AsiaInspection Q3 Barometer: Southeast Asia Sees Staggering Growth, Food Violations Continue
SOUTHEAST ASIA SEES STAGGERING
GROWTH, FOOD VIOLATIONS CONTINUE
ASIAINSPECTION Q3 BAROMETER
HONG KONG, JULY 8, 2015
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER
THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN,
today announces its 2015 Q3 Barometer, a quarterly synopsis
on outsourced manufacturing and the quality control services industry.
While the economy of China may be growing
at its slowest pace in six years,
GLOBAL BRANDS ARE READILY
EXPANDING THEIR SUPPLY CHAINS
TO OTHER LOW-COST DESTINATIONS IN ASIA.
GROWTH WAS STAGGERING IN NEARLY EVERY
OTHER SOUTHEAST ASIAN COUNTRY.
The overall trend in Southeast Asia,
and the rate of growth outside of China is unprecedented,
While the upward trend has been present there in recent years,
AI is seeing demand like never before.
Two years ago, China represented 91% of inspections,
and today its share is 78%.
said Sebastien Breteau, AI CEO.
Inspections in Cambodia grew at an unprecedented +227% year over year;
and even the less known
Pakistan showed a +47% increase.
MYANMAR’S GARMENT INDUSTRY CONTINUES EXPANDING FAST.
In the last two years, 100,000 new workplaces have been created in the garment sector.
Foreign investment increased from US$ 300 million to US$ 5 billion
between 2009 and 2015, an annual growth rate of 75.5%. 1
RELAXED TRADE BARRIERS FUEL
GROWTH IN MYANMAR
Acceptable quality tolerances failed in 22% of inspection.
This was better than that of Cambodia at 25%, India 28%, China 32% & Bangladesh 37%.
This is likely a reflection of recent investment, and hence new infrastructure,
coupled with strict oversight as buyers err on the side of caution.
VIETNAM – GROWTH CONTINUES
WHILE ETHICAL SCORES IMPROVE
Vietnam is now the world’s 4th
largest garment exporter,2
and is working to increase
its share of exports with major expansion plans for its garment industry and several
free trade agreements.
Performed Inspections Growth
Average Ethical Audit Score
(H1 2014 -H1 2015)
Some of that improvement can be attributed to the
RECENT PROGRESS MADE IN VIETNAM’S LABOR LAWS,
better worker representation,3
and efforts to increase safety awareness.4
LACK OF FOOD SAFETY REGULATIONS
2.2 MILLION PEOPLE DIE EVERY YEAR
AS A RESULT OF FOOD AND WATERBORNE DISEASES.
The scale and complexity of food supply chains greatly increase the risk of contamination
and spread of disease, with enormous health and economic consequences.
The importance of food safety regulations was
once again thrown into sharp contrast by the recent food scandal, in which
800 TONS OF SMUGGLED FROZEN MEAT
WAS CONFISCATED IN CHINA.
China’s revised Food Safety Law, to come into effect this October,
introduces tighter production, shipping, and storage requirements,
as well as increased penalties for violations.
Performed Services Growth
AsiaFoodInspection Inspection Failure Rate
(Q1 2015 vs Q2 2015)
+49% 41% 37%
Environmental concerns are becoming increasing prominent as countries
adopt and enforce more stringent environmental regulations.
SOUTHEAST ASIA TIGHTENS
India closes 900 textile factories 5
Vietnam rejected a US$ 200 million proposal deeming it,
“environmentally unsound” 6
China authorities warn of the imminent crackdown 7
The plan will require factories to reduce emissions
and improve water consumption efficiency.
In addition to that, under the Environmental Protection Law that went into effect in 2015,
POLLUTING BUSINESSES FACE HIGHER FINES AND JAIL TIME.
Chinese environmental authorities warn of the imminent crackdown
on illegal discharges and falsification of monitoring data. 8
ENVIRONMENTAL AUDIT PROGRAMS TO HELP BRANDS TO ASSESS
THEIR ENVIRONMENTAL FOOTPRINT WORLDWIDE.
AsiaInspection (AI), a leading global quality control
and compliance service provider
that partners with Brands, Retailers and Importers around the world
to secure, manage and optimize their supply chain.
YOUR EYES IN THE FACTORY!™
With unique web-based quality control management,
AI OFFERS PRODUCT INSPECTION, SUPPLIER AUDIT PROGRAMS
AND LABORATORY TESTING SERVICES
for more than 4,000 clients worldwide.
The 2015 Q2 Barometer is a
QUARTERLY SYNOPSIS ON OUTSOURCED MANUFACTURING
AND THE QUALITY CONTROL SERVICES PERFORMED BY AI EACH YEAR
(product inspections, supplier audit programs and laboratory testing).
YOUR EYES IN THE FACTORY!™
DEDICATED ACCOUNT MANAGER
A supply chain partner
offering advice on your specific needs
INDUSTRY LEADING TURNAROUND
Onsite within 48 hours.
Reports the same day 80% of the time
COMPREHENSIVE ONLINE MANAGEMENT
Use your real-time dashboard
to benchmark and identify
your high performing suppliers
Cancel or modify orders up to 4pm
the day before the inspection for free
Hundreds of off-the-shelf customizable
product specific checklists
TRUSTED AND TRULY INDEPENDENT
100% QC. AI is not involved in sourcing
and protects your factory information
Book, check reports
and make decisions on the go
Easy to budget. No hidden costs