Chongqing - "Southeast Asia is at the heart of global crossroads, and the opportunities for its future partnerships with China are immense," proclaimed Mars Wei, general manager of Cushman & Wakefield Chongqing, in an exclusive interview with Bridging News recently.

Wei believes the New International Land-sea Trade Corridor (ILSTC) is a trade and logistics passage that significantly improves connections between China and ASEAN countries. This corridor not only streamlines China's export processes but also presents Chinese enterprises with abundant investment opportunities for businesses in the ASEAN region.

ASEAN's youthful demographic with a shared culture

Since establishing a strategic partnership between China and ASEAN in 2013, the two have enjoyed a "golden decade" characterized by deepening economic ties, solidifying their positions as each other's top trading partners.

China and ASEAN deepened economic ties, solidifying their positions as each other's top trading partners. (Graphics/Chen Zhan)

"From the Belt and Road Initiative (BRI) to the ILSTC, national strategies prioritize engagement with ASEAN countries," said Wei.

With a shared tapestry of history and culture, ASEAN neighbors China, making it a key destination for China's foreign direct investment (FDI).

Additionally, ASEAN countries have a burgeoning labor force. The combined population of the ten ASEAN countries stands at 640 million, ranking it the third-largest region by population globally. Projections indicate that by 2030, the median age in this region will be a youthful 33.

Wei emphasized, "This large youth population means steady workforce growth, and the continued urbanization drives ASEAN's potential for sustained growth in the near and distant future."

Vietnam is taking on the surplus capacity from China

Investing in ASEAN countries presents many opportunities, especially considering the region's diverse economic landscapes and growth trajectories.

Digital tech and green industries emerge as critical drivers for overseas investments. (Graphics/Chen Zhan)

Wei underscored the tight-knit relationship between Chongqing and Singapore through the China-Singapore (Chongqing) Strategic Connectivity Demonstration Initiative (CCI).

While Singapore might have higher land, labor, and energy costs, its stable political climate, prime natural conditions, and robust financial system position it at the forefront of risk assessments.

In comparison, Vietnam is notably positioned in terms of benchmark and cost indices, mainly due to its young population and abundant labor resources. 

Furthermore, Vietnam is quickly emerging as a focal point for global transfer capacities, especially taking on the surplus capacity from China. Major shipping giants like Maersk, whose Chongqing organization in China officially commenced operations on January 9, are now channeling their investments into Vietnam. 

Digital tech and green industries critical to overseas investments 

Wei highlighted the intricacies of the global economic scene, citing geopolitical uncertainties as the main hurdles for China's foreign investments. "The economic and legal safeguards in some nations are still maturing, heightening the risk factor for overseas investments," he elaborated.

Investment situations of Singapore and Vietnam. (Graphics/Chen Zhan)

In foreign investments, Wei pointed out that the rise of digital technology, propelled by a new wave of industrial digital transformation, could be pivotal, encompassing networking, big data, and communications.

Simultaneously, green and sustainable development investments have steadily increased as the global community unites to address climate change. This suggests that sectors like green infrastructure, energy, transportation, and finance could emerge as key focal points for international investment partnerships.

Offering insights from his company's endeavors, Wei detailed how Cushman & Wakefield assists local companies in their investment ventures in ASEAN, spanning areas like cultural tourism, healthcare, and infrastructure.

For instance, they collaborated with Usunhome Group, a leading player in China's cultural sector from Chengdu, Sichuan, to broaden its presence in Southeast Asia, with a keen interest in Cambodia and Nepal.

Leveraging the BRI, they aim to establish a grand cultural tourism complex in Cambodia's Angkor Wat area and an international resort town in Kathmandu, Nepal. These projects are set to be milestones in the ASEAN cultural tourism landscape.