KUALA LUMPUR: Vietnam, Malaysia, and India are among the key beneficiaries of supply chain shifts away from China, particularly in textiles and electronics, Moody’s Ratings said.
Despite US-China tensions, China’s dominance in global value chains has kept relocations limited. ASEAN and India accounted for just 9 per cent and 3 per cent of US imports in 2024.
China, meanwhile, is redirecting exports to ASEAN, Russia, and the EU.
Vietnam and Malaysia are drawing more greenfield investments as China’s share wanes.
Moody’s noted that new US duties on solar cells from Southeast Asia—mainly targeting Chinese firms—highlight risks of indirect tariff exposure for ASEAN economies reliant on Chinese demand.
To stay competitive, ASEAN and India must strengthen domestic supply chains, improve infrastructure, and liberalise trade and investment rules, it said. — BERNAMA
