| Our proprietary-fee based 9 pages Table of costs summary and five countries investment cost comparison is available, along with full-report for each country listed. Please contact us for more information on price and timing. (please see sample table below) |
| China is steadily moving
from the first choice for export-oriented businesses to more of a focus
for companies seeking to enter the China consumer market. China's
days as the lowest-cost export base for a company are largely past,
especially in the Eastern Seabord regions such as Guangdong province
and the area around Shanghai. These areas are becoming relatively
higher in cost and as a consequence, many companies are looking to
Southeast Asia. Thailand can be a very cost competitive
location to manufacture or locate a business. Although China is currently getting much more publicity, a close analysis of cost and other factors shows that Thailand is very competitive and generally exceeds China and even Vietnam which oftentimes is thought of as a low-cost option for some operations. When factors such as long term consistent government pro-business policies, stability of legal provisions, rule of law, right to own land (as opposed to lease), mandated additional personnel benefits, tax incentives and quality of life for company executives sent to manage operation are factored in to the decision process, Thailand looks like a very good choice. Vietnam continues to be a top choice because of the work ethic of its people, the relatively low labor and other costs and because of highly attractive government incentives and an improving legal and business environment. Cambodia and Laos are more recently developing locations. Cambodia in late 2007 started to get inceasing interest from agro-business companies and in 2008 also labor intensive industries disatisfied with rising cost in China and most recently concerned by the high rate of inflation in Vietnam. Laos is the most recently developing and only has a limited number of industrial parks at this point but is already in 2008 starting to get interest from companies with agricultural related businesses, companies with a need for larger low-wage, low-skill workers and for companies supplying other operations in Vietnam or Thailand. Below are a sample partial summary of our report. We update the information regularly and the detailed numbers are included in each of our country's report. Contact us for more information. |
| Factor |
Vietnam |
Thailand |
Cambodia |
China |
Laos |
| Land |
|||||
| Land
cost |
The
highest |
Second
highest |
|||
| land
ownership |
Lease |
Total
ownership |
Lease | Lease | Lease |
| Plot
coverage |
Allow
more building for same amount of land |
||||
| Building
cost |
The
highest |
The
lowest |
|||
| Ultilities |
|||||
| Electricity |
The
highest in the region - much higher than others |
||||
| Water |
Varied
depending on location and IZ |
10
year deduct as tax incorporate |
High |
Very low - the lowest | |
| Gas |
Low |
||||
| Heat |
Not required | Not required | Not required | Not required | |
| Sewage/waste
water |
Slightly
higher than Vietnam |
Varied
depends on IZ |
Varied depends on IZ | ||
| Cost
of Taxes |
|||||
..More factors in full-report |
..More data in full-report |
.. More data in full-report |
..More data in full-report |
..More data in full-report |
..More data in full-report |
Copyright, 2008
© Runckel & Associates
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