Why the developed country choose the countries of southeast Asia to build processing factory used their labour force?
发布时间 2023-12-20 20:41:41作者: freedragon
One of the main reasons why developed countries such as the United States, Japan, and Germany choose Southeast Asian countries like Vietnam, Cambodia, and Thailand to set up processing factories is the low cost of labor. These countries have a large pool of skilled and unskilled workers who are willing to work for lower wages compared to their counterparts in the developed world. This allows companies to significantly reduce their production costs, which in turn increases their profit margins. For example, in Vietnam, the minimum wage is around 170permonth,whileintheUnitedStates,itisaround720 per month. This significant difference in labor costs makes it more profitable for companies to invest in Vietnam.
Another factor that contributes to the decision of developed countries to set up processing factories in Southeast Asia is the favorable government policies. Governments in these countries often provide incentives such as tax breaks, land subsidies, and relaxed labor laws to attract foreign investment. These incentives help companies to set up operations in these countries with minimal costs and regulations. For example, in Vietnam, the government has implemented policies to encourage foreign investment, such as offering tax breaks for up to 10 years and providing land at low prices.
The strategic geographical location of Southeast Asia is another factor that makes it an attractive destination for developed countries to set up processing factories. The region is located close to major markets such as China, Japan, and South Korea, which makes it convenient for companies to export their products. In addition, Southeast Asia is also home to a large number of natural resources, such as rubber, timber, and oil, which are crucial for various industries. This proximity to raw materials can help companies to reduce their transportation costs and ensure a steady supply of raw materials.
In conclusion, developed countries choose countries in Southeast Asia to build processing factories due to various factors such as the low cost of labor, favorable government policies, and strategic geographical location. However, it is important to note that while these factors contribute to the decision to set up operations in Southeast Asia, companies must also consider other factors such as the quality of the workforce, infrastructure, and political stability when making their investment decisions.