Navigating Asia’s Industrial Landscape
The Emerging Asia Manufacturing Index is a model for ranking manufacturing destinations to help international manufacturers address Asia regional knowledge gaps as they seek to better understand these rapidly changing investment and operating environments.
Currently covering eight countries, and based on the relative score ranking of data sources, the EAMI is researched and produced by Dezan Shira & Associates’ Business Intelligence practice, which is located throughout Asia and specializes in regional benchmarking and locations analysis for key sectors including manufacturing.
Each of the eight markets benchmarked in our ranking offers distinctive opportunities to foreign investors, varying according to the industry. We delineate each parameter of interest to manufacturers seeking the next investment destination in the comprehensive table available in our PDF report.
Shifting Tides in Asia’s Manufacturing Landscape
As the global economy embarks on its post-pandemic journey, the manufacturing sector is on the path to recovery. Yet, the aftermath of the pandemic lingers, presenting a mix of opportunities and challenges.
Over the past five years, more than 90 percent of North American manufacturing companies have diversified their production to various regions, including Mexico, Morocco, Turkey, and especially South and Southeast Asia. This trend is expected to persist, and Emerging Asia's manufacturing sector is undergoing rapid transformations.
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Measuring Asia’s eight dynamic emerging countries
- Bangladesh
- China
- India
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
Across eight key tiers to help you make informed business decisions
- Economy
- Political Risk
- Business Environment
- International Trade
- Tax Policy
- Infrastructure
- Workforce
- Innovation
The table below is a gathering of our key findings based on multiple parameters within each of the eight core tiers.
Rankings by Subcategory (Tiers) of the Emerging Asia Manufacturing Ranking 2024 (1 = best)
| Tier | Bangladesh | China | India | Indonesia | Malaysia | Philippines | Thailand | Vietnam |
|---|---|---|---|---|---|---|---|---|
|
| 5 | 4 | 2 | 1 | 7 | 6 | 8 | 3 |
| The Economy Tier, weighted at 13%, evaluates various parameters such as economic growth and inflation, offering insights into the overall economic landscape with a focus on stability, resilience, and growth potential. In this year’s ranking, Indonesia emerged as the frontrunner, supported by its low inflation rate, stable currency, and the lowest debt-to-GDP ratio among the eight countries assessed. In terms of economic growth within this tier, India, Bangladesh, and the Philippines take the lead. | ||||||||
|
| 8 | 3 | 6 | 5 | 1 | 7 | 4 | 2 |
| The Political Risk Tier provides a comprehensive assessment of the country's government, regulatory stability, and levels of corruption. It is weighted at 6% within the EAMI 2024 and showcases the politically stable environment manufacturers enjoy in Malaysia, China, and Vietnam. | ||||||||
|
| 7 | 8 | 2 | 6 | 1 | 5 | 4 | 3 |
| The Business Environment Tier, at 19% weightage, offers detailed insights into the regulatory framework, operational conditions, and specific restrictions within each economy. Three out of the six parameters for this criterion include the Manufacturing Registered Capital Minimum Average, Average Company Setup Time, and ease of hiring foreign staff. Each parameter undergoes thorough research and scrutiny by our experts at Dezan Shira & Associates, guaranteeing the provision of up-to-date rankings and detailed insights into specific facets of each parameter. | ||||||||
|
| 8 | 2 | 7 | 5 | 3 | 6 | 4 | 1 |
| The International Trade Tier, with a weight of 12%, offers a glimpse into the level of openness for international trade within each economy. This segment presents a comprehensive analysis of the trade dynamics of each country, the presence of trade barriers, and an evaluation of domestic suppliers for key industries. Vietnam stands out in this tier, demonstrating a significant strength in attracting foreign manufacturers: its low tariffs, attributed to its robust integration into various free trade agreements, serve as a compelling advantage. | ||||||||
|
| 6 | 4 | 7 | 5 | 3 | 5 | 1 | 2 |
| The Tax Policy Tier measures the tax incentives in each economy for the manufacturing sector. Key parameters include Corporate Tax Rates, available Tax Incentives for Manufacturers, and measured Tax Efficiency. At the time of compiling the EAMI 2024, the OECD's Global Minimum Tax (GMT) and its effect on MNE profits have not been factored into this Tier yet. However, they are expected to have a significant impact on next year's ranking. | ||||||||
|
| 7 | 1 | 5 | 6 | 3 | 8 | 2 | 4 |
| The Infrastructure Tier, at 21%, holds the highest weight within this index and evaluates the quality of infrastructure across 11 parameters. It encompasses diverse infrastructure aspects, including Energy Cost, which assesses electricity prices supporting manufacturing operations in each country, and Infrastructure Investment, reflecting the percentage of GDP invested in infrastructure by the government. Additionally, it analyzes Water Availability, the state of the country’s internet development, and International Freight Costs. China leads in this tier due to its unparalleled investments into infrastructure. | ||||||||
|
| 4 | 7 | 1 | 5 | 3 | 2 | 8 | 6 |
| Equally important, The Workforce Tier, constituting 19% of the index, evaluates the current state of the labor force. Key parameters include population, wage, and productivity measurements, which are pivotal in identifying markets with cost-effective labor. Bangladesh leads among the eight countries in terms of average wage and labor market mobility. However, India's large population and low minimum wage, as well as the Philippines' population growth, median age, and English language proficiency, position them ahead of the other six countries in this tier overall. | ||||||||
|
| 8 | 1 | 4 | 3 | 2 | 7 | 6 | 5 |
| With a weight of 5%, the Innovation tier assesses two primary parameters: R&D expenditure and Innovation/Technology Access, which are crucial for high-tech manufacturers. Both parameters are sourced from the World Intellectual Property Organization’s Global Innovation Index 2023, with China, Malaysia, and Indonesia emerging as frontrunners in this aspect. | ||||||||
| Final Ranking | 8 | 1 | 4 | 5 | 3 | 7 | 6 | 2 |
Meet Our Experts
Marco Förster
Director, ASEAN
Ho Chi Minh City Office
As ASEAN Director at Dezan Shira & Associates, Marco Förster oversees the firm's regional initiatives in Southeast Asia. Primarily based in Vietnam, his focus involves advising corporate investors on expansion strategies within ASEAN and ensuring operational compliance. Before his current role, he spent several years with the firm in Beijing and Shenzhen.
Pritesh Samuel
Head of Business Intelligence
Ho Chi Minh City Office
Pritesh Samuel serves as the Head of the Business Intelligence Unit at Dezan Shira & Associates. In this role, he equips corporations with customized market research and benchmarking studies, empowering them to make well-informed business decisions in the region. Based out of Vietnam, he leads projects spanning ASEAN, India, and China with his dedicated teams.
Kyle Freeman
Partner
Kyle Freeman is a Partner at Dezan Shira & Associates and leads the International Business Advisory team in North China as well as the firm's North American client services desk in Asia. He advises clients on market entry strategy, corporate structuring and establishment, and related tax and legal issues concerning investment in China, Hong Kong, and Southeast Asia.
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