How to transition your supply chain out of China?
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Glovendor’s ASEAN & East Asia Procurement Network
400+
Product & Shipping Vendors across 6 Verticals
30+
Sourcing Agents across 7 Countries
99%
Project Success Rate
Top Destinations
Vietnam
Japan
Indonesia
Taiwan
Thailand
Malaysia
South Korea
Overview
Southeast Asia gains increasingly more attention as foreign companies try to diversify manufacturing activities from China. By 2030, the manufacturing industry in Southeast Asia could generate up to $600 billion USD a year, according to the global consulting firm Boston Consulting Group (BCG). For decades, the Association of Southeast Asian Nations (ASEAN) has attracted foreign manufacturers seeking low-wage workers.
Trends
With the US China trade war and introduction of the 301 tariffs, many companies are moving to the ASEAN region.
Many textile companies continue to shift their production to Vietnam.
ASEAN continues to grow its electronics manufacturing capabilities.
Benefits
Foreign investment in the manufacturing space is pouring in
Great alternative to China for electronics, furniture, and textile products
Many international free trade agreements
Many vendors in Malaysia, Indonesia, Philippines, Singapore, Thailand etc. are fluent in English
Young workforce
Risks
Political instability in the South China Sea may cause supply chain disruptions in East Asia
Heavy reliance on Chinese raw materials, components and subcomponents
More expensive than China
Not the same level of specialization for all products
Less mature supply chain
High MOQs in most countries
Top Products
Cosmetics
Agricultural Products
Textiles
Furniture
Automobiles
Electronics
Petrochemical Products
Verdict
ASEAN and East Asia can be a great manufacturing destination for you if you have MOQ flexibility and your products are in the industries that this region specializes in like textiles, furniture, electronics etc. The friendly trade treaties also make it a tax friendly region.
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How to find the right manufacturing partner?
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© 2024 Glovender Corp. All rights reserved