In his Winning in Asia podcast, Michael Dunne, one of the foremost authorities on the Asia automotive industry has circled back to a particular recurring theme; To succeed in business, one needs to understand and have relationships at some level with local government. The geopolitical climate with China has industry re-thinking supply chain options for sourcing and manufacturing. With S.E. Asia becoming a de facto consideration this got us thinking it would be important to compile a list of top resources in countries where decision-makers might consider establishing contract manufacturing relationships. These seven—India, Indonesia, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam are hungry for new business and have programs and incentives (such as free trade zones) in place to encourage investment and bring production to their countries. Below is a preview of the information that can be found in the handbook – download the entire guide today!
In the Southeast Asia Manufacturing Alternatives Handbook, you will learn about:
- Various resources available from local governmental authorities related to trade, commerce, and industry
- Economic incentives that countries are offering for brands to relocate their production and operations
- Programs, agencies, and initiatives such as Free Trade Zones specific to each country
India has the poise, resources, and capability to rival the China export engine. As supply chains have shifted, the India contract manufacturing industry has gained momentum. Huge swaths of land have been cleared for the continued development of commercial manufacturing space. Government packages and strong economic incentives have made India a favorable destination for supply chain leaders.
Indonesia presents several contract manufacturing advantages when searching for a supply chain alternative to manufacturing in China. An abundance of cost-effective labor and increasing government support in the manufacturing sector has helped Indonesia position itself as an attractive option for supply chain leaders.
Malaysia is a location that cannot be ignored when considering outsourcing manufacturing to South East Asia. It is a nation that is primed for major growth in the near future with its prime infrastructure and business-friendly economic zones as contributing factors. Businesses and supply chain consultants are looking at Malaysia as a possible alternative to manufacturing in China.
The Philippines has the potential for major growth in the manufacturing sector. Advances in production and investment in new infrastructure have been key selling points. With virtually no language barrier supply chain leaders are finding it possible to get new projects launched with fewer details lost in translation.
Thailand is positioned for growth as the need for resilient, alternate supply chains increases. The implementation of government initiatives and the establishment of special economic zones along with a skilled workforce make Thailand quite interesting and attractive.
Taiwan has seen a steady influx of new business as they have always been known for high precision-high tech manufacturing. While Taiwan has not had the reputation for lowest cost labor, it leads in high tolerance parts such as those found in automotive, aviation, and other engine parts.
Vietnam is a country that has been a popular alternative to manufacturing in China for many years and signs suggest that the market will continue to grow. The Vietnamese manufacturing sector has competitive production capabilities to meet a variety of manufacturing needs and its reliability makes it an attractive option for supply chain leaders looking to fortify their supply chains.
Learn more about manufacturing alternatives in Southeast Asia with our handbook – download it today!