For the second time in a row, China ranks first in the Asia Manufacturing Index by Dezan Shira & Associates.
China maintains its leadership despite significant shifts in its production landscape and traditional markets. The country’s industrial output remains robust, with export-oriented enterprises adapting to changes, including the electric vehicle (EV) sector.
China’s dominance as a global hub for efficient, high-quality manufacturing across various industries is still evident.
Vietnam takes the second spot in the ranking, delivering a consistent performance. It has emerged as a top destination for supply chain diversification, driven by its competitive labor costs and extensive network of free trade agreements.
After navigating political turbulence over the past three years, Vietnam now appears to have a stable government, further strengthening its position.
Alongside Vietnam, Malaysia (3rd) is also a prominent alternative with the ‘China +1’ strategy, offering viable options for companies seeking alternatives to manufacturing in China in Southeast Asia.
Malaysia’s costs may be higher than elsewhere in the region. However, its highly skilled workforce has made it a prime destination for higher-tech manufacturing, attracting significant investment, especially from Silicon Valley and China.
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