Risk management alert issued by Atradius on leading Asian economies

Chris Chen, Head of Risk – China Risk Services, told LM in an interview that given the uncertainty of trade war, more and more firms are holding further investment into China and considering relocate production lines to other countries.

By ·

, a trade credit insurer based in Amsterdam, recently released a detailed report focused on the performance of 11 key Asian economies, including China, India, Indonesia, Japan, Malaysia, The Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. 

For each country, the report provides key economic indicators, the outlook for major industries and an analysis of the political and economic situation. 

Some of the main takeaways from the Atradius Report include: 

  • Robust domestic demand in India is resulting in record high annual economic growth rates of 7 percent through 2020, but the country’s structural deficiencies may threaten this outlook. 
  • Singapore and South Korea show the lowest amount of risk in the Asia-Pacific region, both are susceptible to risks stemming from an escalation of the Sino-U.S. trade dispute. 
  • Regarding Japan, analysts say there is an urgent need to make the labor market more flexible, to end protections for farmers, doctors and pharmaceutical companies and to introduce more business deregulation.
  • These are just a few of the many insights included in the report. If you’d like to see a copy of the report or are interested in talking to an Atradius economist for more information, let me know.

, Head of Risk – China Risk Services, told LM in an interview that given the uncertainty of trade war, more and more firms are holding further investment into China and considering relocate production lines to other countries.

“This is especially true for ICT manufacturers who are moving factories to Southeast Asia like Vietnam and Malaysia,” she said “Thailand and Indonesia are also taken into consideration. Cost of labor and manpower are main considerations.”

Chen added that textile companies are shifting their supply chain outside China to Southeast Asia to Vietnam and Bangladesh. 

“Bangladesh is experiencing a renaissance,” said Chen. “Generally for enterprises, additional tariffs are not the only concern. There is increased pressure from the rising cost of the labor force.”

Asia Countries - Atradius STAR Political Risk Rating*:

  • China: 3 (Moderate-Low Risk) – Stable
  • India: 4 (Moderate-Low Risk) – Negative
  • Indonesia: 4 (Moderate-Low Risk) – Negative
  • Japan: 3 (Moderate-Low Risk) – Positive
  • Malaysia: 3 (Moderate-Low Risk) – Negative
  • Philippines: 4 (Moderate-Low Risk) – Stable
  • Singapore: 1 (Low Risk) – Stable
  • South Korea: 2 (Low Risk) – Negative
  • Taiwan: 2 (Low Risk) – Negative
  • Thailand: 4 (Moderate-Low Risk) – Stable
  • Vietnam: 5 (Moderate Risk) – Negative

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [ protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.


Latest Whitepaper
2019 Top 5 Trends of Enterprise Labeling
This year’s sixth annual Top 5 Trends in Enterprise Labeling report outlines significant shifts in labeling that are impacting businesses and global supply chains at an unprecedented level.
Download Today!
From the April 2019 Logistics Management Magazine Issue
This month we roll out the findings of Logistics Management’s 35th Annual Salary Survey, a research project conducted by American Truck Research Group (PRG) that serves as the foundation of our best-read editorial feature of our publishing year. And it’s no surprise that the full study is also the most downloaded PRG report.
Next-Generation Data Capture Emerges
2019 Air Cargo Roundtable: Volumes and pricing gathering speed
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Case Study: Enabling the Autonomous Supply Chain
During this webinar Nucleus Research and One Network will dissect a global company's strategy to leverage a multi-party network to enable the autonomous supply chain.
Register Today!
EDITORS' PICKS
35th Annual Salary Survey: Compensation matters more than ever
While job satisfaction remains the primary reason for today’s logistics managers to stay with one...
2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...

2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...