Vast foam material market opportunities under “Belt and Road Initiative”

As of June 2022, the total population of Southeast Asia reached 681 million, with a significant portion being under the age of 30. The youth-centric demographic structure implies a continuous and cost-effective labor force, becoming a cornerstone for attracting foreign investment in Southeast Asia.

The Southeast Asian market has become a crucial destination for Chinese exports.

With the advancement of the Belt and Road Initiative and the signing of the free trade agreement between China and ASEAN countries, the Southeast Asian market has become a vital destination for Chinese exports. China's exported goods to Southeast Asia primarily focus on categories such as electrical machinery, mechanical appliances, plastics, steel, mineral fuels, furniture, vehicles, organic chemicals, and knitted fabrics.

RCEP promotes commodity trade.

The comprehensive implementation of the Regional Comprehensive Economic Partnership (RCEP) has brought several policy dividends in terms of e-commerce development, tariff reduction, customs clearance procedures, and more, which marks a milestone against the backdrop of the current counter-flow of globalization and the reshaping of the global industrial chain. The first quarter of 2023 saw strong resilience in Southeast Asian venture capital despite the impact of global macroeconomic downturn, with 146 transactions totaling $1.53 billion in investment. RCEP is expected to inject a strong stimulant into regional trade liberalization, investment facilitation, and global economic development. Southeast Asia is also poised to become one of the most closely watched markets for global investment in the future.

Vietnam's Special Status and Advantages in Southeast Asia

Geographical Advantages

Vietnam stretches in a narrow strip from north to south., with an extensive coastline that facilitates well-developed import and export trade. This natural geographical advantage has provided convenient conditions for close cooperation with the Chinese market. For a long time, Vietnam has consistently been China's largest trading partner in ASEAN, while China is the biggest supplier of capital goods and intermediate products to Vietnam. Vietnam mainly imports machinery, equipment accessories, computer and electronic components, textiles, raw materials for footwear, telephones, electronic components, and transportation vehicles from China.

Demographic Advantages

As of early 2023, Vietnam's total population reached 98.53 million, with a labor participation rate of 68.9%. In terms of age, the median age of the population is 32.7, and those below 35 years old account for 52.2%.

Policy Advantages

According to Vietnamese regulations, new investment projects in specific industrial zones, export processing zones, high-tech park areas, and economic zones can enjoy exemptions and reductions in corporate income tax, and a tax incentive scheme known as "four years of exemption, nine years of half reductions". Additionally, Vietnam allows 100% foreign ownership in most industries, including trade, IT, manufacturing, and education.

In the first six months of 2023, Vietnam attracted foreign investment exceeding $13.43 billion, equivalent to 95.7% of the same period last year. Benefit from this, the Vietnamese economy has achieved high-speed growth. From 2020 to 2022, the Ho Chi Minh Stock Index experienced a growth rate exceeding 130%, ranking first among major indices in the Southeast Asian region.