In spite of trade wars, tariffs, and the never ending challenges to both multi-national and small to medium business owners (SME’s), business relationships and the level of commerce concentrated in Southeast Asia continues to grow.
The current challenge to companies whose survival is contingent on success in Asia is to find a way to work within the ASEAN group of countries while at the same time, managing the multitude of business and political restrictions.
Investors are understandably nervous, but there are profitable solutions to the problems of distributing and receiving goods in ASEAN countries for organizations who are manufacturing, designing, and marketing products from Europe or the Americas.
Increasingly, Western Europe and the Americas are viewing distribution hubs in SE Asia as part of their marketing strategy. With the trade surplus between China and the USA looming as a threat to regional businesses, many companies are coming up with creative solutions that are not only legal, but profitable for their companies as well as investors:
- As a distribution hub, Thailand is increasingly being seen as a key component of any international marketing strategy. Manufacturers recognizing the value of a Thai Certificate of origin are taking advantage of the liberal freezone Thailand offers that are located next to the Suvarnabumi International Airport on the outskirts of Bangkok’s Ladkrabang suburb. Despite the negative news regarding the Chinese and American trade war, Thailand has been able to escape the financial impact of tariffs and similar economic restrictions.
- With over 2 million tons of cargo flowing through its’ airport each year, Changi International Airport in Singapore is not only one of the largest air freight hubs in the world, but its position as a crossroads to SE Asia is indicated by its connection to 240 cities in 60 countries throughout the world. For many relocation companies, Singapore is positioned ideally for those expatriates moving to Melbourne or for other reasons need to be shipping belongings to Australia.
- The Saigon Port is the title given to a network of ports in Ho Chi Minh City. The port name is derived from the former name of the city and is one of the top 30 container ports in the world. Goods flowing into and out of this port account for over 65% of the economic activity in Viet Nam. For manufacturers considering expansion into SE Asia, the Saigon Port offers an appealing channel for commerce in the region.
At Eagles air & Sea, we are uniquely positioned to help customers throughout the region as well as the world manage their distribution, freight handling, and warehousing needs in Asia. For a free consultation regarding freezone opportunities as well as some guidelines for defining Import of Record requirements in Thailand, please contact us at +66 (02) 790 4599