3 Strategic Asia outsourcing destinations

American businesses have been outsourcing much of their production and labor to countries in Asia for several decades. Due to its low cost and generally high-quality labor and production, China has long been the go-to country for outsourcing. However, due to its popularity among American manufacturers, outsourcing to China has become more expensive. Many low-quality suppliers have begun to crop up, trying to get a piece of the action.

If you’re looking for a strategic destination for outsourcing some of your labor or production, here are 3 other countries you might want to look at. Each of these offers low-cost, highly skilled labor, and are generally underutilized by American businesses.

India

Many people believe that India could be the next China when it comes to being a global hub of production. In September of 2014, Prime Minister Narendra Modi created the Make in India initiative, which was aimed at making India a global manufacturing hub. The intent was to do this by developing the country’s manufacturing sector and introducing other initiatives to encourage other countries to manufacture their products in India.

Since the creation of the Make in India initiative, the country’s manufacturing output has increased significantly and continues to become a more popular source for businesses looking for reliable, affordable production of products. However, only time will tell if India will rise to compete with China in this area of business truly.

Vietnam

In August of 2018, Vietnam saw a 16% manufacturing economic growth and continues to see exceptional growth thanks to the country’s economic activism. The growth in Vietnam’s manufacturing sector has caused more and more businesses to look towards this country for labor and production of goods, and most suppliers tend to be reliable.

However, keep in mind that, since Vietnam is relatively new to the world of manufacturing, many suppliers in this country may lack experience in certain industries. So, if you have a niche industry with very specific requirements, be sure to ask suppliers about their experience handling similar products before you contract with them. Additionally, production time from Vietnam may be a bit slower than it would be in China, due to a smaller labor force in the country and less access to raw materials.

Taiwan

With close connections to China, it’s little wonder that Taiwan is also a rising star in the manufacturing industry. In fact, in 2017, Taiwan was the world’s 16th largest exporter and 18th largest importer of merchandise. The country’s economy continues to grow and expand. Between 2016 and 2017, their overall imports and exports increased by 12.5 percent and 13.2 percent, respectively. Its economy also expanded by 2.86 percent.

With such impressive economic growth in the area, Taiwan is an excellent option for outsourcing. The booming economy means a larger, more skilled workforce. And, with its proximity to China, it has excellent access to much of the same raw materials.

If you’re considering outsourcing your labor and production to Asia, don’t default to selecting a supplier in China. There are many Asian suppliers in other countries on the continent, which can offer exceptional quality in their product manufacturing, and at a price, your business can afford. Contact us today for assistance in finding verified Asian suppliers that can offer you the reliability, quality, and turnaround time you need, and at a low cost that can maximize your profits.