Why ‘China plus one’ is paying off less than Southeast Asia hoped
"China plus one" sent billions of dollars of investment into Southeast Asian factories. Yet the region isn't capturing enough value.
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# Summary Despite "China plus one" diversification strategies directing billions into Southeast Asian manufacturing facilities, the region is failing to retain sufficient profit margins and economic value compared to initial expectations. Companies are primarily using Southeast Asia for low-cost labor and assembly operations while concentrating higher-value activities like design, R&D, and supply chain management in established hubs, limiting the region's ability to upgrade its industrial base and create sustainable competitive advantages.
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