Relocating Your Business from China to ASEAN- Preview

2 A sean B riefing · Issue 16 · December 2019 Introduction Credits Publisher / Chris Devonshire-Ellis Managing Editor / Adam Pitman Editor / Ayman Falak Medina Design / Aparajita Zadoo Reference ASEAN Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2019 Asia Briefing Ltd. ALBERTO VETTORETTI Managing Partner ASEAN countries have become an alluring destination for Chinese-based businesses looking to relocate all or part of their production facilities amid the brewing US-China trade war. ASEAN was already China’s largest trading partner in the first half of 2019 as trade turnover increased by 10 percent from 2018 to US$294 billion; overtaking the US for the first time since 1997. Some investors, however, remain skeptical at the idea of relocating to an ASEAN country, citing the bloc’s lack of developed supply chains and infrastructure. While these are genuine concerns, ASEAN’s growth rates have stabilized at just over four percent in 2019. The bloc has also well-established trade networks, such as the ASEAN-China free trade agreement and is home to prominent international businesses engaging in conventional and nuanced industries. Additionally, ASEAN hosts a young and educated workforce and growing middle-class. In this issue of the ASEAN Briefing magazine, we begin by introducing the various incentives issued by ASEAN countries to attract investments from the spillover of the trade war. We then analyze productivity levels in ASEAN and what impact this has on businesses relocating to the region. Finally, we focus on special economic zones (SEZs) in ASEAN and their increasing importance in garnering foreign investments at a time of global economic uncertainty. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.vietnam-briefing.com www.silkroadbriefing.com www.china-briefing.com www.russia-briefing.com With kind regards, Alberto Vettoretti