Manufacturing Moving Out Of China | 5 Alternatives Countries

Manufacturing in INDIA vs CHINA

With the iPhone maker Apple and chipmakers eyeing its vast land and young population, India is attempting to unseat China in higher-end manufacturing.
On December 12, 2012, an Indian employee works on an air conditioning unit at the Panasonic 'eco ideas' factory in Jhajjar, Haryana.
India has a large land area and a young population. Photographer: Sajjad Hussain/AFP/Getty Images
India is a logical alternative to China as the world's factory, thanks to its vast land and large, young population.

According to a July report from the UN Department of Economic and Social Affairs, India will overtake China as the world's most populous country in 2023.

Manufacturing in VIETNAM vs CHINA

Since 1986, Vietnam has been undergoing rapid economic reform, which has resulted in significant returns.
Garment workers at work in a factory in Hanoi, Vietnam.
Workers in a garment factory in Hanoi, Vietnam. AFP / Manan Vatsyayana
Vietnam, like China, has been undergoing rapid economic reform as a communist country since 1986.

The reforms have produced results, propelling Vietnam from "one of the world's poorest nations to a middle-income economy in one generation," according to a November post by the World Bank.


Manufacturing in THAILAND vs CHINA

Between 2020 and 2021, Thailand's FDI increased threefold.
Natawut Lorboon works at the Dunan Metals Thailand Co., Ltd. production line in the Thai-Chinese Rayong industrial zone in Rayong Province, Thailand, on November 8, 2022.
Thailand is an important auto and electronics manufacturing center. Getty Images/Rachen Sageamsak/Xinhua
Thailand, the second-largest economy in Southeast Asia, has been moving up the value chain in manufacturing and is now a production hub for car parts, vehicles, and electronics, with multinationals such as Sony and Sharp establishing operations there.

Sony announced in 2019 that it would close its Beijing smartphone plant to cut costs and relocate some production to Thailand. Sharp announced the same year that it would relocate some of its printer production to Thailand due to the trade war between the United States and China.

Manufacturing in BANGLADESH vs CHINA

The relocation of parts of the supply chain away from China has already been beneficial to Bangladesh. It now desires a larger portion of the overall pie.
Women in Bangladesh who work in the garment industry.
Bangladesh is home to a significant portion of the world's garment industry. The image was provided by Mustasinur Rahman Alvi/Eyepix Group/Future Publishing and was sourced from Getty Images.
Even before the COVID-19 lockdowns crippled China's manufacturing sector, Bangladesh was already rising to prominence as a manufacturing powerhouse in the garment industry.

The rise of Bangladesh was primarily a result of rising labor costs in China, which occurred before Trump was elected president.

The rise of Bangladesh was primarily a result of rising labor costs in China, which occurred before Trump was elected president.


Manufacturing in MALAYSIA vs CHINA

Malaysia has been looking for opportunities arising from companies shifting away from China for many years.
At the Coca-Cola bottling plant in Nilai, on the outskirts of Kuala Lumpur, an attendant checks bottles on a production line.
In 2021, Malaysia's FDI inflows will reach a five-year high of $48.1 billion. AFP/Getty Images/Manan Vatsyayana
Malaysia has been looking for opportunities from the manufacturing shift away from China for several years.

It has made some progress in its efforts, as the Malaysian Investment Development Authority reported in July 2020 that it has attracted at least 32 projects that have relocated from China to Malaysia. The authority provided no information about the projects or the companies that relocated.

However, even before the pandemic, tech investments in Malaysia were increasing due to lower labor costs and US-China trade tensions. Major transactions in recent years have included a 1.5 billion Malaysian ringgit ($339 million) investment by the US chip giant Micron over a five-year period beginning in 2018. Jabil, a US-based manufacturer of iPhone covers, has also expanded its operations in Malaysia.

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