As global supply chains restructure, Thailand, Indonesia, Vietnam, and Malaysia are absorbing production capacity from China’s automotive, electronics, chemicals, and equipment manufacturing sectors.
Southeast Asia has become an attractive destination for Chinese manufacturers expanding overseas. Industry data from PSS Insight forecasts that the region’s MRO (maintenance, repair, and operations) market will exceed USD 58 billion by 2029, with annual growth remaining above 7%. Yet regional supply capacity is lagging behind production expansion, and media reports suggest many manufacturers expanding overseas have encountered substantial procurement obstacles.
China’s MRO procurement system may be mature, but it cannot simply be replicated overseas. Fragmented local suppliers, inconsistent material standards, lengthy cross-border fulfillment cycles, and high compliance hurdles for hazardous chemicals can lead to factory shutdowns caused by material shortages, uncontrolled procurement costs, and inefficient cross-border material management. These issues have become bottlenecks for the stable operation of overseas production lines.
ZKH Industrial Supply, a global digital MRO industrial services provider, expanded its presence in Southeast Asia through local entities established in Thailand and Indonesia in 2025. In those markets, it has formed on-site teams, built regulatory-compliant warehouses, and accumulated supplier resources, while developing a supply model that combines a cross-border domestic inventory pool with local centralized procurement. The model is designed to address pain points faced by Chinese companies overseas, including cross-border sourcing, warehousing and fulfillment, customs compliance, and emergency supply support.
