In recent years, as the global economic landscape has evolved, a growing number of enterprises have been exploring greater globalization strategies. Southeast Asia has become a significant market for manufacturing enterprises looking to expand their overseas footprint. In response to this trend, Cushman & Wakefield, a leading global real estate services firm, hosted the Breaking into Southeast Asia, New Opportunities for China’s Manufacturing & Logistics Industry forum, held in Shanghai and Shenzhen on October 21 and October 24.
Cushman & Wakefield representatives from Greater China, Indonesia, Malaysia, Singapore, Thailand and Vietnam attended the forums on investment and development opportunities in Southeast Asia.
At these forums, Cushman & Wakefield’s Logistics & Industrial teams from key Southeast Asian markets Indonesia, Malaysia, Thailand and Vietnam, were joined by leading industrial park developers, law firm professionals and Chinese enterprises to discuss key issues in industrial investment and development opportunities in Southeast Asia markets.
Trang Bui, Country Head, Cushman & Wakefield Vietnam said, “Over the past 30 years Vietnam has established itself as one of the leading manufacturing hotspots within Southeast Asia. From just 335 hectares of land dedicated to industrial parks, Vietnam now boasts almost 150,000 hectares in 2024. This phenomenal growth can be attributed to Vietnam establishing itself as an export-driven economy, creating dedicated Industrial and Economic Zones, and to its young, talented, cost-effective workforce. With these attractive features, Vietnam can confidently compete as a manufacturing powerhouse for the entire Southeast Asian region.”
Southeast Asia Markets Highlights
Southeast Asia continues to be a magnet for foreign capital. Last year, inward foreign direct investment to the region reached a record US$229.8 billion, with China accounting for US$17.3bn, an 18.9 percent increase on 20221. The region is on track to see growth between 4.6% and 4.8% per year between 2024 and 2029; with exports from the region expected to surge nearly 90 percent by 20312 (contrasting strongly with overall global trade growth of less than 30 percent) as global manufacturers look to diversify their supply chains and explore new markets.
Dennis Yeo, Head of Investor Services and Logistics & Industrial, Asia Pacific, Cushman & Wakefield said, “COVID highlighted the importance of diverse, resilient supply chains. As global manufacturers respond by expanding and diversifying their manufacturing footprint, markets like Thailand, Malaysia, Vietnam and Indonesia stand to be among the greatest beneficiaries, resulting in economic growth and improvements in infrastructure that will strengthen the region as a whole.”
1 https://data.aseanstats.org/fdi-by-hosts-and-sources
2 https://www.weforum.org/agenda/2024/06/why-asia-s-time-is-now-whats-fueling-asian-growth-and-what-does- it-mean-for-the-rest-of-the-world/
