General

Southeast Asia is located to the south of China, bordering Bangladesh and India, connecting three continents and two oceans. It is at a crossroads, and its land area is close to half of China. In recent years, with its rapid economic growth and huge demographic dividend, it is attracting global capital to "fly southeast". Chinese companies have also gone overseas, including some foresighted professional market operators.

In the first half of 2021, my country's imports and exports with the top three trading partners, ASEAN, EU, and the United States, were 2.66 trillion, 2.52 trillion, and 2.21 trillion yuan, respectively, up 27.8%, 26.7%, and 34.6%. During the same period, my country's imports and exports to countries along the “Belt and Road” and RCEP trading partners increased by 27.5% and 22.7% respectively.

Moreover, China has maintained the status of ASEAN’s largest trading partner for 11 consecutive years. In addition to the formal signing of the Regional Comprehensive Economic Partnership (RCEP) last year, the Southeast Asian market appears to be particularly important, and the dividends make people particularly jealous. .

Southeast Asian countries are referred to as ASEAN for short, and there are 10 countries among them, in order of GDP size: Indonesia, Thailand, Singapore, Malaysia, Philippines, Vietnam, Myanmar, Cambodia, Laos, Brunei. The total population of each country is currently approximately 660 million. If the neighboring countries of India, Pakistan, and Bangladesh are added, the total population exceeds 2.5 billion, which is nearly twice that of China, and the huge population also brings endless business opportunities.

PricewaterhouseCoopers analyzed in its report in early October last year that most ASEAN countries are still in the early stages of economic development and their economic foundations are relatively weak. With the rapid development in recent years, the living standards of the local people have improved significantly, and the demand for and consumption of various products has continued to increase.

At present, ASEAN can be divided into three echelons according to the level of economic development:

First echelon

Singapore and Brunei

These two countries have complete infrastructure construction and economic systems, but limited by their land area and high labor costs, the industrial volume is relatively small, and they are mainly concentrated in high-end manufacturing industries.

Second echelon

Malaysia and Thailand

The industrial foundations of these two countries are relatively complete, and their citizens have a relatively high level of education. Coupled with the accumulation in the past few decades, they have formed a complete supply chain system in certain specific fields and are highly competitive.

Third echelon

Indonesia, Philippines, Vietnam, Myanmar, Cambodia and Laos

The industrial base of this echelon country is relatively weak and the level of national development is relatively low. However, thanks to its abundant labor population and low labor prices, it is highly competitive in labor-intensive industries. These countries are regarded by many foreign investors as the next China, attracting a large amount of foreign investment and rapid economic growth.

Before the outbreak of the new crown epidemic, the average annual GDP growth rate of ASEAN countries remained at around 5% for many years, and ASEAN has been regarded as "one of the best economically performing regions in the world" for a long time.

However, due to the "black swan" of the new crown, five of the six major ASEAN member countries, including Indonesia, Singapore, Malaysia, the Philippines, and Thailand, will experience negative growth in 2020. Only Vietnam is "outstanding" and maintains positive growth, but the growth rate is also significantly reduced. Slow, only 2.9%.

However, all parties generally expect that the economies of ASEAN countries will turn to recovery in 2021 like the rest of the world, and the momentum will be stronger. After all, the basic local advantages have not changed.

With the uncertain prospects of Sino-US trade relations, RCEP undoubtedly gives China more confidence. There are bound to be more bright spots in the cooperation between China and ASEAN.

In addition, the Southeast Asian e-commerce industry has been gaining momentum in recent years. From the beginning of the bonus market and the blue ocean market, it has developed into the world’s most advanced e-commerce market. Domestic Internet giants have already deployed themselves in the Southeast Asian market. Power, the opportunities here are also worthy of everyone.