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Southeast Asia is one of the prominent actors in world trade in the past. Its
production ranges from spices in history to microprocessors today. The eleven-country landmass bracketed as southeast Asia is building up its momentum to join
the world in the ranks of nations delivering good economic development for the past
decades. Singapore and Indonesia among others have done excellent and these
countries are booming investment hubs in present times. Low inflation is also a
common feature of these economies which accounts for an easy way to flow
investment in these countries.
To fall for any place, there must be certain features that attract foreign investors
the inflow of money. There are four factors reported by World Bank Group that
encourage or compels corporates to put in their shares: first is the occurrence of
Natural Resources, second is its market structure, third is efficiency and fourth is
their strategic assets which include technologies or leading brands operating within
the country.
Excelling in these criteria, the Southeast Asian countries are now developing into an
emerging market-leading the dynamic world.
Besides these factors, there are several other reasons that have opened gateways
to the trade.
The embracing attitude of southeast Asians towards the English language is the key
countenance that led to channelizing traffic. A huge population and availability of
Inexpensive labor has turned it into a business-oriented hub. Also, the diverse
region with rich culture and heritage sites is successful at attracting tourism
worldwide.
Under the influence of the Globalization trend, the foreign direct investment policies and
corporate laws altered by respective governments have become the major driving
force foreign investors to pool in their funds.
From hiring ambitious workers from Vietnam to the building of skyscrapers in
Singapore to the untapped natural resources of Cambodia and the stunning scenic
beauty of Indonesia is the part of an endless list of what Southeast Asia has to offer
to the outer economic world. When talking about development, digital progress
cannot be ignored rather it has become a symbol of prosperity. The booming of
digitalization conspicuously in Indonesia, the Philippines, and Vietnam has done
wonders in turning the game of economy in their favor. The accessibility of mobile
and the internet has doubled their performative assets. Since the Internet market in
Southeast Asia, already worth more than US$ 50 trillion, is expected to continue
rising in the coming years, it should be one of the key beneficiaries of this growth.
Nonetheless, Malaysia and Singapore are doing a great job at harboring diversified
Over the past 10 years, there is almost a 5 percent rise in their GDP every year.
The report of the World Bank of 2016 states that these top six are leading countries
that makeup 95 percent of overall ASEAN GDP. As companies shift all or part of their
production lines into Southeast Asia, ASEAN countries are seeing growing
investments due to the fallout of the US-China trade war.
This article analyses the investment opportunities for the Southeast Asian countries
by highlighting the domains that have growth potential in 2021.
Multiple free trade agreements have been ratified by ASEAN (FTAs).
Let’s have a discussion of each topmost country that is going to be the most
beneficial in terms of investment.
Among all the places on the continent, there is a club of few countries that have
outperformed others. The topmost region of SouthEast Asia that could be the
best choice for investors to invest in are listed below.
Singapore
With a politically stable reputation, a wealthy landing in the global landscape, and a
strong labor force, Singapore has emerged as one of the strongest economies in the
world. The country is known for its ease of doing business adopting a policy of no
dividend or capital gains taxes and many free trade agreements that open up a huge
market. Singapore comes at the top globally when it comes to investment. With a
GDP growth rate forecast of 3.2% for 2021, a low unemployment rate, and a
booming manufacturing sector, it can be a haven for investment. The manufacturing
sector grew by 6.6% in 2020, buoyed by the biomedical manufacturing, precision
engineering, and transport engineering clusters as other sectors contracted in wake
of the COVID crisis, stabilizing demand in the economy in general. AS more
businesses move online, information and communication sectors are also growing
the economy. Investing in the above areas can be highly profitable.
Indonesia
A nation endowed with plenty of land and sea resources like petroleum and timber,
Indonesia ranks in the top 5 fastest emerging economies in the world. With a
significantly high demographic dividend, the country is creating a large demand for
resources in the economy. Besides, rapid urbanization has been a prominent feature
of the country in the past decade. Indonesia is exporting commodities and has a
growing demand in the economy with a cheap labor force to process the demand.
This makes the economy lucrative to foreign investments. The country is expected to
grow by 5.4% in 2021 despite the contraction in 2020. Sustained demand for Palm
oil and metal ores has successfully countered the contractionary effects of the
decrease in exports and services in the economy. Overall, the growth of demand,
cheap labor, and a heavy endowment of commodities make it profitable to invest in
the Indonesian economy.
Vietnam
Building on the remains of a devastating war, Vietnam has gone through a process
of miraculous recovery in the past 40 years. The doi-moi reforms have changed the
economic landscape of the country which was a call for a socialist-oriented market
economy. With increased international trade, wealth levels grew in the economy. It is
now the fastest-growing economy with a growth rate of about 7%. The country’s
demographic dividend, the emergence of a growing middle class, and rapid
urbanization have changed things for the better. It is a leading exporter of clothes
and textiles in the world and has great economic ties with the Asian giant China. This
makes the country an investment hub and thus ranks top among other southeast
Asian nations in investment.
Thailand
One of the founding members of the ASEAN, the economy enjoys great ties with the
other southeast Asian nations. Being blessed with a geographical incentive, its
location helps greater trade with the neighboring countries. The country exports
extensively based on its free trade agreements with several countries like India,
China, and other ASEAN nations. The Thai government has prioritized the
development of its major exporting industries like Automotives, Information and
communication technology, Agro-Industry, fashion, and alternative energy. The
economy is by far the largest producer of automobiles in southeast Asia. The nation’s
rich natural endowments help in the development of a thriving agro-industry.
Thailand’s economic exposure makes it an investment hub and its vibrant growth
promises profitability.
Besides these four, other southeast Asian nations have also been growing rapidly
like the Philippines and Brunei. The developing status of these nations ensures
cheap labor and the growing demand for a rising middle class. This drives investment
and the article compiles a list of the top countries for you.
References
ASEAN. n.d. . Bank, Asian Development. LOCKDOWN, LOOSENING, AND ASIA’S GROWTH PROSPECTS. n.d. . Nag, Oishimaya Sen. The Richest and Poorest Countries of Southeast Asia. 2019.