New Opportunities Arising for China’s Manufacturing & Logistics Industry in Southeast Asia
Mandy Qian • 25/10/2024
In recent years, as the global economic landscape has evolved, a growing number of China enterprises have been exploring greater globalization strategies. As a large trading partner, the Southeast Asia region has become an important market for China enterprises to expand their overseas footprint. In response to this trend, Cushman & Wakefield, a leading global real estate services firm, hosted forums on the topic of Breaking into Southeast Asia, New Opportunities for China’s Manufacturing & Logistics Industry, held in Shanghai and Shenzhen on October 21 and October 24.
At these events, Cushman & Wakefield’s expert Logistics & Industrial property services teams from Southeast Asian markets were joined by leading industrial park developers, together with experienced law firm professionals from Indonesia, Malaysia, Thailand and Vietnam, to discuss industrial investment and development in Southeast Asia markets.
KK Chiu, Chief Executive, Greater China, Cushman & Wakefield said, "We are excited to organize these specialist forums in partnership with leading industrial developers and experts from major Southeast Asia markets. The region has become a significant trading partner for China, and this integration has resulted in tremendous opportunities for Chinese manufacturers and logistics operators to take advantage of the region’s robust economic growth, demographic dividend and labor cost efficiencies.”
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 2022[1]. 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 2031[2] (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 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.”
Tony Su, Head of Industrial & Logistics Property Services, China, Cushman & Wakefield, added, “It is important for China enterprises to have a strong understanding of the local and regional investment environment, as well as the challenges and corresponding strategies when expanding their overseas footprint. At Cushman & Wakefield we can provide expert teams and a broad network to assist Chinese manufacturing and logistics companies to embark on their globalization journey.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
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