As a result of the U.S.-China trade war, multinational companies are looking to find alternatives for their manufacturing needs. While Vietnam has benefited from the trade war (see my previous post: Vietnam cashing in on the U.S.-China trade war?), Vietnam is seeing challenges from the high demand where they are currently overcapacity. This overcapacity has created a delay of services and is giving companies second thoughts about moving their manufacturing base to Vietnam. To learn more about the capacity problems in Vietnam, check out this article.

Thailand sees this as a big opportunity and the article below notes that Thailand is considering a relocation package, that will likely leverage tax incentives, to attract foreign companies to set up their manufacturing operations there. Their hope is to use this to combat their recent weakening in economic growth. Thailand is targeting companies where manufacturing is based in China.

With the rise of costs in China and the current trade war, corporates in the manufacturing industry will soon see more incentives and promotions to relocate to other manufacturing hubs.