Why has Southeast Asia become a new hot spot for Chinese investment?

1. Market size

There is a huge market due to the large population. Moreover, as the number of wealthy families in major countries (Indonesia, Thailand, Malaysia) increases, consumption will also increase. Attracted by such a large and thriving market, I believe few people will not be tempted. And with the establishment of the ASEAN Community Market in 2015, investment in any country in this market can begin to radiate to the entire ASEAN. In other words, investing in one country means investing in the community of the entire ASEAN. The era of the market has arrived.

2. Population age

Due to cultural concepts, in at least two major countries, Indonesia and Malaysia, the people are still very willing to have children. However, due to medical and other reasons, the aging population does not Without a majority, we have a population structure comparable to that of China in the 1980s, with a large and cheap labor force, which also means that it can be constantly replenished. With the popularization of education, the level of education has been improved, and the children of the elite who studied in Europe and the United States have begun to return, so it is not difficult to find middle management from the local population. Foreign companies only need to station senior managers and some middle managers.

3. Policy

ASEAN as a whole has signed free trade agreements with many economies, such as China, India, Australia, Japan, South Korea, etc. Goods produced in ASEAN are sent to other countries. Why not enjoy tax benefits? Decentralized to each specific country, there are also many free trade agreements. Coupled with the pleasant climate, it is very suitable for starting work and working overtime all year round. . . As a result, goods continued to be exported to all parts of the world.

4. Social status

Although the rule of law is unclear, the current major ASEAN countries, Indonesia, Thailand, Malaysia and China are still very similar, and the public’s ability to accept foreign things is still very high. Strong infrastructure, inconvenient but vigorously (slowly) construction, developed mobile Internet among elites, etc. are not unfamiliar to Chinese-funded companies, nor are they familiar to European, American and Japanese companies that are comfortable investing in China. Calculation is difficult. And I personally feel that compared to other less developed regions (Africa and Latin America), the social security here is pretty good. . .

5. Chinese identity emotions

This may only be useful to Chinese-funded institutions. There are a large number of Chinese in Southeast Asia. Although the younger generation basically has little understanding of China, as long as you really get into the local society, you will find that the Chinese still adhere to many Chinese traditions, so they will have more or less different expectations. Let’s focus on Malaysia and Singapore. After all, these are the places in Southeast Asia where Chinese culture is most intact, and they are also places where they care about their Chinese identity. Malaysian Chinese are still somewhat proud of their Chinese identity, so they are more open to investment and cooperation with Chinese businessmen.

The above is provided by the public account Mingliang Overseas Comprehensive Network, I hope you will adopt it, thank you.