Southeast Asia Rising in Popularity (Reuters)

Survey shows U.S. companies look to move business from China to Southeast Asia.

Southeast Asia is a growing destination for U.S. companies shifting business out of China, according to a survey by the American Chamber of Commerce in Singapore, Reuters reports. The survey of 356 senior executives at companies in the region shows 21% now plan to move some operations to Southeast Asia in the next two years to reduce their reliance on China, up from 15% in last year’s survey.

The top destinations for companies were Malaysia and the Philippines, with 27% of executives citing each country. The Philippines has become much more popular since last year’s survey, when it was the top choice of only15% of respondents. Vietnam, last year’s top choice, moved down to 24% this year.

Rising labor costs in China may be the reason companies are considering moving their operations elsewhere. According to the survey, 92% of respondents said they felt positively about investing opportunities in the ASEAN region, which includes Indonesia, Thailand, Malaysia, Singapore, Vietnam, the Philippines, Myanmar, Cambodia, Laos and Brunei.

For the full story


Advertisement. Closing in 15 seconds.