Beyond Cost: Country Readiness for Manufacturing and Supply Chains, a report published by the World Economic Forum and leading global consulting firm Kearney, explores the changing global manufacturing landscape and the key elements influencing national competitiveness. The research is based on 60 in-depth consultations and the opinions of more than 300 worldwide operations executives.
Following recent elections, rising international tensions, changing environmental objectives, and the quick uptake of game-changing technologies like artificial intelligence, global value chains are undergoing a significant transition.
The practice of choosing locations based on cost is changing into a more intricate process that takes into account a nation’s willingness to provide an environment that supports strategic priorities as firms evaluate their footprints and network strategies.
In light of the continuous rewiring of global value chains, the paper highlights seven country readiness characteristics that drive private sector investment and shape a nation’s appeal to companies and politicians.
The paper specifically emphasised Vietnam’s strategic edge. Vietnam is using its position to increase its manufacturing exports to the EU, particularly in ready-made clothing, as trade accords like the EU-Vietnam Free Trade Agreement remove tariffs. The nation is a desirable location for businesses looking for scalable, affordable operations because of its contemporary industrial parks and developing logistics.
Singapore, which combines cutting-edge infrastructure, pro-business policies, and strong trade connectivity, is known as a model for high-tech and sustainable manufacturing. Siemens’ leadership is further evidenced by initiatives like its collaboration with the Economic Development Board to build smart manufacturing facilities that use renewable energy to reach the country’s goal of having net-zero emissions by 2050.
Although India’s economy has historically been centred on services, the country’s manufacturing sector is expanding, with states like Tamil Nadu and Maharashtra becoming major centres for the manufacture of various products including textiles. The Government’s efforts to boost industry competitiveness are reflected in this.
