NEW YORK (Bloomberg) - The cheap, young labour and strategic location of Myanmar, Cambodia and Laos are set to draw increasing numbers of manufacturers to South-east Asia, which will eventually displace China for the title of "world's factory."
The transformation will be part of the rise of Asean to become the "third pillar" of regional growth after China and India, ANZ Bank economists led by Glenn Maguire reckon. By 2030, more than half of 650 million people in South-east Asia will be under the age of 30, part of an emerging middle class with high rates of consumption.
"We also believe South-east Asia will take up China's mantle of the 'world's factory' over the next 10-15 years as companies move to take advantage of cheap and abundant labour in areas such as the Mekong," ANZ said.
What will likely assist this shift is the connection between low-cost labor in places like Myanmar, Cambodia and Laos, cost-effective manufacturers in Thailand, Vietnam, Indonesia and the Philippines, and sophisticated producers in Singapore and Malaysia. South-east Asian nations have committed to establish an Asean Community by 2015 where goods, services, capital and labour can move freely between the member states.
http://www.information.myanmaronlinecentre.com/china-set-to-lose-title-of-worlds-factory-to-south-east-asia-anz/
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