>> HOME　>> Overseas M&A and Business Expansion Support　>> The Charm of the ASEAN Market

  • Overseas M&A and Business Expansion Support

  • Cross-Border M&A
  • Large Japanese companies doing business in emerging countries
  • Strengths of Our Cross-Border M&A
  • Strategic M&A Process
  • Cross-Border M&A Results
  • Service Menu at a Glance
  • Local Visitation and Surveys for Overseas Market Expansion
  • Types of Market Surveys
  • Survey Flow
  • Survey Track Record
  • Service Menu at a Glance
  • The Charm of the ASEAN Market
  • ASEAN as a Consumer Market
  • The charm of expanding into ASEAN for Japanese companies
  • Why M&A?
  • NEXT ASEAN: The 2nd Group of Emerging Countries
  • CIS Markets
  • Middle-East Markets
  • The African Market
  • Turkey: The Gateway to NEXT ASEAN
  • Istanbul: The Economic Center of Turkey
  • Business Expansion to NEXT ASEAN Via M&A

The Charm of the ASEAN Market

ASEAN: The Power of a Market Fueled by 600,000,000

In recent years, ASEAN, a market with over 600,000,000 people has been experiencing remarkable economic growth and has expanded in terms of GDP two-fold over the last ten years. After the financial crisis in 2008, ASEAN saw in 2009 a GDP growth rate of 7% despite the worldwide slump. According to the IMF, this region is projected to see an average growth rate of 7.5% in the coming five years as well. This figure doesn't surpass only the United States and Europe, but also the average for emerging countries as a whole (6%).

We have not only been seeing growth in Singapore, Malaysia, Indonesia, Thailand and the Philippines, the five great economies of SEA, but also in Vietnam, Myanmar, Cambodia, and Laos and in other countries as well. Moreover, these countries also coordinate with each other on their own accord to form economic spheres.
In line with economic growth the world has now come to really look forward to what these regions will do in terms of the services industry and consumer products going forward.

ASEAN as a Consumer Market

The Appeal of the ASEAN Market for Japanese Companies

Continuous Economic Growth

In the ASEAN region is projected to see comparatively stable economic growth. In recent years as well ASEAN has been continually seeing growth rates of around 5% and is predicted to grow at around the same rate as the BRIC countries. ASEAN is projected to grow to a scale that is comparable with the economies found in the US, Europe, China and Japan. By 2030 GDP in the ASEAN region is projected to grow by 2.5 times what it is now.
With expansion of infrastructure in the ASEAN region there are plans under the direction of the various governments to further develop transportation, communications and energy infrastructure as well as special economic zones. This is a huge change for Japanese companies and is one of the charms of the region in that respect.

Immensely Consumer Market

The charm of the ASEAN market has been on the increase in terms of its value as both a manufacturing base and consumer market. ASEAN without a doubt now has a growing presence felt worldwide. On top of a population of six hundred million and an extremely young labor pool, the size of the middle class in the region is also predicted to grow. A segment of the population with a certain level of purchasing power is going to grow steadily and by the year 2020 the number of people in the middle and upper class are predicted to be over 400,000,000.

Japanese Brands that are Alive and Kicking

In the ASEAN region, the share of Japanese companies in the manufacturing sector (with the automotive sector being a representative example) has resulted in a very good image of Japan amongst the populace. In addition to ODA contributions from Japan, they also look up to the Japanese culture. As evident in such policies as Malaysia's "Look East" policy, countries in the region really want to learn about the things Japan does best. The image companies in the region have of Japanese companies is that they are trustworthy, have great brands as well as great technology among other things; Japanese companies are seen in a very favorable light.

Geographic Proximity to Japan

In comparison with Europe and the US, there are geographical advantages to working in ASEAN. There is not much of a time different with Japan and it is very easy to get to and from ASEAN if one is based in Japan. This is crucial for Japanese companies.

An Environment Where Business in English is Possible

The ASEAN region has demonstrated a higher level of English in the business community when compared with other non-English speaking countries. Japanese companies would have no problem conducting business in English in the region. In other words, English as the language of communication means that there are no linguistic barriers that need to be overcome, making for an environment that makes it more likely for Japanese companies to success when compared to the emerging nations. However, the level of English in the region does obviously differ depending on the country.

The charm of expanding into ASEAN for Japanese companies