Every year, about 60% of CHINAPLAS overseas visitors come from Asia. Image courtesy of Adsale
Strong growth in emerging Asian markets
Emerging economies in Asia are continuously introducing new policies to help companies transform and to attract foreign capital. Combining that with their domestic market potential, the manufacturing sector is growing in leaps and bounds. Every year, about 60% of CHINAPLAS overseas visitors come from Asia. And the number of visitors from Southeast Asia has been growing in recent years.
Vietnam is becoming a rising star in the region. According to the nation’s General Statistics Office, its GDP grew by 6.98% year-on-year in the first nine months of 2019, the highest rate in the past 9 years. Furthermore, the plastics industry there has averaged an annual growth rate of 15–20% in the last decade.
Among Vietnam’s advantages is its demographic dividend that features a large pool of low-cost labor, combined with competitive costs of land, energy, and taxes. In addition, its ports and stable currency have supported the growth of its export-oriented manufacturing sector. Many multinational conglomerates have established footprints in Vietnam, including Nike, Adidas, Olympus, Microsoft, Nokia, Canon, LG, Foxconn, Sony, Samsung and more. Chinese plastics machinery manufacturers, such as Haitian, BORCH, Yizumi, and JWELL, have also set up production bases, warehouses, subsidiaries, and after-sales service offices there.
Just like Vietnam, other Asian countries such as Thailand, Malaysia, Indonesia, and India are also delivering solid growth, each with strong focuses.
Dubbed as the Detroit of Asia, Thailand has become an automotive capital with 2019 production expected to reach 2.15 million vehicles. Thailand is also known as the World Kitchen, and its packaging industry is expected to grow at a CAGR of 4.2% between 2017 and 2020.
Malaysia is also benefiting from the rapid growth of the packaging industry, with more than 1,500 plastics processors in the nation. Malaysia projects its food and beverage industry to reach $268 million in revenue in 2019, sustaining an 18% compound annual growth rate; in the meanwhile, the pharmaceutical industry is also giving a boost to the packaging market.
In Indonesia, the food and beverage market grows 3.7% annually and supports the expansion of the plastics industry. Automotive investment has been active in Indonesia as well. Hyundai is investing in an electric car plant with an annual production capacity of 250,000 vehicles. An investment consortium from South Korea, Japan, and China is building a $4 billion EV battery plant.
In addition, Thailand, Malaysia, and Indonesia – the “Big Three” – have released their respective roadmaps for electric vehicles.
India, home to a population of 1.3 billion, boasts demographic dividend, a massive and fast-expanding domestic market, and rapidly growing construction, automotive and chemical industries.