According to a new analysis by Verisk Maplecroft, a UK-based risk intelligence firm, Thailand, the Philippines and Argentina are among several promising yet underutilised economies positioned for an increasing role in global supply chains. The report, released Thursday, indicates that these countries in Southeast Asia and Latin America stand to benefit from diversification as companies look beyond cost and efficiency to build resilience. A third of the world's busiest ports and airports are vulnerable to disruption from conflicts, environmental risk and domestic security threats, the firm warned. At a time when trade resilience has deteriorated in more than 150 countries — accounting for 90 per cent of global trade, there's an opportunity for "rising stars," the report argued. The shuttering of the Strait of Hormuz during the US-Israel conflict with Iran created "near-term headwinds" for both Thailand and the Philippines, as reported by the firm. Market openness, regulatory strengths and labour rights are the three main factors analysed in each country, with the firm's data indicating that those "willing to take a longer-term view will find these markets worth their attention."
Despite political turmoil including a corruption scandal in flood mitigation contracts that saw politicians issued arrest warrants, the Philippines offers significant potential for industrial services and outsourcing. As reported by Verisk Maplecroft, the country's young, English-speaking labour force provides substantial advantages. The graft scandal dented foreign investment last year and has contributed to the government cutting its economic growth forecast for this year. However, Laura Schwartz, senior Asia analyst at Verisk Maplecroft, noted that "things are still happening behind the scenes, including efforts to attract investment and reduce regulatory burdens on businesses — though the results of these efforts have yet to fully emerge." She explained that "sometimes political chaos completely stops policymaking, and sometimes it happens alongside policymaking." With a young, English-speaking labour force, the Philippines offers significant potential for industrial services and outsourcing, with Schwartz adding that "if you are confident in your company's supply chain management systems to monitor and manage corruption risk, that doesn't have to be a complete barrier."
According to Verisk Maplecroft's report, Thailand's electronics sector is benefiting from AI investment, positioning the country well for higher-value supply chain links. The firm noted that risks for Thailand have decreased compared with regional peers during the past five years. Despite an aging workforce and higher-cost labour compared with other regional competitors, Thailand's "ingredients are really good for a lot of the industries that are seeking supply chain diversification opportunities," as Schwartz explained. The country is "well positioned to host higher-value supply chain links," even with its current workforce challenges. The report emphasized that "Latin America still trails Southeast Asia as a scaled manufacturing platform, but Western efforts to reduce exposure to China are creating new supply-chain contenders," with the firm pointing to Vietnam, Malaysia, Mexico and Brazil as already benefiting from the reduction in bilateral trade between the US and China.
For Argentina, both the European Union-Mercosur trade accord and an agreement with the US on reciprocal trade and investment could drive a shift in critical minerals, energy and industrial exports. Chile and Uruguay are also featured on the regional list, with Uruguay offering the region's strongest risk-adjusted operating profile. The report emphasized that "Latin America still trails Southeast Asia as a scaled manufacturing platform, but Western efforts to reduce exposure to China are creating new supply-chain contenders." The report also points to Vietnam, Malaysia, Mexico and Brazil as already benefiting from the reduction in bilateral trade between the US and China, though it noted that "according to our data, risks to multinational supply chains in all of these jurisdictions are increasing."
According to Verisk Maplecroft's analysis, trade resilience has deteriorated in more than 150 countries — accounting for 90 per cent of global trade. The firm's data indicate that those "willing to take a longer-term view will find these markets worth their attention," despite near-term challenges. The report argues that there's an opportunity for "rising stars" as companies seek more resilient supply chains, with market openness, regulatory strengths and labour rights identified as the three main factors analyzed. The analysis comes at a critical time when global supply chains face increasing disruption risks from multiple sources including geopolitical conflicts and environmental risks.
