High-growth industries, such as renewable energy and electric vehicles (EVs), have been spearheading the move away from China, according to Michael Ignatiadis, Head of Manufacturing Strategy, Asia Pacific, JLL.

“For instance, Thailand, a long-established automotive powerhouse, is now experiencing a new wave of investment in EV production fueled by global demand,” says Ignatiadis.

Take Chinese EV giant BYD, which pumped 17.9 billion baht ($500 million) to set up a new facility in Thailand to produce 150,000 EVs annually starting from this year. In January, Chinese car manufacturer Great Wall Motor also began manufacturing its Ora EV in its factory in Rayong, Thailand.

EV production continues to accelerate while the Thai government ramps up efforts to lure automakers as part of its 2030 target to convert 30% of its annual automotive production to zero-emission vehicles.