Reported 8 months ago
Amid increasing tensions between China and the U.S., Southeast Asia has emerged as the preferred destination for companies looking to diversify their supply chains, following the relocation of production lines from China. This trend is popular not only among European and American companies but also among mainland Chinese firms. The region has benefited from the 'China +1' phenomenon, with both foreign and Chinese enterprises diversifying their supply chains and operations. Factors such as the COVID-19 pandemic lockdowns and geopolitical tensions have further accelerated this trend, leading to a significant increase in investment inflows into Southeast Asia. Investments in ASEAN countries have grown to $236 billion in 2023, surpassing the average annual investment of around $190 billion in the previous years. The majority of funds flowing into Southeast Asia come from the U.S., Japan, the EU, China, and Hong Kong.
Source: YAHOO