Western China, India and Southeast Asia will be the major low-cost global production bases in the next 15 to 20 years, according to a survey by research firm Transport Intelligence and logistics company Agility. Manufacturers have already begun to move to western China from the increasingly expensive eastern coastal areas, though poor infrastructure, especially roads, has impeded its potential, according to the survey.
“Developments of new roads and airports are underway, attempting to link this region with the eastern part of China, but it is too early to determine how effective these are,” it said.
China, the largest economy in the survey, retained its number one position among emerging economies as the most attractive investment market for logistics companies. India was in second place and Brazil was third.