Report on retail sourcing from solutions provider CBX Software cites PMI index and quality control inspection data as indicators the Southeast Asian nations’ outputs are growing.
Sourcing of goods in Vietnam and Myanmar is beginning to erode China’s share of global sourcing, according to a monthly Retailer Sourcing Report compiled by the sourcing solutions provider CBX Software.
The report, a compendium of economic indicators, country level data, and freight rate information, pointed to evidence that China’s Southeast Asia neighbors have rising output through March.
“In terms of global inspections performed, from Q1 2014 to Q1 2015, China’s share in percentage dropped by 12 points,” the report said, citing information from AsiaInspection, a provider of quality control inspection services. “According to the latest Purchasing Managers’ Index for manufacturing, Vietnam rose in both output and new orders. While U.S. imports from China in January were down for the first time since 2008, Vietnam became the biggest ASEAN exporter to the U.S. Meanwhile, Myanmar’s garment industry has seen significant growth, increasing by $300 million in the past year, and has doubled in less than three years.”
Overall, the report noted that global emerging markets entered 2015 on relatively weak footing, a trend which has continued in the second quarter.
“Notable exceptions are Poland, Czech Republic and Mexico, which may indicate a trend towards near shoring,” the report said. “In Asia, China’s manufacturing continued its moderate decline which along with low oil and commodity prices and a strong U.S. dollar are having a wide impact on global consumption and manufacturing.”
Sourcing report finds Vietnam, Myanmar on the rise
