The Development of Southeast Asian Manufacturing under the Context of Sino-US Trade Frictions

The U.S.-China trade war has triggered a significant restructuring of global supply chains, presenting Southeast Asia’s export manufacturing sector with both substantial opportunities and considerable challenges. As the United States imposed tariffs on Chinese goods, numerous foreign enterprises relocated their production to Southeast Asian countries, drawn by their lower labor costs and strategic positions in the global market. This shift has spurred local economic growth while creating new competitive dynamics in the region. This study examines the impact of the trade war on Southeast Asia’s manufacturing industries, focusing on key sectors such as home appliances, apparel, and electronics. Specifically, it analyzes the effects of three rounds of U.S. tariff increases on export orders, highlighting how national policies—such as tax incentives, special economic zones, and streamlined regulatory processes—have played a pivotal role in attracting foreign investment projects. Leveraging their low labor costs, favorable geographic locations, and steadily improving infrastructure, countries like Vietnam, Malaysia, and Indonesia have seen an influx of investment that is driving manufacturing transformation and advancement. However, significant disparities in policy support, workforce skill levels, and industrial structures have led to differing capacities among these nations to integrate into global supply chains. These findings provide valuable insights for enterprises and policymakers in developing long-term strategies to enhance regional competitiveness and resilience.