Service Industries - Highlight
27 March 2017
With its foreign-policy pivot towards China, the Philippines looks to have secured extensive mainland investment in its own ambitious infrastructure-redevelopment programme as part of President Xi Jinping's far-reaching Belt and Road Initiative.
Despite ever-rising incomes, several external and internal factors may compromise the viability of the Philippines' largest source of foreign currency, a development that has spurred a rethink of the business process outsourcing sector.
Vietnam has number of favourable attributes, including a youthful labour force and relatively low production costs. FDI in Vietnam is not just geared towards the production of labour-intensive goods, but also more sophisticated products like IT equipment and other electronic items. But such production is largely processing activities by nature. As Vietnam still lacks supporting industries, expansion in processing production has elicited vast demand for a variety of production inputs.