President Trump’s aggressive tariff strategy and the ripple effects of post-pandemic nearshoring have forced global procurement leaders to rethink their sourcing maps. As businesses look to rebalance risks away from China-centric dependencies, emerging sourcing hubs across Asia, Latin America, and Eastern Europe are rapidly stepping into the spotlight.
From Vietnam to Poland, here’s a look at the countries making the biggest gains as procurement leaders pivot to new supply bases.
Top 10 Emerging Sourcing Hubs in 2025
1. Vietnam
Vietnam has cemented itself as a primary beneficiary of the shift away from China. The country’s manufacturing sector has seen remarkable growth, with merchandise exports reaching $405.53 billion in 2024, a 14.3% increase from the previous year. The country’s participation in trade agreements like the CPTPP and RCEP has further bolstered its appeal to multinational corporations like Samsung and Nike.
Companies can tap into Vietnam’s rapidly evolving supplier networks by working directly with partners in key industrial hubs like Ho Chi Minh City and Hanoi. Exploring co-investment models with local electronics and textile producers can help secure production slots while navigating trade shifts in Asia. Developing tailored supplier development programs, including language and digital skills training, will be crucial to sustain quality and flexibility as the ecosystem matures.
2. Mexico
For U.S. companies facing steep tariffs on Chinese goods, Mexico’s proximity and free trade status under the USMCA have made it a natural alternative. Auto manufacturers like Tesla and GM are deepening their Mexican footprints, while the country’s aerospace and medical device sectors are also gaining momentum.
Procurement leaders can integrate Mexico’s manufacturing base into just-in-time and just-in-case strategies for North American demand. Building early visibility into Mexico’s labor pipeline, especially in automotive and aerospace clusters, will give procurement teams an edge in balancing rapid demand shifts. Collaborating on cross-border logistics solutions, such as bonded warehousing and dual customs programs, can further reduce lead times and improve market responsiveness.
3. India
India’s push to become a manufacturing powerhouse is starting to pay off. iPhone exports from India to the U.S. jumped by 76% in April 2025 alone, signaling the success of Apple’s diversification efforts. India’s Production-Linked Incentive (PLI) schemes and infrastructure upgrades are drawing attention from electronics, automotive, and pharmaceutical procurement teams.
India’s supplier landscape varies widely by state, so procurement leaders can unlock real opportunities by tailoring sourcing strategies to local cluster strengths, like Tamil Nadu for electronics or Gujarat for chemicals. Co-locating design and procurement teams in India’s innovation hubs can also yield better responsiveness to shifting product specs.
4. Indonesia
Indonesia is emerging as a key player for low- and mid-tier manufacturing, particularly in apparel, footwear, and basic electronics. Nike and Adidas have announced capacity expansions here, attracted by Indonesia’s youthful workforce and supportive government policies.
For procurement leaders, Indonesia’s opportunity lies in leveraging its younger workforce and government-backed industrial zones to stabilize mid-tier production. Collaborating on shared logistics corridors can smooth infrastructure challenges and unlock efficiencies. Building long-term supply partnerships in Indonesia’s apparel and footwear sectors can also serve as a hedge against fast-rising labor costs in neighboring countries.
5. Poland
As European supply chains adjust to both tariffs and geopolitical tensions, Poland has become a reliable alternative for industries like automotive, furniture, and electronics. In 2024, Poland’s total exports were valued at $380.33 billion. The country’s deep ties to the EU, competitive labor rates, and strong logistics infrastructure have made it a favored choice for companies pivoting from China and Russia.
Companies can tap the country’s deep industrial networks to source high-quality components, particularly in automotive and heavy machinery. Integrating Poland-based suppliers into nearshoring programs for EU markets can reduce exposure to Asian supply disruptions. Poland’s engineering expertise also opens opportunities for procurement-led co-design of new components and systems to accelerate product innovation.
6. Thailand
Thailand’s automotive industry is a key player in Southeast Asia, with over 1.8 million vehicles produced in 2023, more than half of which were exported. Japanese and U.S. firms in particular are leaning into Thai operations to complement Vietnamese and Indonesian moves.
Thailand’s advantage isn’t just cost, it’s the country’s position as an automotive innovation hub in ASEAN. Procurement leaders can build new sourcing models that take advantage of Thai incentives for green and smart manufacturing. Collaborating directly with local tier-one and tier-two suppliers can secure better design-to-delivery timescales. Engaging in quality assurance programs jointly run with Thai suppliers will also boost mutual trust and product performance.
7. Malaysia
Malaysia is a significant hub for semiconductor manufacturing, hosting companies like Intel and Western Digital. The country commands 13% of global assembly, testing, and packaging (ATP) in the semiconductor industry.
Procurement leaders can leverage Malaysia’s stability and skilled workforce to secure advanced electronic components, particularly in semiconductors. Deepening ties with Malaysian contract manufacturers can help ensure rapid scale-up for high-tech programs. Investing in shared data platforms with suppliers, like traceability and automated testing, will be key to maintain quality and compliance in a globally competitive market.
8. Turkey
Turkey’s strategic location, bridging Europe and Asia, has positioned it as an attractive nearshoring option for European firms. Textiles, automotive components, and white goods have been key growth areas. Turkey’s customs union with the EU has also smoothed procurement routes for many multinationals.
In Turkey, companies can look beyond automotive and textiles to explore emerging opportunities in white goods and consumer electronics. Turkey’s unique geographic role as a trade bridge into Europe means procurement teams should consider regionally differentiated logistics solutions, like multimodal hubs or direct rail links. Proactively monitoring Turkey’s inflation and political shifts will also help adapt contract terms and protect profitability.
9. Brazil
Brazil’s potential as a regional sourcing hub is drawing attention, particularly for agribusiness inputs, processed foods, and automotive components. Companies like Nestlé and JBS have expanded local procurement as part of broader Latin American diversification strategies.
Brazil’s agribusiness supply base can be a source of innovation in food and beverage sustainability. Engaging directly with Brazilian cooperatives and agricultural clusters can unlock new flavors, packaging options, and farm-level ESG initiatives. Procurement teams should also build risk-sharing agreements with local suppliers to address commodity price volatility in agricultural and automotive components.
10. Philippines
The Philippines is seeing a quiet resurgence in electronics and semiconductor packaging, driven by strong links with Japanese and U.S. tech firms. Its labor costs remain competitive, and the government’s push for more transparent business practices is gradually improving supplier confidence.
Procurement leaders can use the Philippines as a strategic second-sourcing node for electronics, especially in assembly and testing for Japanese and U.S. tech partners. Exploring supplier-financed upgrades to facilities can boost capacity and reliability, while also fostering a more engaged supplier relationship. The Philippines’ English-speaking talent base is also a real advantage for building collaborative innovation programs that are aligned with global quality expectations.
Building Future-Ready Supply Chains
The search for emerging sourcing hubs is no longer just about cost arbitrage, it’s about building supply chains that can weather geopolitical storms and deliver consistent value to customers. The next step for procurement leaders is to integrate these new hubs into balanced, multi-node supply networks. This requires not just geographic diversification, but also stronger supplier engagement, real-time risk monitoring, and the courage to rethink long-standing assumptions about sourcing models.
