ASIA'S NEW STRENGTHS

As external demand and traditional advantages in labor and energy resources will ultimately fade away, emerging markets should foster new growth strengths in developing the manufacturing sector, industrial insiders suggested.

In the short term, the Asian manufacturing sector still has certain advantages with labor costs and raw materials, but in the long run these edges will change factors such as strong market demand and full-fledged investment environment, Luo said.

Low cost used to be a major attraction, but global manufacturers are attaching more importance on integrated business solutions, said Jean-Pascal Tricoire, president and chief executive officer of Schneider Electric.

"Low cost is not the primary reason that we come to China ...we are attracted because of its huge market, mature industrial network and high competence of talents, which will help design and make products tailored to local market demands," Tricoire said.

Tricoire said the business for manufacturing today tends to assume a model of making your targeted market the place where you can create and produce as well, thus Asian countries should focus on creating a more developed supply network.

Cooperation is another key to increasing the competitiveness of Asian manufacturing. To shift to a new growth model, Asian countries need to cooperate closely, making use of the region's rich resource in talent, said Yoon-woo.

He said Asian manufacturers could join hands in technology, research, and industrial standardization, and fully explore their respective advantages and market potential, to become leaders in such sectors as energy and nanotechnology.

Moreover, innovative ideas are the pivotal issue for emerging economies to keep a competitive edge in manufacturing, Li said, adding that Apple's products would not be a hit if they hadn't perfectly combined technology with art.

Shinji Fukukawa, chairman of the Machine Industry Memorial Foundation, shared Lin's views, saying that Asian countries should direct innovation in three aspects: developing a greener economy, innovating lifestyles, and combining art with technology.

"I believe combining culture and industry will open a new stage for products made in Asia," he said.

The three-day annual conference of the Boao Forum started on Sunday in Boao, a scenic town in south China's island province of Hainan. It adopted the theme of "Asia in the Changing World: Moving toward Sound and Sustainable Development" this year.