Over the past five years, Southeast Asia, particularly Vietnam, Indonesia, and Malaysia, has emerged as a premier investment destination for Chinese enterprises. Boasting numerous advantages, most notably attractive tariffs and political stability, the region is establishing a strong competitive edge.
A report released by the Ministry of Commerce, the National Bureau of Statistics, and the State Administration of Foreign Exchange of China revealed that in 2024, nearly 80% of China's Outward Direct Investment (ODI) flowed into Asia, an increase of 8.5% year-on-year, with $34.36 billion poured into ASEAN, a rise of 36.8%.
Southeast Asian nations, including Vietnam, are parties to a series of new-generation free trade agreements (EVFTA, CPTPP, RCEP). This provides superior tariff advantages for Chinese enterprises when their products carry "Made in Vietnam" or "Made in ASEAN" labels.
Many countries in the region have pledged strong support for FDI, particularly in technology manufacturing, electronics, and precision mechanics. Tax incentives and support with investment procedures are helping businesses shorten the time required to establish and deploy factories.
Furthermore, increasingly refined raw material supply capabilities and international logistics connectivity are enabling Chinese enterprises to expand profit margins, diversify risk, and move closer to global customers. These combined advantages explain why Chinese enterprises are intending to expand their manufacturing facilities in ASEAN.
At the "Southeast Asia Investment Seminar 2025," held in Hangzhou (China) on November 26 and co-organized by the Yuhang Economic Development Zone and the Southeast Asia Overseas Association, Ms. Nguyen Thi Bich Thuy, General Director of ROX iPark, shared her experiences in accompanying investors in the Vietnamese market over the past 30 years.
Ms. Thuy highlighted that ROX iPark supports investors throughout their entire journey, from market surveys and site selection consulting to infrastructure support (such as rooftop solar power) and operational services including HR and finance. This comprehensive support helps businesses quickly stabilize their operations in Vietnam.
According to ROX iPark, the wave of Chinese enterprises relocating to Southeast Asia is expected to continue for the next 5 to 10 years. Industrial developers possessing clean land banks, high-quality infrastructure, professional operational services, and the ability to facilitate rapid administrative procedures will become the most attractive destinations for these investors.
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