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78 PCB007 MAGAZINE I OCTOBER 2025 data show electronics and engineering (E&E) repeat- edly topping new project applications, signaling a sustained pipeline and supportive policies. Pros include established estates, utilities, logis- tics, and a dense network of local suppliers and services. Policy tools are concrete: a 250% tax deduction for employer-provided training and siz- able Board of Investment (BOI) grants (up to THB 5 million or 50% of training costs). The govern- ment's Ignite Thailand plan targets 280,000 work- ers across semiconductors (80k), EV (150k), and AI (50k) in five years, which is helpful for firms plan- ning higher-tech ramps. What About the Workforce? Vietnam gains major points here with a clear "pro" in its demographics. Vietnam's 100.8 million popu- lation is relatively young, with a large 15–34 cohort, providing a broad pipeline for factory and techni- cian roles. World Bank data confirm a sizable work- ing-age population base. The cons are mainly tal- ent depth and skills alignment. Despite ~84,000 annual ICT (information communication technology) graduates, only about 35% are industry-ready with- out retraining, and a 150,000–200,000 engineer shortfall is projected for 2023–2025. That skills gap raises onboarding and training costs, especially for higher-value processes (advanced SMT, test, failure analysis, NPI). Though not as generous as those in Thailand, Vietnam is responding with ambitious vocational strategies, such as a national VET (vocational edu- cation training) plan, a semiconductor human- resources initiative, and an Investment Support Fund (ISF) that would reimburse up to 50% of train- ing costs for hi-tech firms. Policy momentum is a pro; execution time and institutional capacity are the things to watch. By contrast, workforce structure and demograph- ics are Thailand's chief "cons." Thailand has nowhere near the potential workforce numbers that Vietnam can boast, citing an acute skilled labor shortage and an aging workforce population. E&E employment is stable (~750,000), but the skills mix is skewed: ~82% low-skilled, ~16.5% medium-skilled, and only ~1.5% high-skilled. Training is greatly needed to address gaps in digital/advanced manufacturing skills, pres- suring wages and hiring cycles, and prompting increased reliance on imported labor. However, unlike Vietnam, which is still working to create advantageous incentives for foreign compa- nies to invest in its workforce, Thailand offers strong incentives for investment in training and upskilling, with up to a 250% tax deduction. While Thailand's policy incentives are robust, companies may need to budget for longer upskilling lead times and targeted recruitment strategies to secure engineers, quality specialists, and operations leaders. Tariff Exposure and Risk Mitigation Another evolving risk is tariff exposure in the U.S. market. Recent U.S. measures have increased duty risk and scrutiny of rules of ori- gin, with early trade data showing some near- term impact on Vietnam's U.S.-bound exports. Currently, a 40% duty rate is in place for goods identified as being transshipped through Vietnam, in lieu of the 46% reciprocal tariff that is also in place in certain circumstances. By contrast, Thailand has (at the moment) worked out a proposed 19% U.S. tariff on Thai goods and guaranteed the elimination of its own tariffs on over 10,000 imports from the U.S. also It has committed to streamlining its