As we are moving toward the end of 2018, economists and investors are trying to analyze and understand the trends in the Asian Manufacturing sector for the year 2019. Asia has shown remarkable improvement in the year 2018, where not only China, but also India, Taiwan, Thailand and Vietnam have emerged as the top contributors in the manufacturing sector.

What’s Contributing to the Growth of China and India Manufacturing?

China and India have come up with many policies to improve the manufacturing sector. These policy reforms include skill-based education, connectivity and infrastructure, Foreign Direct Investments, use of land and resources, government reforms, trade, innovation, and green financing. All these policy reforms and national development goals are proving to be major contributors, which suggests further growth trends while moving into 2019.

According to some econometric models, China will see substantial growth of around 5% in their minimum wage rate. Even countries like Vietnam have decided to raise the rate of minimum wage by around 5% by the start of the new year. However, since the inflation rates are not so high in the Asian countries, the rise in the minimum wage rate should not drastically impact the growth in the manufacturing sector.

How Manufacturing Trends Will Change by 2022

Some of the forecasts have shown that China will soon overtake the United States in the apparel manufacturing market and become number one in the year 2019. While the apparel market in the United States has grown only by 3% since the year 2014, the apparel market in China has shown monumental growth of 25%.

Asian countries are now able to communicate more effectively on the international level, because of the rapid expansion of broadcasting networks, mobile devices, and the digital economy. This growth in digitalization has also presented a lot of opportunities in the reshaping of the manufacturing sector.

The projection of growth and expansion in Asia shows further expansion in the year 2019, particularly in China, India, and some other south-eastern countries. While India is facing a bit of a crisis due to some of the drastic economic reforms including the demonetization of currencies and the introduction of GST, China seems to have rebounded quite remarkably with higher trade and robust domestic consumption. The growth is projected to be consistent and is expected to maintain its momentum to the year 2022.

In the past, China had focused more on increasing manufacturing volume, rather than giving more attention to the technology and quality of output. Now with a proper foothold in the world market, they are focusing more on providing top quality and high-tech outputs in the manufacturing sector.

Since they have clearly crossed the learning curve in International Manufacturing and distribution, they are designing policies to improve overall quality and technology, in order to achieve better consumer satisfaction globally.


Countries like the United States and European countries are turning toward China for low-cost contract manufacturing. Manufacturing partners in China are now working actively with teams of both Chinese and American employees. This kind of integrity-driven partnership allows for better transparency, while managing the high costs at the same time. If you are planning to move your product’s manufacturing to Asian countries in the year 2019 in order to cut on costs, then China is surely going to be your best bet.

Contact Us