Association of Southeast Asian Nations (ASEAN): An Upcoming Manufacturing Powerhouse
As the global geopolitical landscape becomes increasingly uncertain, volatile and complex, corporates are starting to prioritize diversification and enhancing the resilience of their existing supply chains to absorb short and long-term risks.
With the majority of manufacturing currently concentrated in the Chinese mainland, ASEAN countries have a significant role to play as they are likely to be a natural choice for many corporates opting for a diversification strategy, with physical proximity to the Chinese mainland as well as similar cost advantages and favorable demographics.
Overview of the Key Drivers in the Shift toward ASEAN Countries:
- Geographical proximity to the Chinese mainland
- Favorable factors of production
- Government initiatives and incentives
- Competitive corporate tax rates
- Extensive network of free trade agreements
- Ease of doing business
- Infrastructure boost
In this report, A&M’s Southeast Asia and Australia (SEAA) performance improvement experts investigate the key drivers in the shift in manufacturing activity towards ASEAN countries and take a deep dive into what some of these ASEAN countries are doing to bolster their competitiveness and attract investors.
