JETRO Releases its Latest Survey of Japanese Manufacturers in ASEAN and India.Tokyo, Japan, Mar 30, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - The Japan External Trade Organization Japan External Trade Organization (日本貿易振興会 (JETRO JETRO Japan External Trade Organization ) released the results of its latest annual survey of Japanese-affiliated manufacturers operating in six ASEAN ASEAN: see Association of Southeast Asian Nations. ASEAN in full Association of Southeast Asian Nations International organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) and India. The survey, conducted in January 2006, received valid responses from 966 companies, or 51.8 % of the 1,865 firms sent questionnaires. The survey suggests that Japanese manufactures in ASEAN are working to re-align their production network in the region, against the backdrop Backdrop may refer to:
A region of Asia coextensive with the Far East. East Asian adj. & n. . Within this re-alignment, respondent In Equity practice, the party who answers a bill or other proceeding in equity. The party against whom an appeal or motion, an application for a court order, is instituted and who is required to answer in order to protect his or her interests. firms are primarily moving production bases from one ASEAN country to another, mostly to Indonesia, Malaysia, Thailand and Vietnam (in that order), and from China to ASEAN, mainly Vietnam, followed by the Philippines, Thailand and Malaysia. More than a quarter of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. in Vietnam (25.8%) cited China as the country from which they transferred production operations. Firms were polled about measures they were taking (if any) to respond to risks associated with doing business in/with China, such as the impact of yuan Yuan (yüän), river, 540 mi (869 km) long, rising in S Guizhou prov. and flowing generally NE to Donting lake, Hunan prov., SE China. Navigation above Changde is limited by rapids to small craft. revaluations and the April 2005 anti-Japan demonstrations. The majority of respondents (73.2% of firms in ASEAN and 75.6% in India) were taking no measures, the survey found. Vietnam, however, had the highest percentage of firms that were taking measures, such as expanding production in Vietnam rather than, as formerly planned, China (20.5%), or transferring aspects of production from China to Vietnam (6.8%). This suggests that Vietnam is becoming more of a "cushion Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service. cushion See call protection. " for Japanese firms seeking to reduce their over-dependence on China and spread their business risks in the region more evenly. Thailand ranked highest in a question that asked firms to rate the most optimal location for establishing a production/sales base in the coming five to ten years; Vietnam, India and China (in that order) were other top locations. Firms with production bases in both ASEAN/India and China were asked to contrast the investment environments of each. Overall, ASEAN ranked behind China in the level of supporting industries and skills of researchers and engineers; respondents in Singapore and India, however, ranked researchers and engineers in their respective countries as superior to those in China. Firms with production bases in both ASEAN/India and China were also asked to compare their production costs (for producing the same item) for the two regions. More than a third of such firms (34.5%) selected ASEAN/India--specifically Vietnam (56.1%), India (48.8%) and the Philippines (40.0%)--as having lower production costs compared to China. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the survey, nearly 80% of respondents in ASEAN (75.4%) and India (79.7%) expect to post an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in 2005, which is higher than the 73.0% figure obtained from respondents to the same question in JETRO's latest annual survey (conducted in Dec. 2005-Jan. 2006) of Japanese manufacturers in Northeast Asia Often used interchangeably with the term 'East Asia,' Northeast Asia is, as its name implies, in the geographic northeast region of Asia. Being a geographic, rather than a cultural term--as opposed to East Asia, which has varying definitions, some being cultural--Northeast Asia . Nearly half of respondents in ASEAN (48.5%) and over 60% in India (64.7%) in this survey expect improved year-on-year profit/loss performance in 2005. A majority of respondents in Thailand (60.0%) and India (61.4%) cited increased sales in their respective domestic markets (both of which have seen domestic demand rise), as the driving force in their improved profitability in 2005. Regarding the outlook for 2006, nearly half of respondents in ASEAN (47.5%) expect improved profit/loss performance, mainly due to improved product efficiency and increased export sales. Compared to prospects for 2005, a smaller percentage of respondents in ASEAN expect increased sales in the domestic market in 2006, suggesting that Japanese manufacturers in the region will be looking more to exports for profits in the current year. This contrasts with India, where nearly 70% of respondents (68.2%) expect higher sales in the domestic market, on the back of growing demand in the country. Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. operating in China appear to be more upbeat than those in ASEAN, if the figures in this survey are compared with those obtained in JETRO's latest survey of companies in Northeast Asia (cited above). Nearly half of respondents in China (49.3%) expect improved performance in 2005 and a full 58.0% have such expectations for 2006, whereas 48.5% of firms in ASEAN expect improved performance in 2005 (and 47.5% for 2006). Further, 31.8% of firms in China expect worsened business performance for 2005 and just 9.9% have such expectations for 2006; compared to figures of 30.1% (2005) and 19.1% for (2006) for firms in ASEAN. About JETRO The Japan External Trade Organization, or JETRO, is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Originally established in 1958 to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential. Source: JETRO Contact: Japan External Trade Organization (JETRO) Public Relations Division E-mail: webinfo@jetro.go.jp Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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