Ironically that's true in many places in Asia. They pay way better than Europe with a cheaper cost of living and less taxes too.

It reminds me of a friend of mine that had his ex boss establishing a company in Ukraine. Initially the developers' cost was cheaper if compared to the other parts in Europe, then many companies started to move one of their office there till they reach the point that they had one of the best salaries in Europe (compared to purchase parity and cost of living) due to the high job offer.