7 Best Business Opportunities In South East Asia 

Asia is the world’s most populous region, home to approximately 4.5 billion people, or nearly two-thirds of all humans. It has experienced a considerable technological boom in recent decades, and its economies have remained largely steady. Many of the economies in the region are expanding more quickly than those of Western nations. According to recent projections, Asian economies will eventually overtake the rest of the world. Asia should be your next region to expand into for various reasons, including its fast economic growth and stability. 

South East Asia’s Best Business Opportunities 

 
Southeast Asia (SEA) is one of the most dynamic regions in the world, with the potential to become the world’s fourth-largest economy by 2030. With its diverse economies, geographies, and cultures, SEA is already home to global corporations such as Bytedance, Google, and Sanofi, as well as startups and innovators from various industries. 

But how do businesses thrive in such a vast region? Utilizing Brand Catalyser allows brands to enter the global consumer market by providing a go-to-market strategy to position your brand to navigate the foreign territory. Our market entry strategy includes the most effective method for your brand. We offer a cross-border solution tailored to your brand, from sales strategy to buyer’s journey planning to price strategy. 

The following are a few of Southeast Asia’s top business opportunities. 

1. Electronics 

The export value of most South Asian nations’ electrical products ranges from 20% to 50%. Nowadays, most of the world’s consumer electronics—including televisions, laptops, and smartphones—are made in Southeast Asia. For instance, more than 80% of the hard disks in the world are made here. The top Southeast Asian electronics producers are Vietnam, the Philippines, Malaysia, and Singapore. 

Vietnamese exports have grown significantly due to investments from businesses like Samsung, LG, Canon, and Nokia. These international businesses, drawn by tax incentives and some of Southeast Asia’s most significant export processing zones, have evolved into the core of Vietnam’s exports. 

Malaysia has developed into a significant worldwide manufacturing hub for electrical and electronic (E&E) products at the same time. Over the years, Malaysia’s electronics sector has investigated local outsourcing of non-core tasks and made significant R&D investments. Penang contributes 80% of Malaysia’s output of semiconductors to the world market. 

2. Clothing and textiles 

Vietnam has produced textiles and clothing for many years and has a long history. It is today one of the largest exporters in the world and continues to draw significant investment from international businesses. Most of the most well-known companies in the world either establish local manufacturing operations or source items from Vietnam. The luxury label Prada, The North Face, Fjällräven, Adidas, Nike, Sketchers, and Decathlon are a few examples. 

Although less well-known than Vietnam in Southeast Asia, the Philippines is another country with a significant textile and apparel industry. Companies may use the Philippines as an alternative when they cannot meet the minimum order quantity (MOQ) standards of factories in China, Bangladesh, Vietnam, and India. Most of the textile and apparel produced in the nation are sent to the US, with the remainder going to the EU, Australia, Canada, and other ASEAN countries. 

3. Automotive 

Thailand’s automotive manufacturing industry, established more than 50 years ago, has become one of the largest in the world. Nearly all major automakers and component suppliers have a presence in the area. Most of the two million automobiles produced in Thailand annually are made by Toyota, Isuzu, Honda, Mitsubishi, Nissan, and BMW. 

As the popularity of electric cars (EVs) increases, Thailand is up against Indonesia in this market. Indonesia has the greatest nickel deposit in the world and can provide affordable labor and EV battery rates.  

4. Infrastructure 

 

Since 2018, the cabinet of President Joko Widodo has prioritized infrastructure development. Renewable energy has a lot of potential. By 2025, the Indonesian government wants to utilize 23% renewable energy, and by 2050, it intends to use 31% renewable energy. 

Considering Indonesia’s huge potential for creating renewable energy, the objectives are pretty attainable. Because Indonesia has so many seas, it is possible to build hydroelectric power facilities and offshore wind farms. Indonesia also has a lot of resources for developing wind, solar, and bioenergy, including biomass and bio-residues. 

Indonesia enjoys year-round access to a plentiful supply of sunlight because it is a tropical nation. The ability of Indonesia to create solar thermal and photovoltaic energy is advantageous. These energy sources can support transportation, heating, and cooling applications regarding power generation. Each of these potentials in Indonesia presents excellent commercial prospects. 

Investing in Indonesia is the ideal choice due to the abundance of excellent business prospects there and the new government regulations that make obtaining company and investment licenses simpler. 

5. e-commerce venture 

It’s fascinating to watch the e-Commerce scene in Indonesia develop. With sales of US$2.7 billion last year, the nation had Southeast Asia’s highest online market transactions. With an estimated US$1130 billion in e-commerce sales in 2020, Indonesia is expected to be right behind China . 

Because of this, e-Commerce has emerged as one of Indonesia’s most potential commercial sectors. Not to mention that more and more Indonesian E-Commerce firms are beginning to succeed. 

With more than 17,000 islands spread across 34 provinces, Indonesia provides a wide range of travel experiences.  

6. Instructional services 

The need for high-quality education grows in tandem with rising median incomes. Parents may assist their children in receiving the best education possible by using apps and social networking sites specifically geared toward schools and educational initiatives. Young people must also learn new skills to prepare for a rapidly evolving global job market. Consider providing more education to students and professionals through online or in-person classes in computer programming, digital marketing, technology, and English. 

7. Machinery 

Malaysia is the leading producer of automation equipment and specialized process machinery for the E&E industry. However, the industry only produces components or acts as an OEM producer rather than entire products. 

A few subsectors are expanding, especially those that deal with metalworking and power generation equipment. Advantest, Pentamaster, Vitrox, Muehlbauer, SRM, and UMS are among the businesses with established manufacturing operations in Malaysia. 

Bottomline 

As global businesses search for alternate supply markets to China, Southeast Asia receives a lot of interest. Southeast Asia is a key sourcing market due to its lower labor costs, improved manufacturing capabilities, diversification, and numerous trade agreements. If you want to expand a business around a glob you need a partner who can better understand the business architecture. If you have a business and want to expand around a Asia market you can find a co-founder through Ziga Business partner app. 

The most frequently mentioned nations for manufacturing are Vietnam, Indonesia, Thailand, the Philippines, Malaysia, and Singapore. We have also emphasized how some nations are experts in particular fields, as seen in the large electronics exports from countries like Vietnam, Malaysia, the Philippines, and Singapore. On the other hand, Thailand and Indonesia are significant makers of automobiles and related components. Southeast Asia will continue to be attractive to international investors, but it will also need to rely less on imports while offering more business value-added activities.