Why Southeast Asia Has Become A Hotspot For Company Formation
If you have been following international business trends, you have seen Southeast Asia pop up every few days in discussions on growth markets. But it is not all talk. The region has the stats, the talent, and the infrastructure to support it.
The Southeast Asia region is one of the most interesting new markets to explore. In addition, it is also one of the best regions in the world to start a business right now. Here is why.
Economic Growth
As the rest of the world is slowing its growth, Southeast Asia continues to record fantastic GDP figures. Nations such as Vietnam, the Philippines, and Indonesia have been recording persistent growth rates above the world average.
This makes sense because of:
- Middle-class growth: Increasing disposable income will lead to increased consumption of goods, services, and digital goods.
- Resilience: The region has been one of the few that have withstood global economic shocks relatively better due to diversified economies and developed domestic markets.
This is to say you are breaking into an expanding market. However, every country here has its own company formation rules and licensing requirements. Engaging Ouzhou Consulting experts can make the process easy to navigate.
Young, Growing, and Skilled Workforce
The demography of Southeast Asia is a dream for business owners. Countries like the Philippines, Vietnam, and Indonesia have a median age of less than 30 years. That translates to:
- A highly innovative workforce that is willing to innovate and use new tools.
- Ripe economic productivity with a long runway before the population gets old.
- An abundance of talent pool for all things, including software development, to digital marketing.
A young and energized workforce is a major advantage for businesses that thrive on innovation.
Fast Digital Adoption
The most thrilling aspect is the transition to Southeast Asia’s digital economy. Over the past five years, internet penetration, smartphone penetration, and mobile payments penetration have exploded.
- Electronic commerce, fintech, and internet services are no longer on the rise but are now the new norm. For example, in Indonesia, Thailand, and Malaysia, mobile wallets have become the standard method of payment.
- Social media is used as a marketplace in Vietnam and the Philippines.
- Singapore and Malaysia are testing models of cross-border payment systems for regional integration.
This online-first world implies that:
- Businesses can target customers more quickly.
- They can grow in a more cost-efficient manner
- They can experiment with products.
All without incurring the expense of traditional brick-and-mortar operations.
Strategic Location And Trade Access
Southeast Asia is at the center of the international trade routes. Goods and services can move across borders more easily. This is due to the ASEAN Free Trade Area (AFTA) as well as other regional agreements. That is a major plus in case you want to expand into other countries other than the one in which you are launched.
The Bottom Line
Southeast Asia is uniquely positioned with a high growth economic rate, a young population, and a quickly growing digital environment. It offers a strategic opportunity to entrepreneurs and investors. And, in case you are considering forming a company, here is the time to put Southeast Asia on your shortlist.
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