According to the results of the ‘Survey on the Actual Situation of Overseas Expansion Companies’ Production and Sales Bases (2023)’ recently released by Teikoku Databank, the production and sales base is in ‘China’, but its significance is declining. On the other hand, production bases are increasing in ‘India’, and sales bases in ‘America’ and ‘Taiwan’, among others.
As for the priority destinations for production bases, the top two are ‘China’ and ‘Vietnam’.
As of 2023, 28.1% of companies are engaged in overseas expansion and international transactions. The survey asked 2,292 companies that are engaged in overseas expansion in some form, either directly or indirectly, about the most prioritized destinations for production and sales bases. As a result, ‘China’ was the most important destination for production bases with 17.1%. Following that were ‘Vietnam’ (9.3%), ‘Thailand’ (5.8%), ‘Taiwan’ (2.9%), ‘Indonesia’ (2.6%), and other Asian countries and regions ranked high. Compared to the previous survey in September 2019, ‘China’ decreased by 6.7 percentage points. Among the top 10 countries and regions, all except ‘India’ saw a decline.
For sales bases, the top two are ‘China’ and ‘America’, with ‘Thailand’ ranking third.
Similarly, ‘China’ took the top spot for sales bases with 19.6%. Following that were ‘America’ (9.8%), ‘Thailand’ (6.5%), ‘Vietnam’ (6.1%), ‘Taiwan’ (5.5%), and others. Compared to the previous survey, ‘America’ and ‘Taiwan’, among others, showed an increase among the top 10 countries and regions.
Overseas expansion companies continue to value Asian countries and regions as business partners, regardless of the pre and post-COVID era.
However, concerns arise about the rise in costs, such as labor expenses in ‘China,’ leading to a decrease in its advantages as an investment environment. Some also express worries about country risks associated with China. In the post-COVID era, while ‘China’ is recognized as the most important base, there is a possibility of domestic retraction and a shift of bases to other countries and regions.”