherit China’s crown for such products. The consensus among industry and regional experts interviewed for this article is that India in particular will be the next top hub for low-cost manufacturing.

Why is low-cost manufacturing moving out of China?

As Chinese manufacturing becomes more high value, and workers’ wages are rising, low-cost manufacturing is moving out. “This has been happening for a number of years – it’s nothing new. Especially shoe-making [and] apparel are already moving out to Vietnam, Indonesia, and even Bangladesh.

What happened to Chinese manufacturing in Southeast Asia?

Conveniently, as Chinese manufacturing began its decline, other Southeast Asian countries nearby started quickly gearing up to take over some of Chinese business. Individual countries started eating up niche specialities. Vietnam, for example, made massive efforts to grab everyday apparel manufacturing.