New strategies for Southeast Asia
— Press release —
Although China remains an economic partner for Germany, the country wants to ensure certain independence. More and more German companies are speaking out negatively about lack of demand and the global impact of supply chain disruptions. The Ukraine war situation also contributes to this situation. According to the business climate survey carried out by the European Chamber of Commerce in China (EUCCC) in June 2022, 11% of member companies plan to relocate investments from China to other countries. The target region is Southeast Asia. According to the evaluation of the Chamber of Commerce Abroad, India, Malaysia, the Philippines and Thailand are the main countries where German companies would like to operate. A good supplier structure, availabilities and lower labor and energy costs play a decisive role. Indonesia and Vietnam, on the other hand, are losing their value as attractive investment locations for Germany. The reason for this is constant changes in the framework conditions. According to the EUCCC survey 45% of companies are looking for alternatives in Asia, with just under a third planning to relocate back to North America or Europe.
Overall, the outlook for German companies in Southeast Asia is promising and there are many opportunities to benefit from growth in the region.
(Source: Asia Bridge)