1、EMERGING ASIAMANUFACTURING INDEX2024by Dezan Shira&AssociatesNAVIGATING ASIAS INDUSTRIAL LANDSCAPE IN 2ContributorsThis edition of The Emerging Asia Manufacturing Index 2024 was produced by a team of professionals at Dezan Shira&Associates,with Melissa Cyrill as editor.Creative design of the guide w

2、as provided by Miguel Enrico Anciano and Aparajita Zadoo.2024,Dezan Shira&Associates.DisclaimerThe contents of this report are for general information only.For advice on your specific business,please contact a qualified professional advisor.Copyright 2024,Asia Briefing Ltd.No reproduction,copying or

3、 translation of materials without prior permission of the publisher is permitted.MARCO FRSTERDirector,ASEANDezan Shira&AssociatesPRITESH SAMUELHead of Business IntelligenceDezan Shira&AssociatesKYLE FREEMANPartnerDezan Shira&AssociatesKIET LEResearch AnalystDezan Shira&Associates3Table of ContentsEx

4、ecutive Summary5781514IntroductionA.Economy TierC.Business Environment TierB.Political Risk TierD.International Trade TierExample Parameter:Economic ResilienceExample Parameter:Manufacturing Capital Minimum AverageExample Parameter:Political StabilityExample Parameter:Free Trade Agreement

5、 Implementation Example Parameter:Average Company Setup Time4Table of Contents42122282619E.Tax Policy TierG.Workforce TierF.Infrastructure TierH.Innovation TierExample Parameter:Corporate Tax RatesExample Parameters:Population Size-Population Growth-Median AgeExample Parameter:Water Avail

6、abilityExample Parameter:International Freight CostExample Parameters:R&D Expenditure-Innovation/Technology AccessExample Parameters:Minimum Wage-Average WageExample Parameter:Tax IncentivesConclusionAppendix2935Table of Contents5The Emerging Asia Manufacturing Index 2024(EAMI 2024)provides comprehe

7、nsive insight into the factors influencing the outlook of the manufacturing sector in Emerging Asia.This index includes China,India,Indonesia,Malaysia,the Philippines,Thailand,and Vietnam.In addition,Bangladesh is included in this report,due to its rising profile within global manufacturing.These co

8、untries are leaders in economic growth and development in the Asia Pacific region.Projections point toward substantial GDP growth in these countries over the next two years.However,with this promising outlook comes the inherent perils of an unpredictable market.The EAMI 2024 aims to assess these ris

9、ks,measure the potential of these eight economies,and pinpoint specific factors affecting the current manufacturing landscape.This evaluation hinges on the measurement of 48 distinct parameters organized into eight fundamental core criteria.Executive Summary ALBERTO VETTORETTIManaging PartnerDezan S

10、hira&AssociatesTierFunctionWeightageAEconomyMeasures the countrys economic prospects in terms of stability,finance,and growth potential.13%BPolitical RiskMeasures political risks and transparency.6%CBusiness EnvironmentAssesses restrictions and regulatory and operational conditions.19%DInternational

11、 TradeMeasures the degree of openness towards international trade in the economy.12%ETax PolicyAssesses the tax environment as well as incentives for manufacturers.5%FInfrastructureMeasures the overall quality of infrastructure.21%GWorkforce Assesses the condition of the labor force.19%HInnovationMe

12、asures research and development prospects,and innovation support.5%6TierBDCNINIDMYPHTHVNAEconomy54217683BPolitical Risk83651742CBusiness Environment78261543DInternational Trade82753641ETax Policy64753512FInfrastructure71563824GWorkforce 47153286HInnovation81432765Final Ranking81453762Radar Visualiza

13、tion of Tier Rankings,Emerging Asia Manufacturing Index 2024Rankings by Subcategory(Tiers)of the Emerging Asia Manufacturing Ranking 2024(1 =best)Complete details and rankings for each parameter are listed in the appendix to the report.EconomyInnovationWorkforceInfrastructureTax PolicyInternational

14、TradeBusiness EnvironmentPolitical Risk987654321BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia7We are delighted to announce the first edition of the Emerging Asia Manufacturing Index(EAMI 2024).As the global economy moves through the post-pandemic phase,the manufacturing sector is s

15、tarting to recover.Despite positive signs,however,the current landscape continues to bear the aftermath of the damage caused by the pandemic.Specifically,the manufacturing sector for countries in Emerging Asia has been experiencing significant changes,presenting both enormous opportunities and chall

16、enges.As reported by the Boston Consulting Group,more than 90 percent of North American manufacturing companies have shifted their manufacturing production to a range of different regions Mexico,India,Southeast Asia,Turkey,and Morocco in the past five years.This trend is likely to continue in the me

17、dium to long term.Foreign companies outsourcing operations to reduce costs and improve market share is nothing new.What evolves over time are the countries that successfully attract capital inflows.The China+1 strategy represents a comprehensive approach involving supply chain restructuring and risk

18、 diversification strategies.However,China continues to exert its dominance as a manufacturing powerhouse,leveraging superior innovation,trade networks,infrastructure,and a skilled workforce.These are areas where both South and Southeast Asian countries need to enhance their capabilities.This dynamic

19、 underscores the nuanced interplay of factors shaping the manufacturing landscape in the region.Various challenges confront Emerging Asia countries,particularly during this phase of increased volatility,uncertainty,complexity,and ambiguity(VUCA).One such challenge is how global demand disparities ha

20、ve impacted the manufacturing sector,influencing industrial output and export orders.Nevertheless,the Emerging Markets are continuously evolving,and along with it creating significant investment opportunities.The EAMI 2024 endeavors to assist businesses in navigating this expansive yet promising mar

21、ket.In upcoming sections,we provide insights and analysis on this years index.Our aim is to provide the results and a thorough examination of the research findings.The report will examine the top performers within specific parameters and shed light on the many areas in need of improvement.This will

22、highlight the corresponding strengths and weaknesses,enabling the identification of distinct factors within each market to be accounted for in your business strategy.Introduction8A.Economy TierEconomy encompasses parameters like economic growth and inflation,and evaluates the general economic situat

23、ion focusing on stability,resilience,and growth potential.Presented below is an in-depth look into the position of the eight countries and their current ranking.A.Economy Tier,Emerging Asia Manufacturing Index 2024ParameterWeightBDCNINIDMYPHTHVNA.Economy13%542176831Economic,Financial Standing1%71542

24、3362Economic Growth2%241453643Economic Resilience3%123456724Currency Volatility2%342175865Debt1%167253416Manufacturing Growth2%371485627Inflation2%86512473A.Economy“Vietnam stands proud as a stable economy,demonstrating steadfast stability even in the face of pandemic challenges.The country remains

25、a safe investment option that can navigate through times of difficulties with strong countermeasures.Vivie Wei Country Director,VietnamDezan Shira&Associates9A.Economy TierBangladeshChinaVietnamIndiaIndonesiaMalaysiaPhilippinesThailand020406080100120Scoring Economic StabilityEconomic Resilience Para

26、meter,A.Economy Criteria,Emerging Asia Manufacturing Index 20241.Bangladesh takes first place for its economic resilience.The government of Bangladesh has proactively implemented an assertive fiscal policy,capitalizing on a low 38 percent debt-to-GDP ratio.This allowed the country to issue a substan

27、tial stimulus package,a crucial response to mitigate the economic impacts stemming from the COVID-19 pandemic.2.China follows in second place.Despite the pandemic,leading to a significant decline in GDP growth,countermeasures were immediately put into effect with Chinas strict“zero-Covid strategy.”I

28、mmediate quarantine,mass testing,and rampant lockdowns were used to restrict the overall spread of the pandemic,significantly reducing the death toll and further helping bring the economy under control.3.Vietnam,takes the third spot.Vietnams strict control of the pandemics spread significantly limit

29、ed the damage and economic fallout from the pandemic.Particularly noteworthy is the remarkable recovery of the manufacturing sector,which surged at an impressive 8 percent rate in 2022,a threefold increase from figures observed in both 2021 and 2020,further underlying its economic growth resilience.

30、Example Parameter:Economic ResilienceAs an example of a parameter within the Economy Tier,Economic Resilience for the EAMI 2024 was calculated by averaging the GDP growth rate of the eight countries over the three-year economic crisis(2020-2021-2022)caused by the COVID pandemic.The Economic Resilien

31、ce Parameter has the strongest impact on the Economy Tier as it accounts for around 23%of the Tier rating.10B.Political Risk TierThe Political Risk criteria provides a comprehensive assessment of the countrys government and regulatory stability.ParameterWeightBDCNINIDMYPHTHVNB.Political Risk6%836517

32、421Political Stability3%837416522Corruption Index2%824617533Travel Risk1%44442311B.Political Risk Tier,Emerging Asia Manufacturing Index 2024Political Stability and B.2 Corruption Index Parameter,B.Political Risk Tier,Emerging Asia Manufacturing Index 2024B.Political RiskMalaysiaVietnamChinaIndonesi

33、aThailandPhilippinesIndiaBangladesh0040403530302550504560Political StabilityCorruption Index11B.Political Risk TierExample Parameter:Political Stability The Political Stability parameter is gathered from the existing“Lowy Institute Asia Power Index”and accounts for 50%of the Political Ris

34、k Tier ranking.The political stability parameter aims to capture the current absence of violence and terrorism within the country.It measures the possibility of the government being overthrown or destabilized by violent means.1.Malaysia secured its number one rank after Anwar Ibrahim,Chairman of the

35、 Pakatan Harapan(PH)coalition,successfully became Malaysias 10th Prime Minister on November 24,2022.However,the overarching political stability in Malaysia remains precarious,primarily due to its intricate multi-ethnic system,which tends to spark conflicts in the lead-up to elections.The landscape w

36、itnessed a significant turning point in 2020 with the resignation of Prime Minister Mahathir Mohammad,and the dissolution of the Pakatan Harapan party further compounded the challenges,bringing the nation to a temporary standstill amid the pandemic.Ultimately,Malaysias King,Sultan Abdullah Sultan Ah

37、mad Shah,intervened after an inconclusive general election in late 2022 had resulted in a hung parliament.2.Vietnam follows in second place.Vietnam remains politically stable,with the government working towards providing a safe overall environment,and enforcing comprehensive laws to combat terrorism

38、 and cybersecurity.3.China takes third spot.Although China has been retaining a high level of political stability within its country,it has done so through a complex and multifaceted policy system.China is known to have a highly restrictive regulatory framework,internet censorship,strict media contr

39、ol,and suppression of any forms of political dissent that can potentially damage the government.12C.Business Environment TierThe Business Environment tier provides insights into the specific restrictions,regulatory framework,and operational conditions within an economy.The three core parameters for

40、this criterion are Manufacturing Registered Capital Minimum Average and Average Company Setup Time.Every parameter within this section undergoes meticulous research and scrutiny by our experts at Dezan Shira&Associates.This ensures the provision of the latest rankings and detailed insights into spec

41、ific facets of each parameter.ParameterWeightBDCNINIDMYPHTHVNC.Business Environment19%782615431Business Environment Rating3%835617242Manufacturing Capital Minimum Average3%271856343Average Company Setup Time4%263214254Intellectual Property Protection2%723416565Industries Restricted to FDI3%173526846

42、Ease of Hiring Foreign Staff4%42321121C.Business Environment Tier,Emerging Asia Manufacturing Index 2024C.Business Environment13C.Business Environment Tier1.India stands out with the lowest required capital to set up a company.While there is no stipulated minimum capital requirement in India,our exp

43、erience indicates that companies have successfully undergone incorporation with as little as US$1,000.This flexibility underscores the accommodating nature of Indias regulatory environment,allowing for a streamlined entry for businesses with varying capital capacities.2.Bangladesh follows India,comi

44、ng in the second position.Bangladesh does not enforce a minimum capital requirement;however,companies seeking approval from the Bangladesh Investment Development Authority(BIDA)must maintain a minimum paid-up capital of US$50,000.Typically,sectors that involve the import of capital machinery and com

45、panies that need work permits for expatriate employees require BIDA approval.IndonesiaChinaPhilippinesMalaysiaVietnamThailandBangladeshIndia0100,000200,000300,000400,000500,000600,000700,000Manufacturing Registered Capital Minimum Average Parameter,C.Business Environment Tier,Emerging Asia Manufactu

46、ring Index 2024Example Parameter:Manufacturing Capital Minimum AverageManufacturing Capital Minimum Average provides insight into the minimum registered capital required to set up a wholly foreign-owned manufacturing entity in each of the eight countries.Sources for these outcomes diverge from what

47、is stipulated in legislation or advertised to attract foreign investors.The objective is to provide a figure that realistically aligns with the approval criteria of the respective authorities,based on the experience of various professional service firms across the region.14C.Business Environment Tie

48、rExample Parameter:Average Company Setup TimeThe Average Company Setup Time parameter refers to the duration needed to finalize the incorporation of a foreign-owned manufacturing entity in each country,encompassing the pre-to post-licensing processes(excluding the additional application for special

49、licenses/permits for restricted industries).Professional service providers in each country contributed to this parameter by providing insights into their practical experiences with corporate setups.It is crucial to note that this parameter operates under the assumption of ideal conditions,where all

50、necessary paperwork is submitted without error,on time,and complete.1.Malaysia holds the highest position for this parameter.The incorporation of a company can typically be achieved within one week,provided all documents are submitted on time.In addition,the process of opening a bank account is esti

51、mated to take around two weeks.2.Thailand,Indonesia,and Bangladesh all on average hold the same setup time,taking around four weeks to fully establish a company.3.Vietnam stands in sixth place with the process taking around eight to 12 weeks.For clients registering uncomplicated and unconditional bu

52、siness lines,the estimated processing time is around eight weeks.Conversely,conditional business lines or those not listed in Vietnams WTO Commitments on Services may require approximately 12 weeks or potentially more.However,there are cases where the problem might extend to a year or more due to se

53、nsitivity around the particular business line.4.China comes in last place with the business setup process taking from three to six months.The challenges faced here mirror those encountered in Vietnam,but the business environment in China is even more stringent.“Systemically closer to Singapore than

54、any other country in this index,Malaysia provides an evident safe business environment through a comprehensive structured legal system,and increased transparency through digitalization.Marco Frster Director,ASEANDezan Shira&Associates15D.International Trade TierD.International TradeParameterWeightBD

55、CNINIDMYPHTHVND.International Trade12%827536411Free Trade Integration4%423222212Customs Facilities2%827516343Trade Balance1%614125334Trade Openness1%875624315Tariffs2%847362516Domestic Suppliers2%81243756D.International Trade Tier,Emerging Asia Manufacturing Index 2024The International Trade Tier pr

56、ovides insight into the degree of openness for international trade in each economy.This section provides a comprehensive look into the overall trade flow of each country,the restrictiveness of trade barriers,and an estimate of domestic suppliers for key industries in each country.Example Parameter:F

57、ree Trade Agreement Implementation A pivotal factor in this section is Free Trade Agreement Integration.This parameter evaluates the number of substantial Free Trade Agreements(FTAs)that each country currently maintains.Noteworthy treaties include agreements with,or membership of,entities such as AS

58、EAN,Australia,China,India,Japan,South Korea,and the Regional Comprehensive Economic Partnership(RCEP).16D.International Trade TierVietnams position at the center of global FTA networksFree Trade Agreement Integration Parameter,D.Business Environment Tier,Emerging Asia Manufacturing Index 20241.Vietn

59、am holds the highest number of substantial FTAs.Vietnam has been actively pursuing participation in numerous international FTAs.This proactive initiative underscores Vietnams strategic intent to harness the advantages presented by foreign investors,with a clear aim of leveraging these opportunities

60、for sustained economic growth and development.17D.International Trade Tier2.China,Indonesia,Malaysia,Thailand,and the Philippines all benefit from membership to seven out of nine“significant”FTAs.These five countries have also been actively pursuing economic growth but have not achieved the same lev

61、el of success as Vietnam,in terms of FTA integration,lacking agreements with the UK and EU.3.India holds the seventh spot,holding six major agreements in total.4.Securing the bottom position,Bangladesh has a modest three major agreements.This can be attributed to Bangladeshs trade portfolio,characte

62、rized by limited diversification,with a staggering 80 percent of the countrys total exports dominated by the garment sector.This specialization renders Bangladesh comparatively less appealing to other developed nations.However,Bangladesh has been actively working to negotiate trade agreements with m

63、ajor economies like China and Japan.“Surpassing China in terms of domestic suppliers seems improbable for any country in this index,given the heavy reliance of numerous industries on China for specific parts and resources,posing challenges in finding alternatives.Pritesh Samuel Head of Business Inte

64、lligence Dezan Shira&Associates18E.Tax Policy TierE.Tax PolicyParameterWeightBDCNINIDMYPHTHVNE.Tax Policy5%647535121Corporate Tax Rates3%445234112Tax Incentives1%532314333Tax Efficiency1%74865213E.Tax Policy Tier,Emerging Asia Manufacturing Index 2024The Tax Policy criteria measures the tax incentiv

65、es in each economy for the manufacturing sector.Key parameters include Corporate Tax Rates and Tax Incentives for Manufacturers.Corporate Tax Rate-Tax Incentives Tax Efficiency,E.Tax Policy Tier,Emerging Asia Manufacturing Index 2024Corporate Tax RateTax EfficiencyTax IncentivesBangladeshChinaIndiaM

66、alaysiaPhilippinesThailandVietnamIndonesia8765432119E.Tax Policy TierExample Parameter:Corporate Tax RatesThe Corporate Tax Rates parameter is used to evaluate the tax burden that companies may encounter when choosing a location.At the time of compiling the EAMI 2024,the OECDs Global Minimum Tax(GMT

67、)and its effect on MNE profits have not been factored into this Tier yet.However,they are expected to have a significant impact on next years ranking.1.Vietnam and Thailand are the two leading countries in this parameter.2.Indonesia is in second place.While the country bears a slightly higher tax ra

68、te in comparison to Vietnam and Thailand,it counterbalances this through the provision of tax incentives tailored for manufacturers,contingent upon specific criteria.3.India holds the lowest place,demonstrating the highest corporate tax rate among other countries.This standing is further compounded

69、by comparatively higher import tariffs.The rationale behind Indias high taxes on foreign goods and entities stems from the nations strategic objective of enabling local manufacturing enterprises.However,India has been looking to reduce their current tax level to attract greater foreign capital and a

70、chieve higher growth.Example Parameter:Tax IncentivesThe goal of the Tax Incentives parameter is to provide insight into specific activities that allow a company to reduce its tax burden.The aim is to give businesses the most pragmatic and current insights.1.Malaysia holds the top spot in providing

71、the most tax incentives for foreign manufacturers.Malaysia provides a zero percent corporate tax rate for companies that choose to invest in the country,ranging from US$65 million to US$109 million for up to 15 years.Companies aiming to establish new services or relocate their businesses to Malaysia

72、 will also be eligible for a favorable tax rate of zero percent to 10 percent,applicable for up to 10 years.2.While India holds one of the highest corporate tax rates for foreign firms,it compensates by providing a wide range of incentives for high-value investments.India offers incentives for expor

73、t and import activities,from tax-free exports to the deferral of taxes on imported capital goods for manufacturing purposes.The pharmaceutical industry also receives a significant 200 percent deduction for R&D expenditure.Specifically,large-scale electronic manufacturers receive a special Production

74、-Linked Incentive(LPI)from 4-6 percent based on incremental sales for five years.20F.Infrastructure TierF.InfrastructureF.Infrastructure Tier,Emerging Asia Manufacturing Index 2024The Infrastructure criteria measures the overall quality of the infrastructure.It accounts for various infrastructure pa

75、rameters,such as Energy Cost,which measures the electricity prices offered in each country to support manufacturing operations,while Infrastructure Investment addresses the total percentage of GDP invested in infrastructure by the government.It also includes analysis of Water Availability and Intern

76、ational Freight Cost.ParameterWeightBDCNINIDMYPHTHVNF.Infrastructure21%715638241Energy Costs3%334156722Energy Availability3%211213113Water Cost3%156748234Water Availability1%467513425Gas/Fuel Cost1%468215736International Freight Cost1%841657327Infrastructure Investment2%413587628Quality of Infrastru

77、cture3%614534249Environmental Regulation1%5474231610Internet Speed2%7268351411Internet Freedom1%5623114521F.Infrastructure TierExample Parameter:Water AvailabilityThe Water Availability parameter aims to provide insight into access to water in key manufacturing centers.Water Availability9050Powered

78、by Bing GeoNames,Microsoft,NavInfo,OpenStreetMap,TomTom,ZenrinWater Availability Parameter,F.Infrastructure Tier,Emerging Asia Manufacturing Index 20241.Malaysia has the best access to water resources in Selangor,a key industrial hub in the country.However,research has found that there has been a ri

79、se in water pollution and climate-related issues.The city is also suffering from an elevated risk of flooding,which can disrupt the regions water supply.2.Vietnam holds the second place for its water availability in Ho Chi Minh City.Nevertheless,the tangible impacts of climate change threaten the un

80、interrupted and clean water supply in the city.Notably,the adverse effects of drought and seawater intrusion have begun to take a toll.22F.Infrastructure Tier3.India stands in last place due to the mismanagement and neglect of its groundwater.Reports have stated that continuous and unregulated groun

81、dwater pumping in rural areas has resulted in overconsumption,contributing to a shortage.Example Parameter:International Freight CostThe International Freight Cost parameter serves as a valuable lens through which we gain an understanding of the freight expenses originating from the primary port of

82、each country.This encompasses the cost associated with transporting freight to three pivotal global ports:Rotterdam(The Netherlands),Long Beach(California,USA),and Singapore.All costs are calculated using the standard 20-foot full container load.1.India leads in this parameter with the cheapest inte

83、rnational freight costs compared to other countries.India has a wide range of courier partners available from major ports,with pre-negotiated usage and significant discount rates.2.Vietnam takes the second spot with many benefits on its side that have led to lower international freight costs.Positio

84、ned strategically in Southeast Asia,Vietnam boasts well-connected shipping routes,linking it to pivotal markets such as the US,Europe,and other regions in Asia.3.Bangladesh takes last place for this criterion.Bangladesh suffers significantly from its sea route volatility.The nations maritime pathway

85、s are used for various criminal activities.Additionally,the limited development expenditure on deep-sea ports and inadequate facilities for accommodating large container ships exacerbates the logistical hurdles.External disruptions induced by the pandemic,affecting shipping schedules and container a

86、vailability,further compound Bangladeshs logistical woes,leading to an escalation in freight costs.“China dominates the infrastructure tier,boasting the regions largest ports,airports,leading highway network,and fastest high-speed railway.Chinas strategic infrastructure investments provide reliabili

87、ty and efficiency for manufacturers(if there is no lockdown).Bruno Hernandez Senior AssociateInternational Business Advisory Dezan Shira&Associates23G.Workforce TierG.WorkforceParameterWeightBDCNINIDMYPHTHVNG.Workforce19%471532861Population Size2%311274652Population Growth3%263421533Median Age3%2734

88、51864Education2%753612455Labor Market Mobility1%176527436Labor Productivity2%837416257Minimum Wage2%281573648Average Wage2%186273549Worker Protection Laws1%7246735110English Language Proficiency1%46452173G.Workforce Tier,Emerging Asia Manufacturing Index 2024The Workforce criteria measures the curre

89、nt condition of the labor force.Noteworthy parameters include the combination of Population Size,Population Growth,Median Age,Minimum Wage,and Average Wage.These factors can play pivotal role in identifying markets with cost-effective labor.24G.Workforce TierExample Parameters:Population Size-Popula

90、tion Growth-Median Age Rather than delving into each parameter individually,this section will cover the combination the three first parameters in this Tier which are:Population Size,Population Growth,and Median Age,which account for around 42%of the Workforce Tier rating.ChinaIndiaIndonesiaBanglades

91、hPhilippinesVietnamThailandMalaysiaPopulation Size Parameter,G.Workforce Tier,Emerging Asia Manufacturing Index 2024 1.Bangladesh:Bangladesh demonstrates a commendable performance across various parameters,maintaining a consistently high level of size,growth,and average median age.As the country has

92、 a decent-sized population,in addition to high population growth and a median age of 27,it possesses an attractive labor force for foreign investors.2.China:China holds one of the biggest populations in the world,allowing diverse opportunities for a large workforce.Nevertheless,the nation is experie

93、ncing minimal population growth.Moreover,China grapples with the emergence of an ageing population,reflected in a median age of 39.This demographic shift poses challenges,particularly for manufacturers,as the higher median age may not align with the optimal workforce cohort.3.India:India shares posi

94、tive attributes with China and Bangladesh,boasting the worlds largest population as of 2023,per UN estimates.Furthermore,it has great population growth potential and a median age of 28.With this in mind,the country shows massive potential for foreign investors with its highly attractive workforce si

95、ze.254.Indonesia:Indonesia maintains a balanced profile across the three key parameters,securing the second position globally in terms of population size,closely trailing China and India.With an average population growth rate and a median age of 31.7,the countrys overall labor force emerges as a sta

96、ble and secure option for investors.5.Malaysia:Malaysia has the lowest population size when compared to the other countries,standing at only 33.6 million,and making it relatively less attractive.Nevertheless,the nation compensates for this with a notably high population growth rate.Despite this adva

97、ntage,Malaysia faces a challenge with a relatively high median age of 33.7.The anticipation is that continued population growth will work towards narrowing this median age to a more acceptable range for an optimal workforce.6.Philippines:The Philippines retains an average overall population size,yet

98、 distinguishes itself with the highest population growth among the countries considered.Additionally,the country boasts a low median age of 26.8,signaling a promising future and a robust labor supply.7.Thailand:Thailand exhibits below-average performance across various categories,characterized by a

99、modest population size of 43.4 million,limited population growth,and the highest median age recorded at 43.4.Consequently,Thailand is considered the country with the lowest potential for foreign investors.8.Vietnam:Vietnam boasts a relatively small overall population size with a high median age of 3

100、5.6,showing signs of an aging population.Despite this,the country holds promise in its higher-than-average population growth,aiming to address the median age concern and create a more appealing market for manufacturing companies.G.Workforce Tier26Example Parameters:Minimum Wage-Average WageThe Minim

101、um Wage and Average Wage parameters provide a better understanding of salary expectations that businesses must face when setting up in these countries.A notable trend emerges where certain nations exhibit a low minimum wage yet grapple with significantly higher average wages,indicating pronounced in

102、come inequality.This phenomenon signifies a substantial gap between skilled and unskilled labor within the country.1.Bangladesh holds the most stable and one of the highest positions for both parameters.It secures the number one spot for average wage and the second spot for its minimum wage.The coun

103、trys low wages can be attributed to weak labor unions with limited influence on government decisions regarding legislation aimed at elevating the minimum wage.2.India and Indonesia specifically stand out with an inverted relationship between minimum wage and average wage.India features the most econ

104、omical minimum wage among the surveyed countries,juxtaposed with one of the highest average wages.Conversely,Indonesia exhibits the reverse scenario,showcasing a high minimum wage but a lower average wage in comparison to other nations.A.India:India holds one of the lowest minimum wages due to the s

105、igning of the Minimum Wages Act of 1948,which led to a range of variations of minimum wages across different regions of India.As such,regions like Bihar can have their minimum wage as low as INR 160(US$1.93)per day.Despite the relatively low minimum wage,the average wage in India remains notably hig

106、her than that of many other nations.This disparity is largely attributed to the substantial wage gap prevalent in key sectors such as IT,finance,and engineering.B.Indonesia:Contrary to India,Indonesia follows a different trajectory.The country boasts a higher minimum wage than many other countries a

107、s a result of a recent government-mandated increase of 10 percent for 2023.Notably,Indonesia adopts a nationwide minimum wage,maintaining uniformity across regions.Furthermore,approximately 60 percent of Indonesias labor force operates within the“informal economy”,which is not subject to government

108、regulation.This prevalence contributes to a lower average wage for the country.G.Workforce Tier27H.Innovation TierH.InnovationParameterWeightBDCNINIDMYPHTHVNH.Innovation5%814327651R&D Expenditure3%813427652Innovation/Technology Access2%81523764H.Innovation Tier,Emerging Asia Manufacturing Index 2024

109、R&D Expenditure Innovation/Technology Access Parameter,H.Innovation Tier,Emerging Asia Manufacturing Index 2024The Innovation criteria measures the specific innovation performance of each country.This criteria encompasses two main parameters:R&D expenditure and Innovation/Technology Access.Both para

110、meters are taken from the World Intellectual Property Organizations GlobalInnovation Index 2023.ChinaMalaysiaIndiaIndonesiaVietnamThailandPhilippinesBangladesh00708090100R&D as%of GDPAccess to Innovation Hubs and Technology Resources28H.Innovation TierExample Parameters:R&D Expenditure-In

111、novation/Technology AccessThis section serves as an overview of the innovation landscape of select countries.1.China comes out on top for innovation.Chinas research and development(R&D)expenditure witnessed an impressive increase of over 35 times between 1991 and 2018.This remarkable growth has made

112、 China an innovation powerhouse,drawing significant foreign direct investment(FDI)from international investors.2.Coming in second,Malaysia is actively working towards establishing itself as a regional startup hub by 2025.The country places significant emphasis on key sectors such as Fintech,Edtech,a

113、nd eCommerce,according to the Malaysia Tech Entrepreneur Program.These sectors constitute 18 percent,15 percent,and 11 percent of the overall startup landscape in Malaysia,respectively.3.Vietnam trails behind in position number five but has ambitions to become an innovation hub and R&D center.Like M

114、alaysia,Vietnam is actively working to enhance its startup ecosystem.Vietnam has witnessed a surge in startups,with startup funding projected to reach US$5 billion in 2023-2025.“None of the other seven countries in this ranking can surpass China in terms of its current innovation rate,given Chinas s

115、tatus as an innovative powerhouse,distinguished by substantial investments in research and development across multiple industries.Ines LiuSenior ManagerInternational Business AdvisoryDezan Shira&Associates29ConclusionThe manufacturing sector will always remain a crucial sector for the global economy

116、.However,top-ranking emerging Asian countries in this sector must not assume their position is secure.That said,if emerging countries in the manufacturing sector sustain their current trajectory of growth,they may surpass the competition,leading to changes to the index for the upcoming year.As of th

117、is report,the final rankings are as follows:1.China:Claiming the top position in this years index is China.The country distinguishes itself in infrastructure and innovation.China strategically channels substantial investments into these areas,aiming to secure a competitive edge over other Emerging A

118、sia countries.However,its performance falters when it comes to its workforce,which is marked by elevated minimum and average wages,coupled with concerns about population growth and the prevailing median age.While the market holds promise for technological advancements,the outlook for the future work

119、force emerges as a notable concern.EconomyTax PolicyPolitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructureChina Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia9753130Conclusio

120、nEconomyTax PolicyPolitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructureVietnam Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia975312.Vietnam:Vietnam trails after China in sec

121、ond place.The country excels in international trade with a high level of openness but also holds an average position across all sections of this report.However,certain aspects,notably innovation and labor,face challenges primarily due to a relatively high median age.Despite this,the country compensa

122、tes with a robust population growth rate.There is room for improvement,particularly in terms of innovation and investment when compared to other countries.3.Malaysia:Malaysia takes the third spot in this years index.Malaysia is a formidable country that performs extremely well,retaining the top thre

123、e position in all seven sections,albeit with a lag in the Economy criteria.Challenges arise in areas like currency volatility and manufacturing growth,where the disruptive global manufacturing landscape impacts the countrys performance.Despite these setbacks,Malaysia stands as a resilient economy,ha

124、rboring significant potential for future growth.Its strength lies in a well-rounded performance across all other criteria.31EconomyEconomyTax PolicyTax PolicyPolitical RiskPolitical RiskInnovationInnovationBusiness EnvironmentBusiness EnvironmentWorkforceWorkforceInternational TradeInternational Tra

125、deInfrastructureInfrastructureMalaysia Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024India Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024ConclusionBangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesiaBangladeshChinaIndiaMalaysia

126、PhilippinesThailandVietnamIndonesia97531975314.India:Securing the fourth spot in this years index is India.India is a rising force as it performs relatively well in certain criteria like Economy and Workforce.However,there is considerable scope for improvement in areas like Political Risk,Internatio

127、nal Trade,and Tax Policy.Indias openness is limited as are the incentives available for foreign companies.32ConclusionEconomyTax PolicyPolitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructureIndonesia Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing In

128、dex 2024BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia975315.Indonesia:Attaining the fifth position is Indonesia.The country has the most stable economy,excelling in the Economy criteria,as it demonstrates exemplary inflation control supported by a robust currency.However,across all

129、 other criteria,Indonesia lags behind.Despite this,the country holds a strong economic foundation.If the economy continues to maintain its top position in the coming year,Indonesia stands poised to leverage itself for significant potential growth in the next years index.6.Thailand:Securing the sixth

130、 position in this years index is Thailand.The country distinguishes itself with a highly favorable level of openness with its tax policy and robust infrastructure ranking second only to China.However,Thailand exhibits relatively average or even notably weak performance in the Economy and Workforce c

131、riteria.The economy grapples with challenges such as high inflation,a weakened currency,and insufficient economic resilience,underscoring an incomplete recovery post-pandemic.Additionally,with sluggish growth,a modest population size,and high median age,the country presents a manufacturing sector wi

132、th a less optimistic outlook unless efforts are made to address these challenges.33ConclusionEconomyTax PolicyPolitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructureThailand Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024EconomyTax PolicyP

133、olitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructurePhilippines Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesiaBangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia

134、97531975317.Philippines:The Philippines holds the sixth spot in this years index,showing promise for its future workforce.Nevertheless,challenges persist in other areas,particularly in the realm of infrastructure.There is clear potential for improvement as the country endeavors to bolster its overal

135、l standing.34ConclusionEconomyTax PolicyPolitical RiskInnovationBusiness EnvironmentWorkforceInternational TradeInfrastructureBangladesh Ranking by Tier in Radar Visualization,Emerging Asia Manufacturing Index 2024BangladeshChinaIndiaMalaysiaPhilippinesThailandVietnamIndonesia975318.Bangladesh:Bangl

136、adesh comes in eighth,grappling with various challenges across all criteria.Despite these concerns,there are efforts to enhance its standing by engaging in more FTAs and offering increased incentives to attract FDI in the future.Nonetheless,the current assessment indicates substantial room for impro

137、vement,as Bangladesh trails behind the other selected nations in this years EAMI.Nonetheless,there is promise as Bangladeshs youthful population and potential are emerging.Bangladesh surpassed all seven other countries in various parameters including Economic Resilience,Debt,Industries Restricted to

138、 FDI,Water Cost,Labor Market Mobility,and Average Wage.35AppendixEmerging Asia Manufacturing Index 2024:Full Ranking Sheet(All Parameters)ParameterWeightBDCNINIDMYPHTHVNA.Economy13%542176831Economic,Financial Standing1%715423362Economic Growth2%241453643Economic Resilience3%123456724Currency Volatil

139、ity2%342175865Debt1%167253416Manufacturing Growth2%371485627Inflation2%86512473B.Political Risk6%836517421Political Stability3%837416522Corruption Index2%824617533Travel Risk1%4444231136 AppendixParameterWeightBDCNINIDMYPHTHVNC.Business Environment19%782615431Business Environment Rating3%835617242Ma

140、nufacturing Capital Minimum Average3%271856343Average Company Setup Time4%263214254Intellectual Property Protection2%723416565Industries Restricted to FDI3%173526846Ease of Hiring Foreign Staff4%42321121D.International Trade12%827536411Free Trade Integration4%423222212Customs Facilities2%827516343Tr

141、ade Balance1%614125334Trade Openness1%875624315Tariffs2%847362516Domestic Suppliers2%8124375637 AppendixParameterWeightBDCNINIDMYPHTHVNE.Tax Policy5%647535121Corporate Tax Rates3%445234112Tax Incentives1%532314333Tax Efficiency1%74865213F.Infrastructure21%715638241Energy Costs3%334156722Energy Avail

142、ability3%211213113Water Cost3%156748234Water Availability1%467513425Gas/Fuel Cost1%468215736International Freight Cost1%841657327Infrastructure Investment2%413587628Quality of Infrastructure3%614534249Environmental Regulation1%5474231610Internet Speed2%7268351411Internet Freedom1%5623114538G.Workfor

143、ce19%471532861Population Size2%311274652Population Growth3%263421533Median Age3%273451864Education2%753612455Labor Market Mobility1%176527436Labor Productivity2%837416257Minimum Wage2%281573648Average Wage2%186273549Worker Protection Laws1%7246735110English Language Proficiency1%46452173H.Innovation

144、5%814327651R&D Expenditure3%813427652Innovation/Technology Access2%81523764Final Rank81453762ParameterWeightBDCNINIDMYPHTHVN AppendixChina Hong Kong SAR Australia Bangladesh Dubai UAE Germany India Indonesia Italy Japan Malaysia Mongolia Nepal Singapore South KoreaSri Lanka Thailand Turkiye The Philippines United States VietnamScan this QR codeVisit our mobile page and get the latest updates,investors news and resources with us