Thought Leadership

The strategic rationale

The combination of Singapore, Vietnam, and Indonesia offers unique synergies that few other regional groupings can match. Together, these three countries provide access to free trade agreements covering 65 economies, reaching 60% of global population and 65% of both global GDP and trade.

• Singapore brings institutional strength, logistics excellence, and regional connectivity.

• Vietnam offers manufacturing prowess, competitive labor costs, and proven execution in electronics and consumer goods.

• Indonesia provides scale, natural resources, and access to the world's fourth-largest consumer market.

This triangular model addresses multiple strategic imperatives simultaneously: cost optimization, ESG compliance, geopolitical risk mitigation, and pandemic resilience. Companies can maintain high-level coordination in Singapore's stable regulatory environment while operating factories in cost-competitive locations just hours away.

Vietnam: The vertically integrated manufacturer

Vietnam's manufacturing credentials are impressive. The country has demonstrated consistent export growth of 15% year-over-year, with key product categories including electronics, footwear, and machinery. EU investors have shown particular confidence, with over 60% of their investments flowing into manufacturing sectors.

The northern corridor around Hanoi, Haiphong, and Bac Ninh hosts high-end electronics manufacturing and Apple supply chain components. Samsung and other major electronics manufacturers have established significant operations in this region. The southern area around Ho Chi Minh City, including Binh Duong province where Lego recently signed with Sembcorp, focuses on consumer products, consumer goods, and food and beverage manufacturing. The central region specializes in textiles.

Vietnam's industrial park infrastructure is extensive, with approximately 400 government-licensed industrial parks nationwide. These parks offer significant tax incentives: four years completely tax-free, followed by nine years at half the corporate tax rate. One US-based manufacturer recently observed that Vietnam's supply chain has become so vertically integrated that it influenced their site selection over Thailand.

Sembcorp's ready-built factories in Vietnam maintain occupancy rates between 90 and 95%, reflecting strong demand. The top investors in Vietnam remain Korea (accounting for 20% of GDP), followed by Japan, Singapore, and China.

Vietnam by the numbers

• 400 industrial parks nationwide
• 90-95% occupancy rate for ready-built factories (SembCorp)
• Korea accounts for 20% of Vietnam's GDP
• Tax incentives: 4 years tax-free, then 9 years at 50% rate
  

Indonesia: The resource-rich giant

Indonesia presents a different value proposition centered on its massive domestic market, abundant natural resources, and competitive labor costs. With 280 million people and monthly wages around $170, the country offers scale and affordability that few markets can match.

The government's downstreaming policy has transformed Indonesia's role in global supply chains. By banning raw nickel exports in 2020 and planning to ban bauxite exports by 2027, Indonesia is forcing value-added processing to occur domestically. This strategy has proven remarkably effective. Indonesia holds 43% of global nickel reserves and has attracted major investments from Hyundai, LG, and CATL for EV battery production.

Sembcorp operates two projects in Indonesia with plans to expand. The Kendal Industrial Park in Central Java, established in 2018 and granted special economic zone status in 2020, sold out its first phase within five years. The 860-hectare development has attracted electronics, fashion, automotive, and packaging manufacturers. Central Guoji International, the largest contract manufacturer for Nike and Adidas, took 40 hectares alone to employ 20,000 workers.

Special economic zones in Indonesia remain relatively rare—fewer than 20 nationwide compared to Vietnam's 400 industrial parks—but the government is actively expanding this program. The BYD plant in Subang Metropolitan represents the scale of investments Indonesia is now attracting, occupying approximately 100 hectares.

Sembcorp's newer project in Batam, located just 20 kilometers from Singapore, targets low-carbon manufacturing and high-end electronics. This proximity to Singapore enables easy coordination between headquarters and manufacturing operations, with executives able to visit facilities via a short ferry ride.

Indonesia's competitive advantage

• Labor costs: $170 USD per month
• 43% of global nickel reserves
• 280 million population
• 68% of population at productive age

The partnership model

What distinguishes this approach is the service ecosystem being proposed to international accounting and advisory firms. Rather than simple referrals, the model envisions deep collaboration where the client's home-country advisor maintains the headquarters relationship while InCorp and partners manage regional operations.

The proposition includes revenue sharing with referring firms (approximately 0.3% of asset value) recognizing that clients require sustained support in their home markets as they expand regionally. Speed to market is emphasized as a critical advantage, with pre-configured assets meeting ESG requirements and rapid approval processes through established government relationships.

Sembcorp's projects are supported by renewable energy infrastructure, including rooftop solar, solar farms, and carbon credit programs, addressing the ESG requirements that increasingly drive corporate decision-making. The company's 50% ownership by Temasek, Singapore's sovereign wealth fund, provides stability and long-term commitment that private developers may not match.

Looking ahead

As global companies continue reconfiguring their supply chains, the Singapore-Vietnam-Indonesia corridor offers a proven model combining governance, execution capability, and cost competitiveness. With hundreds of billions in infrastructure investment planned across these three countries through 2030, the momentum appears sustainable. For companies seeking alternatives to concentrated China exposure, this triangular approach provides both diversification and performance.