China again in the spotlight for product safety problems. Ethical violations remain a top concern as factory audit scores show no improvement. Vietnam predicted to have explosive export growth in 2016. The environmental situation in China remains grave.

1. 2015 ENDS WITH EXPLODING HOVERBOARDS
AND GROWING ETHICAL CONCERNS
ASIAINSPECTION Q1 BAROMETER

2. HONG KONG, JANUARY 7, 2016
ASIAINSPECTION (AI)
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER
THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN
today announces its 2016 Q1 Barometer, a quarterly synopsis
on outsourced manufacturing and the quality control services industry.

3. CHINA STILL IN THE SPOTLIGHT
FOR PRODUCT SAFETY PROBLEMS
China made headlines in 2015 for product safety issues, such as exploding
hoverboards. Together with Hong Kong, it accounted for 60% of all consumer
goods recalls in the EU in Q3 2015.

4. CHINA’S QUALITY ISSUES CONTINUE TO
RAISE INTERNATIONAL CONCERN
For 2015, AI data shows nearly one in three product inspections
performed in Chinese factories have failed for exceeding the allowed
level of defects.

5. Pakistan
+13%
+11%
+9%
+4%
Thailand Vietnam Cambodia
2015 Inspection Failure Rate Growth
OTHER LOW MANUFACTURING COST
COUNTRIES SEE QUALITY ISSUES RISE

6. Q4 2015 CONFIRMS GROWING CONCERNS IN
SUPPLY CHAIN ETHICAL ISSUES
Thailand remains in the spotlight under more accusations of modern slavery.
A recent investigation revealed extensive use of slave labor in the peeling of
shrimp only one step removed from major Thai seafood exporters.

7. TURKEY NAMED AMONG THE WORST
FOR LABOR RIGHTS AND WORKER SAFETY
The overall safety situation in the country is not improving,
with the death toll reaching 1593 in 11 months of 2015.

8. GROWING ETHICAL CONCERNS AS FACTORY
AUDIT SCORES SHOWS NO IMPROVEMENT
Cambodia saw its average factory score decrease by more than 2 points
(out of 10) in Q4 2015 vs. 2014, and Pakistan, Indonesia, and Vietnam also
saw compliance drop.

9. Currently pollution in China accounts for 17% of the nation’s annual death toll,
killing more than 1.5 million people every year. Combined with the heavy
water pollution - 60% of ground water not fit for human contact.
THE ENVIRONMENTAL SITUATION IN CHINA
REMAINS VERY GRAVE

10. Cambodia
+129% +119% +114% +108%
Thailand Peru Vietnam
2015 Inspection Growth
GLOBAL TRADE: A NEW START IN 2016?
Experts anticipate a global trade rebound in south-to-south exchanges which
has been reflected in increased inspections by AI in 2015.

11. VIETNAM PREDICATED TO BE A 2016 WINNER
While already among the US’s top ten trading partners, it is predicted that
when the Trans Pacific Partnership takes effect, Vietnam will see explosive
growth in exports - some reports estimate by +50%.

12. AsiaInspection (AI), a leading global quality control
and compliance service provider
that partners with Brands, Retailers and Importers around the world
to secure, manage and optimize their supply chain.
ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™

13. ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™
DEDICATED ACCOUNT MANAGER
A supply chain partner
offering advice on your specific needs
INDUSTRY LEADING TURNAROUND
Onsite within 48 hours.
Reports the same day 80% of the time
COMPREHENSIVE ONLINE MANAGEMENT
Use your real-time dashboard
to benchmark and identify
your high performing suppliers
FLEXIBLE
Cancel or modify orders up to 4pm
the day before the inspection for free
PRODUCT EXPERTISE
Hundreds of off-the-shelf customizable
product specific checklists
TRUSTED AND TRULY INDEPENDENT
100% QC. AI is not involved in sourcing
and protects your factory information
MOBILE
Book, check reports
and make decisions on the go
ALL-INCLUSIVE PRICING
Easy to budget. No hidden costs

14. FOOTNOTES
1. The Guardian. UK retailers recall hoverboards following government advice. December 16, 2015.
http://www.theguardian.com/technology/2015/dec/16/uk-retailers-recall-hoverboards-consumer-protection-act
2. Retail Times. Stericycle Index reveals 60% of all EU consumer product recalls last quarter originated in China and Hong Kong. November 20, 2015.
http://www.retailtimes.co.uk/stericycle-index-reveals-60-eu-consumer-product-recalls-last-quarter-originated-china-hong-kong/
3. The Guardian. Shrimp sold by global supermarkets is peeled by slave labourers in Thailand. Decemebr 14, 2015.
http://www.theguardian.com/global-development/2015/dec/14/shrimp-sold-by-global-supermarkets-is-peeled-by-slave-labourers-in-thailand
4. Todays Zaman. Turkey named among worst countries for workers. June 25, 2015.
http://www.todayszaman.com/anasayfa_turkey-named-among-worst-countries-for-workers_391833.html
5. Todays Zaman. 1,593 Turkish workers die on job in first 11 months of 2015. December 02, 2015.
http://www.todayszaman.com/business_1593-turkish-workers-die-on-job-in-first-11-months-of-2015_405893.html
6. Time. China Issues ‘Red Alert’ Over Devastating Air Pollution. December 19, 2015.
http://time.com/4155365/china-red-alert-smog/
7. Reuters. RPT-More than 60 pct of China’s underground water rated unfit for human contact. June 4, 2015.
http://www.reuters.com/article/china-environment-water-idUSL3N0YQ3CV20150604
8. Trade and Export Finance. Global Trade Set For Bumper 2016, Says HSBC. December 8, 2015.
http://www.txfnews.com/News/Article/5374/Global-trade-set-for-bumper-2016-says-HSBC
9. Fibre2Fashion. ‘TPP may boost Vietnam apparel export by 50% in 10 years.’ December 7, 2015.
http://www.fibre2fashion.com/news/apparel-news/-tpp-may-boost-vietnam-apparel-export-by-50-in-10-years--176275-newsdetails.htm