Asean set to become Asia's next Pearl River Delta

ASEAN is poised to become Asia's next low-cost manufacturing powerhouse as wages in China's Pearl River Delta (PRD) factory belt continue to creep up. As China's wage competitiveness wanes, Asean stands to gain, with its lower costs and abundant supply of labour over the next 20 years.

Asean's high rate of GDP growth, and rising household affluence, means that companies relocating from the PRD could capture a share of a large and growing consumer market.

Our latest survey shows that manufacturers in the PRD - spanning nine cities in Guangdong province and accounting for 27 per cent of Chinese exports - continue to face persistent labour shortages and rising wages.