Can Southeast Asia become the new world factory?

According to media reports, since 2008, Southeast Asia has diverted 30% of China's orders, which has had an impact on 19 million footwear practitioners in China.

The data also shows that in the first quarter of this year, US imports of tablets and laptops from China fell by 14% year-on-year, while imports from Vietnam increased by more than one million units.

The mobile phone giant Samsung set up a new factory in Vietnam last year.

In addition, low wage prices are also one of the factors that enhance the competitiveness of Southeast Asia.

However, Southeast Asia’s price advantage is also facing challenges.

Southeast Asia's disadvantages continue to be highlighted

Yang Panpan, an assistant researcher at the Global Macro Research Office of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said that due to the similarities between China and Vietnam in the export structure, their competitive relationship has become clearer.

Yang Panpan analyzed that Vietnam is facing two major economic slowdown factors.

However, the violence against foreign investors in Vietnam is not the first outbreak of instability in Southeast Asia.

In November last year, political turmoil broke out in Thailand, which caused many automakers to threaten to withdraw from the country.

In addition to political instability, the economic fundamentals of Southeast Asian countries are also prone to fluctuations.

Liu Hongwei, a clothing retail expert and a partner of Peking University's Zongheng Management Consulting Group, said that China has a relatively large population base.

Can Mexican manufacturing challenge China?

Emerging market countries such as Mexico and India have also become investors' favorite regions due to their low prices and stable economic conditions.

Automobile manufacturers such as Nissan and Volkswagen became the first brands to enter Mexico.

Mexico is gradually showing its advantages in terms of labor costs.

But this does not mean that countries such as Mexico can replace China as the new world factory.

China's leading position in infrastructure construction is also obvious.
In terms of logistics facilities alone, as of 2013, among the top 20 airports in the world in terms of cargo tonnage, Asia accounted for 7 seats, the United States accounted for 7 seats, and none of them were in Mexico.
Among the top 20 ports in the world, China alone has 9 seats, the United States, Japan, and Australia each have two seats, and none of them are in Mexico.

Wall Street analyst Lei Yang believes that a country with underdeveloped logistics facilities and only relying on trucks for transportation is destined to be the world's factory.
In addition, Mexico also faces the threat of a deterioration in its security.

At the same time, China itself is also promoting the upgrading of manufacturing.
From January to April, the actual use of foreign investment in the manufacturing of communications equipment, computers and other electronic equipment manufacturing industries was US$2.
43 billion, an increase of 8.
8%, which was not only better than the growth rate of FDI absorption by the manufacturing industry, but also faster than the overall FDI growth rate.
To a certain extent, it reflects that China's development and upgrading of mid-to-high-end manufacturing is still very attractive to foreign investment.