Government

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Services

Industry

The industrial sector of the economy, also addressed as the secondary sector, transforms raw materials into (semi-)finished products that are either purchased by the end user or sent for further processing or fabrication. At current, China is considered as the factory of the world. Though, as a result of of the rise of the so-called MITI-V (or mighty five – Malaysia, India, Thailand, Indonesia, and Vietnam) South East Asia will take up China’s mantle of the world’s factory over the next 10 to 15 years and become the top economies for low-cost manufacturing, according to the analysts.  Next to growing commercial and logistical connections between cheap labour and sophisticated producers, the ASEAN region also offers the geographical benefits of producing goods so close to large and growing markets and trade routes. A huge opportunity is emerging for South East Asia as ASEAN integration increases local and global trade; attracting more production from multinationals as Chinese facilities costs rise. If it were counted as a single country, ASEAN would already be the world’s seventh-largest economy with a combined GDP of US$2.4 trillion.

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