Chinese manufacturing too costly for Asda

Asda is exploring shifting part of its manufacturing base away from China because of the soaring cost of doing business there.  Andy  Bond, Asda's chief executive, said the group was looking at diverting part of its sourcing activities from China and into lower-cost emerging markets such as Vietnam. "In common with other retailers we are always looking to where we source from, and Vietnam is one of the countries we are looking to," said Bond.

Prices in China have risen sharply over recent months due to surging wage inflation in the country's manufacturing hubs and rising commodity prices. Retailers claim that non-food inflation out of China is moving into low double digits.