Indonesia, Vietnam and Thailand could all benefit from rising costs of production in China, Robert Outram of IAL Consultants told delegates at the ICIS polyurethane Chain Conference in Singapore in October.
Simon Robinson reports.
It is hard to get a good grip on what is happening in China, the dominant country in Asia, because it is hard to reconcile the country’s official statistics with the experience of companies operating on the ground in the country, Rob Outram, senior analyst at IAL, told delegates at the ICIS event in Singapore in October.
“Companies are just not corroborating the kind of growth rates or market sizes that we are seeing from the official figures,” Outram said. There is plenty of room for the PU industry to grow in Asia, he added. Comparing countries like Vietnam, Indonesia and China with countries like Germany, France and the rest of Europe, per capita consumption.
He said: “People talk very enthusiastically about growth in Asia and if you’re a big powerhouse like it is possible to capitalise on growth. A lot smaller companies are finding it very, very difficult to get that kind of growth. CEOs spend a lot of time explaining why they are not getting the growth of 15 to 18% or 20% growth that the numbers might suggest.”
“I think there needs to be a little bit of caution here,” Outram added.
There are a number of good reasons why it is hard to achieve headline growth levels said Outram, citing “multinationals…