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China Plus One: Vietnam and Thailand Manufacturing Solutions
October 28, 2025 | Marcy LaRont, PCB007 MagazineEstimated reading time: 1 minute
U.S. electronics manufacturing companies are weighing the “China Plus One” solution as they strategize how best to mitigate the ever-increasing pressures and costs of manufacturing in China. Several global markets, particularly Thailand and Vietnam, are seeing significant growth in their sectors. One has infrastructure and a more established history of success in manufacturing, while the other has a much larger number of eager, young workers. This article breaks down the pros and cons of each market, including a look at U.S. tariffs and how each country is addressing a significant skilled labor gap to support their electronics manufacturing goals.
How Do They Stack Up?
Vietnam has emerged as a top-tier electronics hub in Asia, powered by foreign-invested enterprises (FIEs) clustered around Hanoi and Ho Chi Minh City. Electronics now account for over 30% of Vietnam’s exports, and FIEs contribute more than 90% of the sector’s shipments—evidence of deep integration into global supply chains. Global majors like Samsung, LG, Foxconn, Intel, Pegatron, and Canon anchor industrial zones in Bac Ninh, Bac Giang, and the HCMC–Binh Duong–Dong Nai corridor. This footprint brings scale, supplier ecosystems, and export infrastructure.
Thailand offers a different value proposition. Its electronics and engineering (E&E) base is broad and mature, with manufacturing concentrated in central/eastern provinces (Chonburi, Rayong, Chachoengsao, Samut Prakan) and embedded across both industrial estates (≈4,500 factories) and outside zones (≈65,000 factories). The sector ranks among Thailand’s top exports; official investment promotion data show electronics and engineering (E&E) repeatedly topping new project applications, signaling a sustained pipeline and supportive policies.
To continue reading this article, which originally appeared in the October 2025 edition of PCB007 Magazine, click here.
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