Emerging Markets - Highlight
17 March 2017
With production costs rising in China, manufacturers are looking at less costly places to diversify their factory investment, in particular to the ASEAN-CLMV countries. Cambodia, with its preferential trade access to major developed countries and relatively stable economic performance, could potentially play a bigger role in the increasing integrated regional supply chain, despite lingering concerns over soaring labour costs and backward infrastructure.
With work now under way on the China-Laos Railway Project, hopes are high that it will form a key element of the Belt and Road Initiative, transforming Laos' infrastructure and delivering rapid and affordable freight transit across Southeast Asia.
With a three-year slump hopefully behind it, the African mining industry is now looking to the future, though many investors – with the possible exception of China – remain unwilling to back this lucrative, but conflicted, sector.