Rest assured, the ASEAN economy is also on hold

Affected by the COVID-19 pandemic, some ASEAN countries have experienced economic downturns. The latest report released by the International Monetary Fund on October 13 predicts the economic situation of relevant ASEAN countries this year: Cambodia will fall by 2.8%, Indonesia will fall by 1.5%, the Philippines will fall by 8.3%, Myanmar will increase by 2%, Vietnam will increase by 1.6%, Thailand will fall by 7.1%, Laos will increase by 0.2%, and Brunei will increase by 0.1%.

However, the IMF also makes optimistic forecasts for the economies of ASEAN countries next year: Laos will grow by 4.8%, Thailand will grow by 4%, Brunei will grow by 3.2%, Malaysia will increase by 7.8%, the Philippines will increase by 7.4%, Cambodia will increase by 6.8%, Vietnam will increase by 6.7%, Indonesia will increase by 6.1%, Myanmar will increase by 5.7%, and Singapore will increase by 5%.

In view of the situation in the ASEAN market, can Chinese companies still find new business opportunities from it? Xu Ningning, executive director of the China-ASEAN Business Council, said in an interview with this reporter that in fact, some ASEAN countries especially need to cooperate to stop the decline when the economy is declining, which is also the main reason why ASEAN opposes trade protection and unilateral actions. The 36th ASEAN Leaders' Meeting held in June this year adopted the ASEAN Vision Statement, which clearly emphasized the strengthening of open and multilateral cooperation within ASEAN and with the outside world.

China's large market, the world's most complete industrial system, and the first to resume work and production in the global epidemic are beneficial to supporting the export of products from ASEAN countries, improving industrial support, supply of raw materials and accessories, and attracting investment from ASEAN countries in China. This has led ASEAN countries to regard China as a key target for enhancing economic and trade cooperation. In the first half of this year, China's investment in ASEAN countries increased by 53.1% year-on-year; ASEAN investment in China increased by 5.9% year-on-year, of which Singapore's investment in China increased by 7.8% year-on-year, which also reflects this.

Xu Ningning told reporters that not all economic industries in ASEAN countries have declined, and there is demand for digital economy products, anti-epidemic products such as medical devices, and agricultural products and food.

On August 8, the foreign ministers of ASEAN countries issued the "Statement on the Importance of Maintaining Peace and Stability in Southeast Asia" on the 53rd anniversary of the founding of ASEAN, paying attention to the impact of geopolitical changes in the region and the world on the region, emphasizing the importance of ASEAN's central position and regional architecture, and advocating multilateral cooperation to meet challenges.

Therefore, Xu Ningning suggested that enterprises should focus on improving their ability to connect with ASEAN business opportunities and make full use of the platforms of the China-ASEAN Expo and the China-ASEAN Business and Investment Summit held in November this year.

Author: Liu Xu

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Source: International Business Daily