Manufacturing exports to Southeast Asia, with these four industries experiencing the fastest growth

Southeast Asia, with its large scale, young age, and relatively vertical market, has become the preferred market for many institutions and enterprises to venture abroad. Among them, manufacturing enterprises are quite worthy of our attention.

From 2021 to 2023, the cumulative investment of China's manufacturing industry in Southeast Asia exceeded 40 billion US dollars, far exceeding Europe, Latin America and other regions. Southeast Asian countries such as Indonesia, Malaysia, and Cambodia are all attracting a large amount of investment from China.

I will start with "Chinese manufacturing enterprises going abroad to Southeast Asia" and analyze the current situation and key areas of going abroad, the "moat" of China's manufacturing industry going abroad, and the future growth code.

① The proportion of Chinese manufacturing in global manufacturing has exceeded 30%, but the Chinese market can only absorb less than 20%. Seeking greater development space and new increments in overseas markets has become a trend.

② The industry pattern of China's manufacturing industry going global has basically formed, with the four pillar engines of leaders, leaders, promoters, and endurance leading "China's intelligent manufacturing" towards a broader international market.

③ In 2023, China's exports of the "new three types" in Southeast Asia increased by 89.3% year-on-year, leading the world.

As a major manufacturing country, China has consistently ranked first in the world in terms of overall scale for 14 consecutive years. According to data from the Ministry of Industry and Information Technology, the added value of China's manufacturing industry in 2023 was 33 trillion yuan, with a total output value accounting for 35.0% of the global market, making it the center of the global manufacturing industry.

With the continuous expansion and upgrading of China's domestic manufacturing industry to the high-end, it is inevitable that the industry will experience spillovers and transfers. At present, China's largest export market is no longer the United States and the European Union, but rather Southeast Asian countries on its doorstep.

To determine the importance of the overseas market, overseas investment is an important indicator. In this report, we will start with two data points: investment stock and new investment amount.