Hanoi (VNA) - On September 19, HSBC experts shared insights on the trade and investment relationship between ASEAN and China, emphasizing the impact on Vietnam as both an ASEAN member and a trade partner with China.
According to Ahmed Yeganeh, ASEAN is increasingly appealing to Chinese businesses, largely due to its growth opportunities. These companies are ahead of their global counterparts in engaging with Southeast Asia.
A survey of 3,500 global businesses conducted by HSBC last year found that ASEAN's skilled workforce, growing digital economy, competitive wages, and relatively large regional market are key attractions, with Vietnam standing out.
ASEAN is already China’s largest trading partner, offering diverse growth opportunities thanks to strong economic fundamentals, advanced production capabilities, efficient supply chains, cultural similarities, and a growing middle class.
HSBC experts further analyze that China is one of Vietnam’s leading trade partners, with bilateral trade surpassing 106 billion USD, particularly in electronics, textiles, and machinery.
According to the 2023 e-Conomy SEA report, Vietnam has the fastest-growing digital economy in ASEAN, with a remarkable 20% growth rate. In terms of gross transaction value, Vietnam is poised to become the region’s second-largest digital market by 2030, just behind Indonesia.
Amanda Murphy, HSBC’s Head of Commercial Banking for South and Southeast Asia, stated that ASEAN is overtaking China as a top destination for foreign direct investment (FDI) in manufacturing.
Even China is channeling more investment into Southeast Asia, a trend that is also impacting Vietnam as a key member of ASEAN and a key trade partner with China.
In Vietnam alone, leading Chinese companies have ramped up investments, with nearly 20% of new FDI in 2023 coming from China, making it the largest source of investment in the country.
Amanda Murphy further noted that Chinese investment in ASEAN is not just about low-cost assembly but includes advanced manufacturing, technology, and even professional services.
Ahmed Yeganeh, Country Head of HSBC Vietnam’s Corporate Banking, adds: “We’ve observed this investment trend within our own client base. In 2023, the number of Chinese businesses entering new markets in Southeast Asia grew by 80% compared to 2022. Our Chinese clients are most interested in expanding to Singapore, followed by Vietnam, Thailand, Malaysia, and Indonesia.”
In terms of trade and investment, experts conclude that ASEAN and China’s collaboration is clear. Over the past few decades, China has taken the lead in many sectors shaping today’s economy, such as digitalization, advanced manufacturing, renewable energy, and electric vehicles.
ASEAN’s growth means the region is now in a position to either produce or develop products in these areas and has a significant demand for them. Proximity and complementary strengths will continue to drive growth in the ASEAN-China economic relationship./.
