ASEAN & East Asia
: The rising star in the
manufacturing world
South East Asia is on the rise and quickly becoming a favorite
manufacturing destination.
Glovendor's journey so far
Glovendor’s ASEAN & East Asia Procurement Network
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
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.