A migration of manufacturing is sweeping across South and Southeast Asia. Small and large nations alike are emerging as powerful new manufacturing centers, attracting companies eager to establish or expand their production facilities.

Watch Marko Vuksanovic, Tradewin’s Principal for the Asia Pacific region, and Justin Kyngdon, Principal of Expeditors’ Supply Chain Solutions for Asia Pacific, Middle East, and Africa, shed light on the trade landscape in South and Southeast Asia and offer valuable insights to help you navigate the exciting possibilities this region presents.

The World Bank reports, “Growth in South Asia is expected to be strong at 6.0% in 2024, driven mainly by robust growth in India and recoveries in Pakistan and Sri Lanka…In India, which accounts for the bulk of the region’s economy, output growth is expected to reach 7.5% in FY23/24 before returning to 6.6% over the medium term, with activity in services and industry expected to remain robust.”

“A recent LinkedIn poll conducted by Expeditors targeted companies considering a shift to South Asia. The overwhelming majority of respondents indicated ‘regulations/customs/compliance’ as their biggest concern.”

Encouraged by government investment, companies are no longer just transferring existing production lines. We're witnessing a wave of brand-new factories being built, with countries such as India leading the charge. This signifies a long-term commitment to the region and a belief in its potential for sustainable growth.

However, navigating the trade regulations and customs procedures unique to each nation can stop businesses from making the leap into the region. Understanding these intricacies is crucial for optimizing efficiency and maximizing the benefits of operating in the most diverse continent in the world. Underscoring this point, a recent LinkedIn poll conducted by Expeditors targeted companies considering a shift to South Asia. The overwhelming majority of respondents indicated "regulations/customs/compliance" as their biggest concern.

The good news? There's a silver lining. By strategically utilizing South and Southeast Asia's free trade agreements and developing supply chain infrastructure, companies can discover opportunities to reduce costs and streamline their supply chains. This could involve setting up regional distribution centers or leveraging manufacturing incentives offered by individual countries.

Written by MarkoVuksanovic and Justin Kyngdon