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Why the "Southeast Asia Investment" is particularly popular?

May 07 2019

The Southeast Asian market has been very popular in the past two years. After China and India, the Southeast Asian market has become an emerging blue ocean market. With its huge demographic dividend and steady GDP growth, it has attracted large enterprises and e-commerce platforms to invest heavily in Southeast Asia.

Southeast Asia consists of 11 countries: Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Indonesia, Brunei, the Philippines and East Timor.

In the past, European countries and America were deeply favored and sought after by everyone. Whether it is overseas home ownership or immigration, European and America are undoubtedly the first choice for everyone.

With the increasing threshold of investment in Europe and the United States, and the influence of the economic situation and national policies, the popularity of the European and American countries has been reduced a lot, so these groups have begun to look for new investment opportunities.

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Southeast Asian Demographic

Southeast Asia has a large population density, and the current population has reached 630 million (including 60% of the youth population), accounting for 8.6% of the world's total population. Nearly 50% of them are urban population, and the median age is about 29 years old.

Under the severe trend of global aging, the working-age population in Southeast Asia will continue to grow until 2020. The advantage of the demographic dividend is conducive to the formation of a larger consumer market in Southeast Asia.

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Cheap Labor

Southeast Asia has a large population, and the youth population accounts for 60% of the total population. Its labor force is sufficient and cheap, and it will promote the improvement of manufacturing industry in Southeast Asia.

Take Indonesia as an example: the per capita wage in 2017 is only $300 per month, the average Chinese wage is $738 per month, while the US is $4,814 per month. With the help of low cost, Southeast Asia has great development prospects.

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Mobile Internet Technology Popularization

Southeast Asia is a land that full of unknowns and imagination. This area, which has a population of 650 million people, is still in the “original period”.

With the growing middle class and the increasing popularity of mobile Internet technologies, Southeast Asia has become the fastest growing market for Internet users worldwide. 

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Great Potential for Market Development

According to public information, in 2016, Southeast Asia's e-commerce retail sales accounted for 1.3% of total retail sales, far lower than China's 17.1%, and development is still in the “original period”.

Experts predict that by 2025, the total e-commerce market in Southeast Asia will reach 88 billion US dollars, with an annual growth rate of 32%. The total e-commerce market in all Southeast Asian countries will each exceed $5 billion.