Southeast Asia Destination

SGGP 04/07/2023 06:26

According to data from the Indonesian Immigration Department, from February 14 to May 2023, approximately 5,000 investors from major cities in China flew to Indonesia. Three years after the Covid-19 pandemic broke out, Southeast Asia remains a vibrant destination.

In the summer of 2021, the topic of Vietnam as the "next world factory" was hotly debated. Besides Vietnam, Singapore also became a popular destination in Southeast Asia. This region has always been considered one of the world's most promising markets. The 2020 Southeast Asia Digital Economy Report, jointly published by Google, Temasek Holdings, and Bain & Company, showed that in 2020, the total value of goods in the Southeast Asian digital economy exceeded US$100 billion, and with the widespread adoption and upgrading of digital applications, this figure is expected to surpass US$300 billion by 2025. The internet growth rate in Southeast Asia is constantly increasing. Accordingly, the number of internet users in six Southeast Asian countries will increase from 20 million to 460 million by 2022, and the overall internet usage rate will reach 76%, much higher than the world average of 59.5%. Expanding business operations into Southeast Asia has become one of the growth strategies for many Chinese companies.

According to statistics from Singapore-based investment bank BridgeSEA Capital, the number of venture capital deals in Southeast Asia exceeded 650 in 2022, totaling nearly US$10 billion. Annual investment turnover was approximately US$18.39 million, showing an upward trend. Among investments in Southeast Asia, Singapore and Indonesia together accounted for about 70% of the venture capital market share.

The Southeast Asian market, encompassing Singapore, Indonesia, the Philippines, Malaysia, Vietnam, Laos, Cambodia, and Thailand, boasts a population of approximately 800 million and an average age of 27. Therefore, this region is consistently considered one of the world's most promising markets. Observers believe that for businesses seeking to conquer this lucrative market, the crucial question is: which is the first destination to consider when expanding their operations? Simply answering this question significantly increases a business's chances of success.

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