Under the combined pressure of geopolitics, tariffs and industrial migration, how do multinationals build the optimal footprint across ASEAN, India and Mexico?
Under the combined pressure of geopolitics, tariffs and industrial migration, how do multinationals build the optimal footprint across ASEAN, India and Mexico?
For the past five years, China+1 has been the default supply chain strategy for many multinationals. In the new geopolitical cycle of 2025-2026, relying on a single backup market is no longer sufficient. Asia-Pacific Link's Supply Chain Institute finds that 81% of leading multinationals are moving toward multi-hub (China + N) footprint plans.
Vietnam retains the most complete electronics, textile and furniture supply base, but labour costs have risen 22% and land prices 35% over two years. Suitable for mid-to-high-end manufacturing rather than low-cost assembly.
India's PLI subsidy program has been highly effective, but ports, roads and power still need 5-10 years to reach China's 2010 level. Best suited to brands targeting the Indian domestic market.
Under USMCA, Mexican manufacturing enjoys near-zero tariff access to the US. Automotive, appliances and medical devices have added over USD 50 billion of new capacity in Mexico.
Over the next five years, the supply chain winners will not be those with the lowest cost, but those who best balance resilience, transparency and compliance.
Different sectors call for different reconfigurations: consumer electronics gravitate to ASEAN clusters; auto parts return to Mexico; pharma and medical devices favour mature manufacturing economies (Ireland, Singapore); FMCG shifts toward localized production and regional hubs.