VN to surpass Thailand in 5 years, study forecasts
December 04, 2012 00:00 By THE NATION 6,566 Viewed
Over the next five years, Thailand's competitive manufacturing ranking will fall from 11th place to 15th, behind Vietnam, which will enter the top 10, according to Deloitte Touche Tohmatsu.
Southeast Asia will be in the spotlight, while China is the most competitive manufacturing nation in the world today and will retain that rank five years from now, followed by Indonesia.
Nualjai Kittisrisomboon, head of manufacturing at Deloitte Southeast Asia, said yesterday that the “2013 Global Manufacturing Competitiveness Index” report showed that countries in Southeast Asia such as Singapore, Thailand, Malaysia and Vietnam were in the top 20 in the world.
Those countries in five years will climb to high places or maintain the same rank, especially Indonesia and Vietnam.
Indonesia, which this year is 17th, could be 11th, while India will be in second place, up from fourth now.
Even though China and India remain prime manufacturing locations, in fact, producers are shifting focus to minority markets that are also the hubs of supply-chain production.
The 20th-century manufacturing stalwarts such as the United States, Germany and Japan will be challenged to maintain their competitive edge against emerging nations such as China, India and Brazil, the report said.
The US will sink to fifth from third, while South Korea will fall to sixth from fifth.
Germany, ranking second, will drop to fourth behind Brazil, which will move up to third.
Japan will fall out of the top 10 to 12th place.
The plunge in the competitiveness of European countries will open up opportunities for Asia.
“America and Europe have continued to watch emerging markets mature and become formidable competitors over the past decade,” said Craig Giffi, vice chairman of Deloitte United States and consumer and industrial products industry leader, who co-authored the report and led the research team
Giffi expects that in five years, key emerging nations will vault forward in the rankings. In 10 years, 10 countries from Asia will rank in the top 15 of most competitive manufacturing nations.
The report was based on an in-depth analysis of survey responses from more than 550 chief executives and senior leaders at manufacturing companies around the world.