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US Investment Opportunities increasing in Malaysia, Singapore, and Vietnam Special Economic Zones

US Investment Opportunities increasing in Malaysia, Singapore, and Vietnam Special Economic Zones

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In an effort to attract more US investors, the Association of Southeast Asian Nations, or ASEAN as it is more commonly referred to, is now promoting Special Economic Zones in order to become a more powerful trading bloc of member states.  These zones are comprised of industrial parks, innovation areas, special export processing areas, and technology parks.  Since the ASEAN Economic Community or AEC was established in 2015, they have become increasingly more important to the overall economic picture.

Revenue Statistics

As of 2018, the total revenue from two-way trading between the US and ASEAN has reached $260 billion (USD).  Furthermore, the US is now the 4th largest trading partner in the ASEAN.  There are 3 key points that have come out of this:

  • First, US investors have been presented with new investment opportunities in the ASEAN region, especially in countries such as Malaysia, Singapore, and Vietnam. 
  • Second, the bloc’s SEZ’s are facilitating more trade between the US and ASEAN through a range of fiscal and non-fiscal incentives. 
  • Third, Total trade between the two has exceeded the $260 billion (USD) mark reached in 2018. This includes ASEAN exports of commodities, electronics, machinery, and textiles.


While the top ASEAN export categories included electronics, footwear, garments and textiles, and machinery, the largest single exporters included:

  • Vietnam – $49.2 billion (USD)
  • Malaysia – $39.4 billion (USD)
  • Singapore – $27 billion (USD)


ASEAN members agree that US investors who want to take advantage of the SEZ’s should try to be more understanding of those factors that can affect their business. 

In Thailand, the government commenced the establishment of 10 SEZs in border areas with Cambodia, Laos, Myanmar and Malaysia with the aim to increase border trade between the countries that was valued at US$32 billion in 2018. While the export to US totaled US$30 billion in 2019, which accounted for exports of rubber tires, semi-conductors, precious stones and computer chips.

Another ASEAN member country, Philippines has 12 SEZs and over 300 economic zones while it exported computer hardware and electronic things amounting to US$12 billion to USA. With bustling trade between US and ASEAN countries, most countries including Indonesia, Myanmar and Cambodia have started investing in manufacturing for export to the western countries, over the years.

Opportunities increasing in Malaysia, Singapore, and Vietnam

While there are numerous countries in the ASEAN bloc, US investors are paying special attention to the countries of Malaysia, Singapore, and Vietnam.  Here’s why:

Malaysia – the 5 investment corridors in Malaysia ship $600 million in cell phones, $4 billion in computer chips, and $890 million in semi-conductors annually.  As of 2018, these 5 corridors were responsible for the creation of nearly 2 million jobs and increasing investments in new company formation in Malaysia worth $188 billion.  In addition to this, the ECER (East Coast Economic Region) is anticipating the addition of 120,000 new jobs and investments reaching $16 billion by 2025.

Singapore – the nation is too small to establish SEZ’s of its own despite having the largest port in shipping volume in the world.  Consequently, it has partnered with the Malaysian Government to form the Batam Export Processing Zone and the Iskander SEZ.  Both have been successful where new company formation in Singapore is concerned.  As a result, the total trade between the US and Singapore reached $57 billion last year.

Vietnam – in 2019, Vietnam ranked 11th in total trade dollars ($25 billion+) with the US with the top exports being $3 billion in cell phones, $1 billion in furniture, and $1.1 billion in garments and textiles.  New company formation in Vietnam has included the addition of more export processing facilities and the possible creation of SEZ’s along Vietnam’s lengthy eastern coast. In so doing, they will compete for additional foreign investments with South China.

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