Manufacturing and logistics demand in Indonesia and Vietnam is expected to grow by up to 20% over the next three years, as companies increasingly prioritise building resilient regional supply chains over reacting to short-term tariff fluctuations. This is according to Knight Frank's Horizon Report, From Whiplash to Resilience: Corporate Real Estate in the New World Order.
Structural cost differences remain the key driver behind multinational companies from the Chinese mainland, Japan, and South Korea redirecting capital into Vietnam and Indonesia under “China+N” strategies. By investing in these Southeast Asian markets, firms gain access to cost-efficient, purpose-built industrial facilities that support supply chain diversification.