Southeast Asia identified as most attractive region for Advanced Manufacturing Investment
Eurogroup Consulting has released a new whitepaper, “Rising Tides in the East: How is Southeast Asia Transforming into the Global Hub of Advanced Manufacturing?”, revealing that Southeast Asia is now the most attractive region in the world for advanced manufacturing investment.
As global supply chains diversify and Industry 4.0 technologies accelerate, ASEAN has emerged as a highly competitive destination—surpassing regions such as North America, Europe, and East Asia in cost-efficiency, scalability, and industrial momentum.
The whitepaper examines six key ASEAN markets and highlights how government policies, rapid digitalisation, and strong multinational investment are accelerating the region’s transformation into a global manufacturing hub, with key findings including:
- ASEAN ranks first globally in advanced manufacturing investment attractiveness, supported by competitive labor, robust FDI inflows, and fast-expanding industrial zones.
- Europe leads slightly in readiness, but Southeast Asia already ranks second worldwide and is rapidly closing the gap due to strong automation and digital transformation efforts.
- More than US$55 billion in new manufacturing investments from OECD-headquartered companies shifted into ASEAN in 2022–2023, over twice the amount redirected into China, signaling a major restructuring of global supply chains .
- Singapore, Malaysia, Thailand, and Vietnam have emerged as regional leaders for advanced manufacturing, each offering unique capabilities such as high-tech R&D, automation, electronics assembly, and component production.
- Indonesia and the Philippines are strengthening their long-term competitiveness through workforce development, industrial expansion, and Industry 4.0 adoption.
- ASEAN’s youthful and growing workforce—with more than two-thirds of its 650 million citizens of working age—provides a major demographic advantage for companies seeking scalable production capacity .
A Defining Moment for ASEAN’s Industrial Future
As global manufacturing shifts toward sustainability, automation, and digital operations, Southeast Asia is becoming the epicenter of the next industrial revolution. With cost advantages, strong policy support, and a rapidly modernising workforce, ASEAN is now the most compelling region for advanced manufacturing investment.
The whitepaper also highlights a regional diversification strategy—linking innovation hubs like Singapore and Malaysia with high-volume production bases in Thailand, Vietnam, and Indonesia—to help manufacturers build resilient and scalable Industry 4.0 ecosystems.
The ADMAN Assessment Tool: A New Framework for Investors
Eurogroup Consulting developed a proprietary Advanced Manufacturing (ADMAN) Assessment Tool to evaluate global regions based on:
- Readiness (automation, digitalisation, sustainability, workforce capabilities)
- Investment Attractiveness (CAPEX, OPEX, incentives, labor environment)
- Market Size (existing advanced manufacturing facilities
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