South East Asia destinations attract China manufacturing supply chain relocation

By Staff

AmCham China conducted a survey among 430 companies on the effects of trade issues and tensions escalating between China and the US found the following:

60.6% of survey respondent companies that participated were from manufacturing-related industries, 25.8% in services, 5.5% in retail and distribution and 8.1% were from other industries.

Preferred destinations for relocation of China-based manufacturing facilities (%)

South East (SE) Asia came forward as the biggest beneficiary of relocations in the supply chains out from China.

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OEMs interested in obtaining knowledge for enhancing their ASEAN supply chain strategy with non-China contract electronics can request a list of non-China EMS provider locations and capabilities here.

EMS providers are looking at expanding and creating China-alternative, manufacturing bases within the existing technology supply chain, which includes Taiwan, ASEAN, India and near-shore locations like Mexico.

Looking out mid- to long-term, EMS providers are looking at lower labor-cost locations like ASEAN according to a research team at J.P. Morgan.

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