The WSJ notes that China still has some infrastructure advantages, however:
Southeast Asia also faces enormous hurdles, including underdeveloped legal systems and problems with corruption. There is also the possibility that costs could spiral more than expected as workers learn more about wage gains in China and press for raises.
This growing disparity has prompted many companies to reconsider where they base their production facilities. Recently, Ford Motor Co. said it will build a $450 million car factory in Thailand, its first wholly owned plant in the country, despite political instability.
In the longer-term, this is an opportunity for Thailand to gradually increase the minimum wage for factory workers, focus on improving productivity and provide greater transparency on environmental issues which have stalled industrial projects in the Eastern Seaboard.
