New figures show foreign investment in China is falling as rising wages and costs force companies to search for new manufacturing bases.
Data shows that while investment in China is declining, other parts of Southeast Asia are picking up the slack.
Foreign direct investment in Thialand surged by around 63 per cent in 2012, and the spend in Indonesia also rose 27 per cent for the first nine months of last year.
According to The Wall Street Journal Coronet SpA, an Italian synthetic leather producer, is one of many companies now moving its manufacturing business to Vietnam to take advantage of lower costs.
The company has also made the move to be closer to buyers in the shoe and handbag business, which have already made the transition.