Southeast Asia is a growing destination for U.S. companiesshifting business out of China, according to a survey by theAmerican Chamber of Commerce in Singapore, Reuters reports. Thesurvey of 356 senior executives at companies in the region shows21% now plan to move some operations to Southeast Asia in the nexttwo years to reduce their reliance on China, up from 15% in lastyear's survey.

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

Rising labor costs in China may be the reason companies areconsidering moving their operations elsewhere. According to thesurvey, 92% of respondents said they felt positively aboutinvesting opportunities in the ASEAN region, which includesIndonesia, Thailand, Malaysia, Singapore, Vietnam, the Philippines,Myanmar, Cambodia, Laos and Brunei.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.