Outlook on Light Manufacturing in China: October 2015

October 13, 2015 Posted by China Briefing Reading Time: 3 minutes

The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.

Guangdong: The provincial government recently announced its plan echoing the central government’s strategy to focus on securing advanced equipment for manufacturing industries, highlighting its determination for industrial transformation and upgrade. A lack of future government support could increase the level of challenges facing Guangdong’s shoe manufacturers and further undermine their confidence.

Zhejiang: The provincial government recently announced a plan to reset the benchmark ratio of employer’s payment to employee’s work injury insurance for 8 industries. Under the new plan effective October 1, the contribution ratio for employers as a percentage of the employee’s gross monthly wage in the following industries are:

Industry Type 1: Public organizations and finance industry – 0.2-0.3%
Industry Type 2: Services industries – 0.2-0.6%
Industry Type 3: Food manufacturing, telecommunications – 0.35-1.05%
Industry Type 4: Textile, automobile, hardware manufacturing – 0.45-1.35%
Industry Type 5: Forestry, transportation, paper production – 0.55-1.65%
Industry Type 6: Fishery, chemical engineering, construction – 0.65-1.95%
Industry Type 7: Oil and gas mining – 0.8-2.4%
Industry Type 8: Coal mining – 0.95-2.85%

Fujian: Nothing to report.

About Us

Cascade Asia Advisors is a boutique advisory firm focused on Southeast Asia. They help businesses anticipate risk and make better decisions using forward-looking, localized intelligence. For information about developments mentioned in this report, please contact them at info@cascadeasia.com.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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