JLL: Supply Chain Shifts Reshape Asia’s Manufacturing Landscape
Over the next decade, companies are increasingly adopting a China + 1 strategy, expanding manufacturing beyond China to reduce dependence and mitigate supply chain disruptions. This approach is positioning Southeast Asia and India as the primary beneficiaries of this diversification trend, according to JLL.
Governments across the region are responding by implementing pro-manufacturing policies, improving access to industrial land, and facilitating capital inflows, according to JLL. Key structural advantages, including large labor pools, competitive costs, and economic incentives, further enhance their attractiveness, JLL.
Rising production costs in China, spurred by increasing wages, land prices, and material expenses, are driving the shift. Industrial land costs in China are now up to twice as high as in some Southeast Asian nations and India, according to JLL. Meanwhile, real-world investment gains reflect this momentum: Indonesia attracted USD 28.7 billion in manufacturing FDI, an increase of USD 4 billion over the previous year, and Vietnam saw a 30 % surge to USD 23.5 billion.
JLL emphasizes that companies must evaluate not only cost factors but also qualitative considerations such as infrastructure, skilled labor, regulatory environment, market access, and political stability to ensure long-term success in new locations.
Discover how JLL is shaping the future of supply chains with innovative real estate and logistics solutions: www.jll.com/en-sea
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🗓️ 14 October 2025
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