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252<br />

China is by far the largest electronics manufacturing hub in Asia, but other<br />

destinations are starting to emerge<br />

Electronics<br />

exports/<br />

production 1 ,<br />

USD bn, 2013<br />

CAGR<br />

(2008–13)<br />

China Malaysia Vietnam India<br />

764<br />

12%<br />

75<br />

8%<br />

34<br />

Indonesia<br />

60% 2 17 1 10<br />

9% 5%<br />

▪ The manufacturing ecosystem (final<br />

assembly, component manufacturing<br />

and materials) is strongest in China<br />

▪ Due to rising labor and overhead costs<br />

in China, other destinations have<br />

become more attractive<br />

▪ Vietnam has shown by far<br />

the strongest growth in<br />

electronics manufacturing<br />

between all Asian nations<br />

▪ Low production output as of now<br />

▪ Low manufacturing costs but until<br />

recently financing, infrastructure and<br />

duty structures were unfavourable<br />

▪ Make in India program is<br />

incentivising local manufacturing;<br />

expected to take off in 3–5 years<br />

1 Local electronics production for India, electronics exports for all other countries; 2 2009–14<br />

SOURCE: Miti, Vietnam GSO, BDG Asia, IESA, China National Bureau of Statistics

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