Description

This research service provides information about the industrial automation and process control market in the growing countries of Laos, Cambodia, and Myanmar. All 3 countries face numerous problems in their efforts toward industrialization. It discusses the major trends and the prevailing scenario across the 3 countries. It also explains the major drivers and challenges, besides other parameters.

One of the biggest problems faced by these countries is the lack of skilled workforce, resulting in a delay in technology transfer. However, companies have begun to realize the need to implement strategies that will result in a smooth transition by expanding activities locally. This also ensures that such companies are able to maintain a competitive edge, to better understand and implement technologies and, more importantly, to adapt to the varying needs of these countries.

A challenge faced by emerging countries such as Cambodia is the ability to maintain a competitive tax system. The risks are also significant. Redundancy is a major risk, as this implies the development or initiative would have taken place anyway. Furthermore, tax holidays encourage short-lived capital that may not remain in the country once the holiday expires. This further leads to lobbying for extensions and other consequences.

However, the benefits of tax incentives are also significant, as they contribute to the economic development by facilitating investments; the benefits are multifold. For instance, a temporary regime of tax incentives could attract investments into a developing country such as Laos or Cambodia, boost employment, and offer opportunities for re-training of the workforce.

There are several factors such as cyber security, investment capabilities, and customization that need to be understood before implementing automation solutions. This is because the requirements for each of these countries are different. In addition, as demands increase, there will be a need to have a more skilled workforce. With China's labor costs increasing, manufacturing companies are likely to look to other countries for investments.