Makalot may turn to Indonesia due to rising labour costs in Vietnam
28/06/2019
The company’s chairman, Frank Chou, told local media that it plans to increase the output of its manufacturing plants in Indonesia by 15% next year. He added that it expects the country to be its largest manufacturing site in the coming years.
According to figures he quoted, Vietnam was Makalot’s largest production base in 2018, representing 37% of its total output. Indonesia was next with 33%, followed by Cambodia with 20%.
Mr Choi said that despite Vietnam offering several advantages, such as shorter shipping time to major markets, close proximity to sources of material and lower tariffs on products, the fact that labour costs have been rising in the last few years has prompted a change of strategy.
It will continue to invest in the country, however, as the ongoing trade war between the US and China has helped it secure orders from important sports clothing groups.
Share this story:
