{"id":22494,"date":"2025-09-03T17:41:39","date_gmt":"2025-09-03T10:41:39","guid":{"rendered":"https:\/\/b-company.jp\/?p=22494"},"modified":"2025-09-05T10:33:46","modified_gmt":"2025-09-05T03:33:46","slug":"choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook","status":"publish","type":"post","link":"https:\/\/b-company.jp\/vi\/choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook\/","title":{"rendered":"L\u1ef1a ch\u1ecdn qu\u1ed1c gia x\u00e2y d\u1ef1ng nh\u00e0 m\u00e1y t\u1ea1i \u0110\u00f4ng Nam \u00c1: Nh\u1eefng ti\u00eau ch\u00ed quan tr\u1ecdng doanh nghi\u1ec7p kh\u00f4ng n\u00ean b\u1ecf qua"},"content":{"rendered":"
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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/em><\/p>\n

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.<\/em><\/p>\n

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher. <\/em><\/p>\n<\/div>\n\t

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Southeast Asia offers rapidly growing markets and competitive manufacturing clusters. But each country has distinct strengths. This guide compares Vietnam, Thailand, Indonesia, Malaysia, and the Philippines on critical site-selection factors. We cover labor costs and skills<\/strong>, infrastructure and logistics<\/strong>, FDI incentives and land policies<\/strong>, and ease of doing business and trade access<\/strong>. This guide compares key market indicators that serve as a starting point for analysis. For an optimal investment decision, businesses are advised to align these factors with their industry context and strategic objectives.<\/p>\n

1. Labor market: Costs & skills<\/strong><\/h3>\n

Asian manufacturing relies heavily on labor costs. The countries differ significantly in minimum wages and skilled\u2010worker salaries.<\/p>\n

Avg. monthly minimum wage and manufacturing wage (2024)<\/strong><\/p>\n

Unit: USD
\n\"Avg.<\/p>\n

Source: Asean Briefing<\/a>[1]<\/u><\/a>[2]<\/u><\/a>, B&Company\u2019s synthesis<\/p>\n

For entry-level factory labor, Vietnam<\/strong> ($342\/month) and Indonesia<\/strong> ($350\/month) stand out with the lowest wages offer the lowest wages, making them ideal for cost-efficient, labor-intensive manufacturing. In contrast, while Thailand <\/strong>($431\/month) and Malaysia<\/strong> ($797\/month) have higher wages, their more skilled workforces and better vocational training systems may shorten production ramp-up times for advanced manufacturing. The Philippines<\/strong> presents a middle ground with moderate minimum wages but variable productivity, which may raise effective labor costs. Ultimately, the suitable location depends on whether a company prioritizes low costs or access to skilled workers.<\/p>\n

2. Infrastructure & Logistics<\/strong><\/h3>\n

A site\u2019s connectivity to supply chains and markets is critical. We compare port quality, industrial parks, and logistics performance for our five countries:<\/p>\n

Infrastructure & Logistics quality<\/strong><\/p>\n\n\n\n\n\n\n\n\n
Country<\/strong><\/td>\nPort infrastructure (Container Port Performance Index – CPPI 2023)[3]<\/a><\/strong><\/td>\nNo. of Industrial parks\/zones[4]<\/a><\/strong><\/td>\nLogistics rank (Logistics Performance Index – LPI 2023)[5]<\/a><\/strong><\/td>\n<\/tr>\n
Malaysia<\/strong><\/td>\nRank 5 (Tanjung Pelepas)<\/td>\n~600 (wide network)<\/td>\nScore 3.6 (Rank 31)<\/td>\n<\/tr>\n
Vietnam<\/strong><\/td>\nRank 7 (Cai Mep)<\/td>\n~300 zones<\/td>\nScore 3.3 (Rank 50)<\/td>\n<\/tr>\n
Indonesia<\/strong><\/td>\nRank 23 (Tanjung Priok)<\/td>\n103 zones<\/td>\nScore 3 (Rank 63)<\/td>\n<\/tr>\n
Thailand<\/strong><\/td>\nRank 45 (Laem Chabang)<\/td>\nExtensive IEAT zones (Industrial Estate Authority of Thailand)<\/td>\nScore 3.5 (Rank 37)<\/td>\n<\/tr>\n
Philippines<\/strong><\/td>\nRank 143 (Cebu)<\/td>\n~427 PEZA zones (Philippine Economic\u00a0Zone\u00a0Authority)<\/td>\nScore 3.3 (Rank 47)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: B&Company\u2019s synthesis<\/p>\n

Infrastructure quality is uneven across the region, with Malaysia<\/strong> and Thailand<\/strong> offering the most advanced ports, industrial parks, and logistics networks. These countries provide speed-to-market advantages, particularly for export-driven industries. Vietnam<\/strong> has invested heavily in ports, highways, and industrial zones, positioning itself as a fast-improving contender, while Indonesia\u2019s<\/strong> logistics costs remain relatively high despite the development of over 100 industrial zones. The Philippines<\/strong> offers many PEZA zones but faces challenges due to geography and congestion. For companies prioritizing supply chain reliability, Malaysia and Thailand are safer bets, whereas Vietnam offers a competitive balance of cost and improved infrastructure.<\/p>\n

3. FDI incentives & Land policy<\/strong><\/h3>\n

Governments compete with fiscal incentives and land-use rights to attract multinationals. This includes tax holidays, reduced land leases, and subsidies targeted to strategic sectors.<\/p>\n\n\n\n\n\n\n\n\n
Country<\/strong><\/td>\nCorporate Income Tax (CIT) incentives<\/strong><\/td>\nLand use & rental<\/strong><\/td>\nOther subsidies<\/strong><\/td>\n<\/tr>\n
Vietnam<\/strong><\/td>\n\n
    \n
  • – High-tech\/R&D projects: 5% CIT for up to 37 years<\/u> + 6-year tax holiday + 13 next years at 50% rate.<\/li>\n
  • – Normal Special Economic Zone (SEZ) projects: 10\u201317% for 10\u201315 years<\/u><\/li>\n<\/ul>\n<\/td>\n
Land rent reduction or exemption for 3\u201315 years in industrial parks<\/td>\nWaivers on import duties for machinery\/equipment (which is to build a fixed asset of the investment project)<\/td>\n<\/tr>\n
Thailand<\/strong><\/td>\nThrough the Board of Investment (BOI): 8\u201313 years CIT exemption<\/u> (up to 10+ years for high-tech A1+ projects)<\/td>\nFavorable land leases in Free Industrial Zones under BOI (e.g., duty free)<\/td>\nImport duty exemptions on machinery\/raw materials; grants for innovation (e.g., THB 10B fund)<\/td>\n<\/tr>\n
Malaysia<\/strong><\/td>\n\n
    \n
  • – Pioneer Status: 70% tax exemption for 5 years. ITA: 60% capex allowance offset against 70% of statutory income (5 years).<\/li>\n
  • – High-tech: up to 100% exemption for 10+ years <\/u><\/li>\n<\/ul>\n<\/td>\n
Long-term industrial park leases (20\u201399 years)<\/td>\nImport duty exemptions for capital equipment (e.g., Licensed Manufacturing Warehouses (LMWs) & Free Zones (FIZ)[6]<\/a><\/td>\n<\/tr>\n
Indonesia<\/strong><\/td>\nTax holiday 5\u201320 years (100% CIT exemption)<\/u> for projects \u2265IDR 500B. Smaller (IDR 100\u2013500B): 50% CIT cut for 5 years<\/td>\nLand rights: Hak Guna Bangunan (50 years, extendable), up to 70 years in SEZs<\/td>\n30% investment tax credit over 6 years, accelerated depreciation<\/td>\n<\/tr>\n
Philippines<\/strong><\/td>\n\n
    \n
  • – PEZA zones: 4\u20137 years Income Tax Holiday<\/u>, then 5% gross income tax in lieu of all taxes.<\/li>\n
  • – BOI: 4\u20137 years ITH for strategic projects<\/li>\n<\/ul>\n<\/td>\n
Land in PEZA zones can be leased for up to 50 years, renewable once for an additional 25 years<\/td>\nDuty-free import of equipment, training & employment deductions<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: B&Company\u2019s synthesis<\/p>\n

Each country\u2019s fiscal package targets different priorities. Vietnam and Thailand<\/strong> offer the deepest income-tax holidays (especially for technology or export-oriented manufacturing). Indonesia<\/strong>\u2019s new tax-holiday regime makes very large projects cheaper. Malaysia<\/strong> and the Philippines<\/strong> focus on moderate-length tax breaks but combine them with ease (Malaysia\u2019s \u201cPioneer\u201d program is straightforward; PEZA zones in the Philippines bundle incentives). In practice, one should match incentives to project profile: for example, an ICT manufacturing line might favor Vietnam or Thailand (long holidays and 5% rates), while a commodity processing plant might do well under Malaysia\u2019s Pioneer status or Indonesia\u2019s allowance.<\/p>\n

4. Ease of doing business & market access<\/strong><\/h3>\n

Regulatory and market factors\u2014how quickly you can set up, navigate bureaucracy, and ship goods\u2014are equally decisive.<\/p>\n\n\n\n\n\n\n\n\n
Country<\/strong><\/td>\nBusiness-ready rank (B-ready 2024)[7]<\/a><\/strong><\/td>\nSetup Time & Transparency<\/strong><\/td>\nTrade Agreements & Market Access<\/strong><\/td>\n<\/tr>\n
Malaysia<\/strong><\/td>\n12 (2020)<\/strong><\/td>\nOnline registration possible; company setup in days. Strong legal transparency<\/td>\nASEAN, RCEP, CPTPP, bilateral FTAs with Japan, Australia, NZ, etc.<\/td>\n<\/tr>\n
Philippines<\/strong><\/td>\n16<\/td>\nRegistration often >1 month; fragmented across agencies<\/td>\nASEAN, RCEP, AJCEP (Japan); fewer bilateral FTAs than peers<\/td>\n<\/tr>\n
Thailand<\/strong><\/td>\n21 (2020)<\/td>\nFast-track registration; efficient BOI support. Strong IP protection for manufacturing sectors<\/td>\nASEAN, RCEP, multiple FTAs (e.g., Japan, Australia); EU FTA under negotiation<\/td>\n<\/tr>\n
Vietnam<\/strong><\/td>\n26<\/td>\nCompany registration ~2\u20133 weeks. Reforms are improving, but bureaucracy persists<\/td>\nASEAN, RCEP, CPTPP, EVFTA (EU), UKVFTA \u2013 broad global tariff-free access<\/td>\n<\/tr>\n
Indonesia<\/strong><\/td>\n31<\/td>\nCompany incorporation ~4\u20136 weeks. Some bureaucracy and transparency concerns<\/td>\nASEAN, RCEP, Japan CEPA, EU FTA under negotiation<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: B&Company\u2019s synthesis<\/p>\n

Until 2020, Malaysia<\/strong> and Thailand<\/strong> consistently ranked high in the World Bank\u2019s Ease of Doing Business index. Although the index was discontinued and replaced by B-READY in 2021, both countries remain recognized for transparent regulations and efficient company setup processes. Vietnam<\/strong> remains more bureaucratic but compensates with extensive free trade agreement (FTA) coverage, including CPTPP and EVFTA, which provides unparalleled access to global markets. Indonesia<\/strong> balances its large domestic market with moderate business conditions, while the<\/strong> Philippines<\/strong> trails in regulatory efficiency and has fewer trade agreements beyond ASEAN. For companies focused on global supply chains, Vietnam and Malaysia are particularly attractive; those prioritizing smooth setup and legal transparency may lean toward Thailand and Malaysia.<\/p>\n

5. Strategic Multi-Country View \u2013 B&Company\u2019s Edge<\/strong><\/h3>\n

No single country is \u201cbest\u201d for every project. A cost-sensitive garment factory may favor Vietnam or Indonesia (lowest wages, solid textile parks), whereas an electronics assembly plant might choose Malaysia or Thailand (higher skill-level workforce, better utilities and incentives for high-tech). Meanwhile, the Philippines might win on language and cultural fit for certain multinationals despite higher logistics costs.<\/p>\n

The key takeaway is a strategic match of project priorities to country profiles. For example:<\/p>\n

– If lowest unit labor cost matters:<\/strong> prioritize Vietnam\/Indonesia (min. wage ~$150\u2013$210) and bolster through local skill training.<\/p>\n

– If world-class infrastructure is crucial:<\/strong> favor Malaysia\/Thailand (top-tier ports, highways, power).<\/p>\n

– If maximal tax breaks for R&D:<\/strong> lean on Vietnam\/Thailand incentives (5\u201310% CIT, long holidays).<\/p>\n

– If rapid export to the EU\/US is the goal:<\/strong> Vietnam\/Malaysia\u2019s FTAs can cut tariffs significantly.<\/p>\n

Choosing the right country in Southeast Asia requires navigating multiple trade-offs\u2014cost versus skills, infrastructure versus incentives, short-term setup versus long-term scalability. B&Company offers an integrated solution by leveraging its network with local research agencies across Southeast Asia. This enables one-stop support for investors, covering multi-country benchmarking, industrial park shortlisting, incentive assessment, and regulatory navigation. With this capability, B&Company helps multinationals move beyond fragmented country reports and make data-driven site selection decisions across the region.<\/p>\n

Conclusion<\/strong><\/h3>\n

Expanding into Southeast Asia requires balancing costs, infrastructure, incentives, and regulations\u2014not just comparing single criteria. The right choice depends on both current metrics and future shifts like labor reforms, trade agreements, and logistics upgrades.<\/p>\n

B&Company provides one-stop, multi-country analysis through its regional research network, giving decision-makers comparable data and sector-specific insights. With this support, investors can move beyond instinct and make expansion decisions in Southeast Asia that are competitive, well-informed, and future-ready.<\/p>\n

\n

[1]<\/a> Asean Briefing (2024), Southeast Asia Manufacturing Tracker: Key Insights and Trends <Access<\/a>><\/p>\n

[2]<\/a> Asean Briefing (2024), ASEAN Labor Costs: Minimum Wage and Social Insurance Essentials <Access<\/a>><\/p>\n

[3]<\/a> World Bank (2024), The Container Port Performance Index 2023 <Access<\/a>><\/p>\n

[4]<\/a> B&Company\u2019s synthesis from public data<\/p>\n

[5]<\/a> World Bank, Logistics Performance Index (LPI) <Access<\/a>><\/p>\n

[6]<\/a> PwC Malaysia, 2024\/2025 Malaysian Tax Booklet <Access<\/a>><\/p>\n

[7]<\/a> B-READY report (by World Bank): evaluates aspects of a firm’s life cycle, including starting, operating, and closing a business. Its 2024 Edition covers only 50 economies, with the goal to cover 180 economies by 2026<\/p>\n

\u00a0<\/em><\/p>\n

* If you wish to quote any information from this article, please kindly cite the source along with the link to the original article to respect copyright.<\/em><\/p>\n\n\n\n
B&Company<\/em><\/strong><\/p>\n

The first Japanese company specializing in market research in Vietnam since 2008. We provide a wide range of services including industry reports, industry interviews, consumer surveys, business matching. Additionally, we have recently developed a database of over 900,000 companies in Vietnam, which can be used to search for partners and analyze the market.<\/p>\n

Please do not hesitate to contact us if you have any queries.<\/p>\n

info@b-company.jp<\/em><\/a>\u00a0+ (84) 28 3910 3913<\/strong><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

H\u01b0\u1edbng d\u1eabn n\u00e0y so s\u00e1nh Vi\u1ec7t Nam, Th\u00e1i Lan, Indonesia, Malaysia v\u00e0 Philippines v\u1ec1 c\u00e1c y\u1ebfu t\u1ed1 quan tr\u1ecdng khi l\u1ef1a ch\u1ecdn \u0111\u1ecba \u0111i\u1ec3m x\u00e2y d\u1ef1ng nh\u00e0 m\u00e1y.<\/p>","protected":false},"author":12,"featured_media":22496,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1357,85],"tags":[1459,1803,1927],"class_list":["post-22494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-press-release-en","category-vietnam-briefing","tag-investment-en","tag-manufacturing","tag-multi-country-research"],"yoast_head":"\nChoosing the country to build your factory in Southeast Asia: Key criteria businesses shouldn\u2019t overlook - B-Company<\/title>\n<meta name=\"description\" content=\"This guide compares Vietnam, Thailand, Indonesia, Malaysia, and the Philippines on critical site-selection factors for factories.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/b-company.jp\/vi\/choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook\/\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Choosing the country to build your factory in Southeast Asia: Key criteria businesses shouldn\u2019t overlook\" \/>\n<meta property=\"og:description\" content=\"This guide compares Vietnam, Thailand, Indonesia, Malaysia, and the Philippines on critical site-selection factors for factories.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/b-company.jp\/vi\/choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook\/\" \/>\n<meta property=\"og:site_name\" content=\"B-Company\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-03T10:41:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-05T03:33:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/b-company.jp\/wp-content\/uploads\/2025\/09\/Vietnam.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1075\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"B& Company\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u0110\u01b0\u1ee3c vi\u1ebft b\u1edfi\" \/>\n\t<meta name=\"twitter:data1\" content=\"B& Company\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u01af\u1edbc t\u00ednh th\u1eddi gian \u0111\u1ecdc\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 ph\u00fat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/b-company.jp\/zh\/choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook\/\",\"url\":\"https:\/\/b-company.jp\/zh\/choosing-the-country-to-build-your-factory-in-southeast-asia-key-criteria-businesses-shouldnt-overlook\/\",\"name\":\"Choosing the country to build your factory in Southeast Asia: Key criteria businesses shouldn\u2019t overlook - 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