One number, with a defined boundary.
Across completed RakSiam cost-down programs for which a comparable incumbent baseline is available, customers average an 18% reduction in recurring landed cost. A program enters the calculation only when the old and new cost bases can be normalized to a like-for-like scope.
The underlying program count, calculation records, and commercial documents are maintained in RakSiam’s internal claim-support file and can be reviewed during qualified diligence under appropriate confidentiality controls. They are not published because they contain customer, supplier, part, route, and price information.
What must be normalized before the math is useful.
If a material input differs, the comparison is reconciled or excluded—not quietly treated as savings.
Specification
Approved drawing or part, revision, function, critical interfaces, performance, packaging, and evidence requirements.
Commercial basis
Comparable annual volume, release quantity, currency, payment terms, quote validity, and Incoterm.
Delivery basis
The same country of origin, route assumptions, named destination, freight scope, and recurring destination costs.
Import treatment
The classification, customs value, ordinary duty, additional tariff, fees, and importer-of-record assumptions used at the time.
Cost boundary
Recurring landed cost is separated from tooling, samples, qualification, launch freight, and other one-time costs.
Evidence
The incumbent comparison and RakSiam quote are retained with the program calculation; confidential records are not posted publicly.
Why 18% is plausible—and why market research does not prove it.
There is no credible universal answer to “how much does sourcing from Southeast Asia save?” Public models vary by product, country, destination, trade treatment, and date. BCG’s 2022 landed-cost index placed selected Southeast Asian countries roughly 9% to 21% below a U.S. manufacturing baseline for goods delivered to the United States. Its Thailand index implied about a 20% gap and Vietnam about 16% in that modeled period.
More recent BCG automotive examples describe 15% to 20% landed-cost differences between lower-cost manufacturing locations and higher-cost destination markets, while warning that tariffs of 10% to 25% can erase the advantage. BCG also reported direct manufacturing costs in Indonesia, Thailand, and Malaysia at 10% to 15% below China in its ASEAN analysis.
Those figures are external context only. They do not validate RakSiam’s 18% figure and should not be applied to a specific RFQ without a product-level landed-cost model.
Public research used for context
Model your own comparison.
Use the calculator to assemble a recurring landed-cost stack, then bring the result and your specification to an RFQ.
Last reviewed August 31, 2026. Historical results can change as the underlying completed-program population changes. Contact RakSiam with a diligence question.