FDI Surge Driven by China+1 Supply Chain Diversification

This map highlights how foreign direct investment (FDI) inflows into ASEAN are accelerating due to global firms diversifying their supply chains away from China.

Key Points:

• BYD (China) is expanding EV production in Thailand.

• Samsung (South Korea) has made Vietnam a central manufacturing and export hub.

• Foxconn (Taiwan) is pushing into Indonesia to spread operational risk.

Implication:

Rising geopolitical tensions, rising costs in China, and policy uncertainty are pushing global firms to pursue a "China+1" strategy. ASEAN economies are capitalizing on this trend by offering alternative manufacturing bases, fueling inter-country competition for high-value FDI.