Max HenryFounder & Executive Director, Global Supply Chain Council (GSCC) · Founder & Executive Director at Global Supply Chain Council (GSCC)

Asia's Business Shuffle: Mexico, Vietnam, and Beyond!

28 May 2025 · 1 min

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In this segment, the speaker explains that while nearshoring to Mexico has been prominent, companies are also diversifying their supply chains within Asia, shifting production from China to Vietnam, Malaysia, and Indonesia. European firms exhibit similar, though less intense, diversification patterns. Overall, firms are not necessarily abandoning a specific country but are seeking to spread their sourcing across regions—including Eastern Europe, other Asian nations, and Latin America—to keep costs low while reducing reliance on any single source.

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By the way, it's not always nearshoring. There's been a lot of nearshoring towards Mexico, but there's also been some diversification within Asia. So you've seen a lot of moves from China into Vietnam, from China into Malaysia, to some extent into Indonesia. If I'm looking at the European businesses, it's the same but with less intensity. But I think there is a general— there's not necessarily a willingness to move out of a specific country, but there is definitely a willingness to diversify your sources. So again, I've seen a lot of focus on moving either, you know, moving between Eastern Europe, Asia, moving within China from— within Asia from China to other countries, moving from Asia into Eastern Europe or Latin America to have, whilst keeping your costs under control, having much more diversification of your sources.