Turkey v Asia and South East Asia

As a buyer, you may be investigating markets globally for your requirements. For buyers from developed or advanced economies, there are many choices around the world. Globally Sourceable is based in Turkey, and principally provides high value sourcing services from Turkey and regional neighbors, but we also work globally through our qualified partner network. Naturally, we would like you to look at Turkey first when considering where to make your purchasing agreements. When comparing the benefits of sourcing products from Turkey versus other emerging and low cost markets in South Asia and Southeast Asia, there are several key criteria to consider:

First, Cost: It is true that Turkey has a high cost of labor compared to other emerging markets in the South and South East Asian region, but it is also true that Turkey is more advanced than the majority of them. Turkey also has a more highly developed and diverse manufacturing sector than many, and a relatively well educated and trained workforce, with skills across all industrial and commercial sectors. Turkey has a relatively low corporate tax rate, which can make it an attractive destination for foreign investment. The Chinese Belt and Road project is slowly growing stronger along the old Silk road, which will bring further inward investment from countries along that route.

Second, Quality: Turkey has a good reputation for producing high-quality products, particularly in sectors such as textiles, where Turkey is a top global producer and exporter, automotive, where it operates many factories and assembly plants for global brands, and white goods, where Turkish manufacturers are the number one sellers in the European Union. This can be a significant benefit for companies looking to produce premium products. China is obviously the dominant player in all categories, but most countries in the region are competitive in at least one sector. India for mining and textiles, South Korea and Taiwan for high technology and defence, Indonesa, Malaysia and Vietnam for manufacturing, but they cannot always can match Turkey for quality and reliability.

Third, Location: Turkey's geographic location at the crossroads of Europe, Asia, and the Middle East makes it an attractive sourcing destination for companies looking to serve these markets. The country has invested significant sums of money in modern ports and airports, such as the huge shipping and container ports at Istanbul, Izmir, and the world's largest airport in Istanbul. Turkey has a well-developed transportation infrastructure, with plentiful regional airports, roads and rail networks linking producers to export points. Agricultural and petrochemical products flow through Turkey as a regional hub, while mining and textile production is a key production and export focus found in abundance. Many exports from the South and South East Asian regions cross the continent and enter Turkey on their way to Europe, which can often make it easier and more cost-effective to import your products from Turkey than directly from South and South East Asian markets. Turkey is the obvious choice from which to access the majority of what you need.

Fourth, Legal and regulatory environment: Turkey has a relatively stable political and economic environment, which can make it a more predictable and reliable sourcing destination than some other emerging markets. While many South and South East Asian countries have similar conditions, they often fail to comply with intellectual property rights, quality standards and ethical requirements. Additionally, Turkey is a member of the World Trade Organization and has signed free trade agreements with several countries, which can make it easier for companies to do business in the country.

Firth, Language and culture: Turkey has a relatively Westernized culture,with many top schools and universities giving entire courses in English, and with German and French being popular as languages to learn due to historical connections with migrant communities in those countries. Many Turkish business people speak English to a reasonable level, although this is mainly in the very largest cities and international businesses. This makes it competitive with the leading English speaking and broadly Western-friendly economies of India, Pakistan, Bangladesh, South Korea and the Philipines.

When considering sourcing from Turkey, it is important to weigh these factors against the potential benefits of sourcing from other emerging and low-cost markets in South Asia and Southeast Asia. Although many have lower labor costs and a large pool of potential suppliers, they also have individual negatives which may weigh against these. 

Ultimately, the decision will depend on your specific needs and the products you are looking to source. You should carefully evaluate your supply chain needs and the potential costs and benefits of sourcing from different markets before making a final decision.

In summary, Turkey offers a good combination of quality, location, and a predictable legal and regulatory environment, which make it an attractive destination for sourcing products. However, it also has a relatively high cost of labor compared to other emerging markets in the South and South East Asian region. It is important for you to weigh the pros and cons of sourcing from Turkey versus other emerging markets based on your specific needs and requirements.

At Globally Sourceable we believe that Turkey represents great value to our buyers, but we always maintain our connections and networks globally to offer the best solution to each buyer. Contact us now to start your next sourcing project.