One trick pony and unthinking ponies

In the 1970s, many Asean countries were manufacturing bases for western manufacturers making shoes, apparels, gadgets, PCBs, computers etc etc. In the 70s, China was still as poor as a church mouse, no industries, no foreign manufacturers in China. In the 80s, China started to open its doors to foreign manufacturers.
 
Today, China is the factory of the world, leapfrogging itself out of the Asean league and into making new products and improving on them. The Asean countries are still doing the same thing, some still making shoes, apparels and little gadgets.
 
What is the difference? Why is China running ahead and away, becoming a manufacturing powerhouse while the Asean countries that were ahead in the 1970s have lagged behind and still doing the same little things all over and over again?
 
The answer, many of the factories in Asean are very happy with the orders to make more shoes, more shirts or more of the same thing, to fill up the orders. They are contented just to be a supplier, to make and deliver products ordered. China and South Korea did something more. They copied the same successful formula of Japan, reverse engineering, to improve on the products and to make them at cheaper cost. They were able to add value to the products by lowering cost and improving productivity and quality.
 
The Asean states just continued to make shoes and products designed by he original manufacturers, nothing more, nothing less. No need to think of improving quality and productivity, no need to innovate or wanting to develop or build new products. Just be subcontractors, not OEMs or ODMs.
So, while China moves on to the next level, the Asean little factories remain stagnant, remain where they were 50 years ago, doing the same old things, making the same old products from the same production lines.
 
This is the difference and why China turns itself from a poor agrarian economy into a huge manufacturing base for the world and the Asean countries are still where they are, like before, unchanging. They are not only one trick ponies but unthinking ponies, unable to innovate and move to a higher level of manufacturing. Bring in the big MNCs and do as told, good enough, just provide the cheap labour and earn wages.
 
Japan is also losing out thought they were constantly innovating, losing out on cost. What the Japanese can do, the South Koreans and Chinese can do just as well and better and cheaper. Period. There is on competition. Asean countries are even worst, lagging further and further behind and unable to catch up with the change.


PS. Some Asean countries are still thinking that China is a backward country and wanting to teach China how to do business and how to move up the economic and technology ladder.

And Happy 2017 to everyone.