Manufacturing industry supports the future of developing countries in Asia
Under the impact of the sluggish economic prospects in the US and Europe
Release time：
2024-08-20
Source：
Under the impact of the sluggish economic prospects in the US and Europe, and the possible decline in exports, the further upgrading of Asia's manufacturing industry is facing a severe test. The recently released global and national Purchasing Managers' Index (PMI) for manufacturing indicate a decline in global manufacturing output and orders. The latest global PMI index released by JPMorgan Chase dropped from 50.7% in July to 50.1% in August. According to convention, an index above 50% indicates overall expansion of the manufacturing industry, while the opposite indicates contraction. Obviously, the global manufacturing industry is in a critical stage of either continuing to rise or decline.
The increase in domestic demand is expected to offset the adverse impact of the external environment
Asia is the base of global manufacturing industry. The manufacturing industry in the vast majority of Asian countries is more developed than the service industry, and ASEAN and China, Japan, and South Korea (10+3) rely on manufacturing as their export pillar. According to data from the Asian Development Bank, in 2009, China accounted for 13% of global manufacturing exports, the 10 ASEAN countries accounted for 6.1%, Japan accounted for about 6%, South Korea accounted for 3.7%, and the "10+3" accounted for a total of about 29%. In the global export of machinery and transportation equipment, "10+3" accounts for 31%.
Analysis suggests that the manufacturing industry in Asia was greatly impacted by the 2008 international financial crisis. Since then, major manufacturing countries in Asia have adjusted their export structures and focused on exploring new export markets. In recent years, domestic demand in Asian countries has also seen a rapid increase, which has increased the region's ability to "digest" manufacturing products. The recently released Purchasing Managers' Index for Asian countries shows that although new export order data has declined, overall new orders and employment data are growing synchronously, indicating that more new orders come from local sources, and the increase in domestic demand is expected to offset the adverse effects of the external environment.
The development of manufacturing has become an important reason for improving the living standards of people in Asian countries, and the improvement of living standards also contributes to the expansion of manufacturing. During an interview with our reporter, Senior Economist at the Philippine National Bureau of the Asian Development Bank, Keiro Usui, stated that manufacturing is the backbone of a country's economic development, and the main path for most developing countries in Asia to improve their economies and reduce poverty is through the continuous development of manufacturing.
Large multinational corporations may increase their investment in Asia
Zhuang Juzhong, Deputy Chief Economist of the Asian Development Bank, told our reporter that compared with Latin American countries, the manufacturing industry in Asia has advantages such as cheap labor prices, high quality, abundant human capital, and overall stable political and investment environment. In addition, the vast markets in countries such as China and India have made Asia a major investment target for global manufacturing companies.
The World Investment Report 2011 recently released by the United Nations Conference on Trade and Development stated that in 2010, foreign direct investment entering South Asia, East Asia, and Southeast Asia increased by 24%, reaching $300 billion, accounting for nearly a quarter of the global total. In 2010, foreign direct investment entering ASEAN more than doubled, reaching $79 billion. The report predicts that Asian economies have made significant progress in regional economic integration, and the overall development environment in the region will be more conducive to attracting foreign investment.
industry,autoindustry
Related News
2025-04-10
