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The trend towards moving into South East Asian manufacturing bases is more about extending operations into places like Vietnam, not necessarily moving out of China.
From its small base, Vietnam’s contract manufacturing is expected to surge ahead at a CAGR of 120% between 2006 and 2011, compared to 9% for Thailand, 7% for Singapore and 8% for Malaysia. Responsible for about 50% of the world’s electronics contract manufacturing, China will continue to dominate while South East Asian countries are expected to take a higher share of future investments.
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