Connect with us
Thailand Business Directory

Asean

Asian Companies to Focus on ASEAN countries in Next 10 Years

According to a new EIU report, Asia will focus more on opening new factories and offices in Southeast Asia and less on China in the next ten years.

Olivier Languepin

Published

on

According to a new EIU report, Asia will focus more on opening new factories and offices in Southeast Asia and less on China in the next ten years.

At first glance, Asia may seem perfect for itself. It is the factory floor of the world, producing nearly half of the world’s manufactured goods. End markets are increasingly no longer half a world away. By 2030, Asia will be home to 66% of the global middle-class population and 59% of middle-class consumption, compared to 28% and 23%, respectively in 2009, according to the OECD.

However, statistics such as these do not always provide a clear view of conditions on the ground. There are realities that make economic integration in Asia challenging. Despite some progress at the sub-regional level with initiatives such as the Association of South-east Asian Nations (ASEAN), broader multilateral trade and investment arrangements have faced obstacles such as nationalism and disparate regulatory standards.

The business landscape in Asia will change significantly over the next decade, as companies in the region focus more on new growth opportunities in countries such as Myanmar, Vietnam and Thailand, and less on China, says a new report from the EIU.

asean 10 years

Myanmar, Thailand and Vietnam to become top intra-Asian investment destinations

The report, integrAsian: How Asia’s economic ties are changing the business landscape, sponsored by ANZ Bank, is based on a survey of 525 Senior Executives in seven key markets in Asia and includes case studies from the energy, manufacturing and technology sectors. The report examines how companies in the region are adapting their business strategies to stronger intra-Asian trade and investment links.

Rising labour costs in China

Rising labour costs in China have been widely cited as a factor driving manufacturers to consider moving production to countries in the Mekong delta. The study shows that the services sector is also keen on expanding in Southeast Asia. In both the financial services and professional services industries half of the survey respondents say they are planning to open new offices in Myanmar in the next decade.

In the next five years, Asian companies are primarily targeting China, India and Malaysia to open new offices or to build factories. In the next ten years, they will focus much more on Myanmar, Vietnam and Thailand.

71 percent of respondents say they are planning to build a new factory or office in China in five years, only 23 percent will do so in ten years.

Myanmar, Thailand and Vietnam to become top intra-Asian investment destinations

Firms targeting Myanmar for expansion will nearly double from 22 percent in five years to just short of half in ten years. Similarly, companies planning to expand in Vietnam and Thailand over the next five and ten years will respectively increase from 30-38 percent and 31-36 percent.

Despite reduced new investment interest beyond the next five years, China’s importance as one of the drivers of the region’s economy will not diminish.

Companies in China are poised to take advantage of growing trade links with other parts of Asia, and 41 percent of Chinese firms say they have already adopted a single sales strategy for the entire region.

In addition, nearly one of every five respondents says they will use the renminbi to settle 20-50 percent of their payments and invoicing over the next five years, second only to the US dollar.

The report integrAsian: How Asia’s economic ties are changing the business landscape is available to download here, or visit integrAsian.economist.com for more information.

Comments

Vietnam

Foreign capital still heads to Vietnam

As many as 798 projects added a combined over 5.11 billion USD to their investment capital, down 23 percent year-on-year in project number but up 6.8 percent in value.

Avatar

Published

on

Hanoi (VNA) – The total amount of foreign investment poured into Vietnam this year to September 20 reached 21.2 billion USD, equivalent to 81.8 percent of the same period last year, reported the Ministry of Planning and Investment.

(more…)

Continue Reading

Asean

Inclusive business models offer relief for ASEAN businesses hit by COVID-19

Inclusive businesses provide goods, services, and livelihoods on a commercially viable basis, to people living at the base of the pyramid making them part of the value chain of companies as suppliers, distributors, retailers, or customers.

Asean News

Published

on

Inclusive business models offer relief for ASEAN businesses hit by COVID-19

BANGKOK, 29 September 2020 – The Third ASEAN Inclusive Business Summit convened today with government officials and business leaders advocating for inclusive business strategies that support micro, small and medium-sized enterprises (MSMEs) to recover from economic setbacks during the COVID-19 pandemic in the South-East Asia region.

(more…)

Continue Reading

Asean

In the Dragon’s Shadow: Southeast Asia in an Age of Rising Chinese Power

As China’s economy has surged and its leadership has asserted its power abroad, each country of Southeast Asia has been presented with a thorny challenge: how to benefit from the Chinese renaissance while safeguarding its sovereignty over the long term

Boris Sullivan

Published

on

The 11 nations of Southeast Asia stand uniquely exposed to the rising power of the new China: three share borders with the world’s most populous nation, and five are directly impacted by its claims over the South
China Sea.

(more…)

Continue Reading

Cart

Most Viewed

Events Calendar

« October 2020 » loading...
M T W T F S S
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
1
Thu 29

Vend ASEAN(Bangkok)Vending Machine & Self-service Facilities Expo 2020

October 28 @ 8:00 am - October 30 @ 5:00 pm BMT
Thu 29

Vend ASEAN 2020

October 28 @ 10:00 am - October 30 @ 6:00 pm BMT

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,071 other subscribers

Latest

Trending