Southeast Asia -
lucrative produktion site
for global players

"Korea setzt als globaler Technologieführer auf schnelle Internetgeschwindigkeit, die von Samsung, LG, SK und KT unterstützt wird. Investitionen in IoT, 5G und intelligente Städte machen Korea zu einer der innovativsten Volkswirtschaften der Welt."

Southeast Asia (ASEAN)

Thanks to its low manufacturing costs and its growing markets, Southeast Asia has developed into an increasingly lucrative production location for globally active enterprises.

Furthermore, thanks to closer ties between governments in the region, business models of the format “China+1” are steadily gaining in importance and offer new business opportunities. Thanks to a wealth of experience gained on a wide range of projects, EAC is well acquainted with the characteristics of the markets in Southeast Asia and can support its clients in a wide range of activities in the countries in focus.

Due to weaker economic growth and markedly higher labor costs in China, attention is increasingly focusing on Vietnam as a lucrative business location for international companies. One important reason for this development is the high growth rate forecast for the country – the economy is projected to grow an average of 6.5 percent a year until 2024, making Vietnam one of the countries in the region with the best outlook. In addition to the very promising expectations for economic growth, Vietnam is also attractive because of the high level of education of its young population and significantly lower unit labor costs than the former ‘workbench’, China. Furthermore, Vietnam, with more than 90 Mio inhabitants, has a domestic market with excellent prospects and the political environment is considered to be stable over the long term. The geographically beneficial location as a link between China and Southeast Asia is a further attraction for investors.

In this context, the Vietnamese Government is pursuing investor-friendly policies with the objective of appealing to the broadest possible spectrum of foreign companies. After the first wave of predominantly textile companies flooding into the country several years ago, manufacturers of industrial goods have now also learnt to appreciate the country and its qualities. Furthermore, in the course of the industrialization process, foreign construction, energy and power companies can support the development of infrastructure and profit from the immense growth potential of the country. Currently, around 300 German companies from various industries are active in Vietnam. A free trade agreement between Vietnam and the EU was signed in June 2019. It will remove more than 99% of tariffs once in effect, further increasing the attractiveness of Vietnam for European companies.