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Transformation of Manufacturing Business in Southern China in the Changing Tax Environment: Opportunities and Challenges

Manufacturing has long been one of the key economic drivers in Asia particularly in China, where its well-known low labour and operating costs have given it a competitive edge. The changing global economic landscape and strong economic growth in China is now creating challenges for manufacturers based there Geographical transformation and strategies for running manufacturing businesses effectively are now of strategic, financial, and operational interest to managers. This article provides a general overview of several new and desirable manufacturing locations in South East Asia, namely Cambodia, Indonesia, Myanmar and Vietnam, that are increasingly being used as production bases. It also provides a snapshot of some of the challenges that may arise from such geographical transformation.