ASEAN nations see manufacturing influx as firms relocate from China amid trade tensions, with Thailand and Vietnam emerging as key beneficiaries.
The latest round of US tariffs targeting Chinese electric vehicles and semiconductors has accelerated supply chain diversification across Asia, with Powerlogic’s new $200 million facility in Thailand exemplifying the regional shift. Industry analysts report at least 47 major manufacturers have announced relocation plans since Q1 2025.
Manufacturing exodus gathers pace
According to Thailand’s Board of Investment, foreign direct investment in electronics manufacturing grew 38% year-over-year in Q2 2025. Powerlogic CEO Chen Wei stated in a press conference last week: ‘Our new Rayong plant will employ 2,500 workers and produce circuit boards previously made in Guangdong.’
The company joins 14 other automotive suppliers establishing Thai operations this year, taking advantage of the country’s existing EV infrastructure and free trade agreements with both Western and Asian markets.
Vietnam’s infrastructure challenge
While Vietnam has attracted $7.2 billion in new manufacturing investments according to government data, congestion at Cat Lai port highlights growing pains. ‘We’re seeing 14-day delays for container shipments that took 5 days in 2024,’ noted logistics manager Nguyen Thanh from Saigon New Port.
The government has fast-tracked expansion of Lach Huyen port in Haiphong, with Phase 1 completion expected by Q3 2026. Meanwhile, Taiwanese firm Machvision acquired three local component suppliers last month to secure production capacity.
Long-term implications
JP Morgan’s Asia Pacific Supply Chain Index shows regional self-sufficiency in electronics components has reached 63%, up from 51% in 2023. However, analysts warn that fragmented production could add 3-5% to consumer electronics costs in Western markets by 2026.
As China’s Commerce Minister noted in a recent policy paper: ‘The era of hyper-globalization has ended. Resilient regional networks are the new paradigm.’
