The Australian National Center for Asian Proficiency at the University of Melbourne says countries like Thailand should be more than just holiday destinations, they should attract the attention of small businesses looking to export and capitalize on their fast-growing economy. .
Lee Howard, CEO of Asia Link Business, said the easing of ties with Beijing puts China back on the agenda, while larger, closer consumer markets look for the next wave of opportunities. It is said that it is attracting the attention of Australian companies that are
From Vietnam’s thriving new fintech sector to Indonesia’s emerging global powerhouse hungry for service and innovation, Australian businesses need to double down and understand these markets.
“Several Southeast Asian economies are projected to grow faster than China as growing consumer bases draw businesses to the region,” says Howard.
“With a population approaching 700 million people and an economy more than twice the size of our country, Southeast Asia offers many new growth avenues for Australian businesses. ”
Here are the top 5 countries worth considering for your business export opportunities in 2023.
Vietnam: A thriving fintech sector with untapped potential of 100 million consumers
Vietnam is a rising star.
Since opening its economy, Vietnam has experienced one of the highest GDP growth rates in the world. It is also one of the countries that has greatly benefited from regional diversification and the “China Plus” strategy adopted by many international companies. As a result, investment in the country has surged, ripe for innovation, and spurred a thriving technology ecosystem.
In order for the Vietnamese government to make the country a more business-friendly place, Prime Minister Minh Trinh said, “We will promote the updating, connecting and sharing of digital platforms and databases, including connecting government information and governance centers with national and professional databases. Prioritize acceleration. ”.
With a young and mobile population, rapid economic growth, and over 100 million (increasingly tech-savvy) consumers who are ready to embrace new technology offerings, Vietnam is one of Southeast Asia’s most exciting digital and technology markets. Emerging as one.
Vietnam’s fintech sector is thriving. The low penetration of traditional banking means that many consumers are taking the technology “leap” and moving directly to e-wallets and payment apps. It also powers vibrant new sectors across the technology ecosystem, including AgTech, HealthTech, and EdTech. These will continue to attract more and more interest and investment for new entrants, including start-ups.
Malaysia: A familiar proving ground for expansion
With its strategic location, multilingual workforce and cost competitive business environment, Malaysia is an attractive destination for many Australian business travelers.
Despite its rich and diverse culture, Malaysia has a federal heritage and therefore a legal and regulatory system that is familiar to newcomers from Australia. It’s also a good place to do business in terms of establishing a presence and accessing resources, including human capital.
Malaysia is often an ideal starting point for Australian companies looking to expand regionally in Southeast Asia.
This may explain why more Australian companies export to Malaysia than India, Japan or Indonesia. Over 3,800 Australian companies do business with Malaysia, most of which are SMEs.
Many Malaysian consumers are familiar with Australia and appreciate Australia’s quality goods and services, including food, education, healthcare and professional services.
Indonesia: an emerging global power
With the largest economy in Southeast Asia and the fourth most populous country in the world, Indonesia is an emerging powerhouse.
In recent years, Indonesia’s GDP has grown to Growing at a pace of over 5%. .
Australia-Indonesia trade ties are on the rise, but two-way trade remains below $20 billion annually.
Historically, both were resource-based economies and competed for industrialized markets, so this had a lot to do with their lack of complementarity. But that paradigm is outdated. The rapidly changing Indonesian economy, hungry for service and innovation, is a completely different proposition. Business culture and governance issues often present challenges to solve, but the breadth and scale of Indonesia’s growth trajectory is compelling.
GDP and population combined show the potential for significantly improved trade ties, and Australian businesses could play a major role in this future growth.
Singapore: A $4 Trillion Hub
Singapore is known as one of the most dynamic and business-oriented countries in the world. A small island with limited natural resources, the city-state offers excellent connectivity, world-class infrastructure, quality human capital, and a reliable regulatory environment.
Businesses in Australia are welcome, but must assess the important role of government, the cost of doing business and the highly competitive commercial environment in which they enter.
Singapore is Australia’s largest trading partner in Southeast Asia and one of Australia’s strongest economic partners. Service-related industries, advanced engineering and manufacturing, healthcare and medical technology, energy and technology exporters will benefit from strong ties between the two countries.
Singapore’s status as a global financial hub cannot be underestimated. Banking, insurance, wealth management and investment firms from all over the world. Both institutional and individual investors are bringing capital to Singapore. The wealth management industry currently oversees approximately $4 trillion in investments.
Thailand: More than Just a Vacation Destination
It is often overlooked that Thailand is the second largest economy in Southeast Asia. It is also highly industrialized, with the industrial sector making up her third of the economy.
Thailand is a hub for international car brands as well as manufacturers of electronics, computers, furniture and plastic products. We are also seeing an infrastructure boom as the government invests in mega-projects across railways, roads and ports to increase connectivity.
This is further enhanced by Thailand 4.0, a government initiative to achieve industrial, economic and digital transformation across the country. This draws expertise from across the region and provides Australian services his providers the opportunity to join this modernization his push.
The Thai economy has been hit hard by the pandemic due to the important role that contact-intensive sectors – tourism, travel and hospitality – play in the Thai economy. Tourism traditionally accounts for 20% of GDP and 20% of employment. Covid-related travel restrictions have resulted in significant unemployment.
A resurgence in the tourism sector is set to improve from 2023 onwards, boosting Thailand’s demand for high-quality Australian food and beverage exports. This is reinforced by a domestic population that pays more attention to what they consume and a large food manufacturing sector that sources ingredients from around the world, including Australia.
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