Asia is an emerging market with an expected growth rate of about 5.3%, highest among Latin America, Eastern Europe, North America
and Western Europe. This market is slowly and slowly becoming the hub in Chemical and manufacturing industry in general. Asia has a
diverse portfolio of chemicals from Petrochemicals to basic chemicals to inorganic chemicals.
Regions like Middle East enjoys the world's largest Petrochemical reserves, South East Asia's huge palm oil production, China's low cost
manufacturing and abundance in raw material for manufacturing various chemicals etc makes this region highly potent as an emerging
market, apart from these conditions stable political scenario and willingness of government to help this industry to grow many folds.
One of the fastest growing economy in Asia along with India and China. This economic growth has been primarily because of the huge
oil and natural gas reserves in the region.
The oil exporters comprise 12 countries: the six countries of the Gulf Cooperation Council (GCC—Bahrain, Kuwait, Oman, Qatar, Saudi
Arabia, and United Arab Emirates) and Algeria, Iran, Iraq, Libya, Sudan, and Yemen. Together, they account for 65 percent of global oil
reserves and 45 percent of natural gas reserves. The countries are mainly exporters of oil, gas, and refined products, with oil and gas
contributing about 50 percent to GDP and 80 percent to revenue.
For three decades after the 1949 revolution, China followed a policy of socialist economic development based primarily on the centrally
directed allocation of resources through administrative means. China's economy during the past 30 years has changed from a centrally
planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector
and is a major player in the global economy. China's real GDP rate accounts to 9.1% (2009 est) which accounts to be the worlds 4th
largest. With a major industry focus on mining and ore processing, iron, steel etc. they are huge in manufacturing various products in consumer products, chemicals, commercial products etc. because of low manufacturing cost, labor cost and infrastructure cost.
India is developing into an open-market economy, yet traces of its past policies remain. Economic liberalization,
including reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the
country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses
traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Service sector is the biggest contributor in the GDP in case of India and has been continuously on a role, it
accounts for about 54.6% of the 7.4% GDP of the Nation with Industrial sector having a share of about 28.2%. major
Industries comprises of Chemicals, Textiles, Food Processing, Pharmaceutical etc.
An industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP growth to slow to 6.5%
in 2009, still the second highest growth in the world among major economies. India escaped the brunt of the global
financial crisis because of cautious banking policies and a relatively low dependence on exports for growth. Domestic
demand, driven by purchases of consumer durables and automobiles, has re-emerged as a key driver of growth, as
exports have fallen since the global crisis started.
Since the 1960s, South Korea has achieved an incredible record of growth and global integration to become a high-tech
industrialized economy. Four decades ago, GDP per capita was comparable with levels in the poorer countries of Africa
and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's
twenty largest economies. Initially, a system of close government and business ties, including directed credit and import
restrictions, made this success possible. The government promoted the import of raw materials and technology at the
expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of
1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and
massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea
adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports.
Growth moderated to about 4-5% annually between 2003 and 2007. With the global economic downturn in late 2008,
South Korean GDP growth slowed to 2.2% in 2008 and declined 0.2% in 2009. In the third quarter of 2009, the economy
began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy. The South
Korean economy's long term challenges include a rapidly aging population, inflexible labor market, and over
dependence on manufacturing exports to drive economic growth.
South East Asia
Southeast Asia consists of two geographic regions: Mainland Southeast Asia, also known as Indochina, comprises Cambodia,
Laos,Myanmar (formerly Burma), Thailand, Vietnam and Peninsular Malaysia, and Maritime Southeast Asia comprises Brunei, East
Malaysia, East Timor, Indonesia, the Philippines, and Singapore. Malaysia, Thailand, Indonesia are the highest growing country among
the south east nations . Malaysia and Indonesia are the oleo-chemicals hub of world in terms of Palm oil production . Malaysia Malaysia is
the 25th country in terms of Crude Oil reserve .In Indonesia Petrochemicals is one of ten core industry clusters.The investment in chemical
and pharmaceutical industries reached $1.3 billion and $589.5 million in 2005 and 2006 respectively. Thailand is the hub of Pterochemical
industry in South East Asia . From January to October of 2009, Thailand’s international trade had a total value of US$124.1 billion and an
import value of US$106.6 billion, with its trade surplus hitting US$17.5 billion. In Philippines 2006, nearly 38% of output (excluding
petrochemicals) valued at over US$ 674 million was exported; imports for the period were valued at US$2.738 billion according to
government figures issued in 2008.