Potential countries for German companies to expand into

Potential countries for German companies to expand into

— Press release —

According to the survey of the Standard Chartered Bank "Borderless Business: Europe-ASEAN Corridor", many European companies operating in such sectors as infrastructure, manufacturing, pharmaceuticals, renewable energies and e-commerce consider the Southeast Asia as a potential expansion region. Thailand, Vietnam, Malaysia have developed into strong manufacturing countries. According to "Asia Bridge" magazine, the above-mentioned countries have not only strong manufacturing capabilities, access to the growing consumer market, free trade agreements, which enable an access to a global market and a great deal of opportunities as for manufacturing locations, but also can ensure the reliable supply chain base. Due to the Corona situation, there are more and more manufacturing German companies looking for more secure supply chains. That is why the Southeast Asian region is of great interest to German manufacturers as well as to other European producers. According to Heinz Hilger – CEO of Standard Chartered Bank AG, most investments will flow into energy, chemicals and pharmaceuticals as well as automotive sectors. Besides Thailand, Vietnam and Malaysia, Singapore also seems to be a promising country. The study showed that 77% of European companies are considering Singapore as a regional headquarters from which they could expand into the Southeast Asian market.

Alongside Southeast Asia, Eastern Europe remains an important region, especially for Germany. Only Poland is Germany's third largest supplier after China and the Netherlands. Furthermore, macroeconomic statistics point out that Poland, the Czech Republic, Hungary and Slovakia are considered to be Germany's largest trading partners. According to Handelsblatt, Eastern Europe is the continent's powerhouse. As stated by the President of the Eastern European Development Bank EBRD, Odile Renaud-Basso, the above-mentioned countries have shown higher growth than anticipated - 4.2 instead of 3.6 per cent. Poland, Hungary and Romania in particular are considered the powerhouse of the continent. Odile Renaud-Basso explained that the reason for such economic growth was the shorter lockdown during the first Corona wave. (Source: Asia Bridge, Handelsblatt)