ASEAN x China business relations (1).pdf

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ASEAN x China
business relations
March 2023

© 2022 DAXUE CONSULTING
ALL RIGHTS RESERVED
2
Overview of China-ASEAN trade relations
1. 03
The shift of supply chain from China to ASEAN
2. 21
Implications of key trade agreements
3. 26
Deep dive into the six chosen ASEAN countries
4. 38
106
5. Potential business developments
CONTENT OUTLINE
125
7. About Daxue Consulting
118
6. General perception of China

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Overview of China-ASEAN
trade relations

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Timeline of China-ASEAN relations (1/3)
China established diplomatic relations with ASEAN countries in the 1990s.
Chinese Foreign Minister Qian
Qichen attended the 24th ASEAN
Foreign Ministers' Meeting in
Kuala Lumpur, marking the start
of the China-ASEAN dialogue.
China became a full dialogue
partner of ASEAN.
The first informal China-ASEAN
Summit convened and the first
ASEAN Plus Three Summit (China,
Japan and South Korea) were held
in Malaysia.
China and ASEAN signed:
1) A framework agreement on
comprehensive economic cooperation,
in which they agree to launch the
China-ASEAN Free Trade Area
2) The Declaration on the Conduct of
Parties in the South China Sea.
China and ASEAN established the
Strategic Partnership for Peace and
Prosperity during the seventh
China-ASEAN Summit. The Chinese
government also announces its
joining the Treaty of Amity and
Cooperation in Southeast Asia.
The first China-ASEAN Expo was
held in Nanning, Guangxi Zhuang
autonomous region. China and
ASEAN also signed a free trade
agreement on trade in goods.
1991
1996
1997
2002
2003
2004
Source: Ministry of Foreign Affairs of the People's Republic of China
The relationship
between ASEAN and
China improved.
Commemoration of the 30th Anniversary
of ASEAN-China Dialogue in 2021

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In 2009, China overtook US and Europe to become ASEAN’s largest trading partner.
2007
2008
2009
2010
2012
China and ASEAN signed an
agreement on trade in
services.
Ambassador Xue Hanqin
was appointed China's first
ambassador to ASEAN.
China and ASEAN signed a
free trade agreement on
investment.
The China-ASEAN FTA was
established on schedule.
With a combined population
of 1.9 billion people, the area
is the largest among
developing countries.
China launched a permanent
mission in ASEAN.
Top judicial bodies from China
and ASEAN expanded exchange
and training programs to help
judges in the region more
effectively handle trade issues.
Discussions on Belt and Road
Initiative (BRI) started.
2014
Source: Ministry of Foreign Affairs of the People's Republic of China
Permanent mission
= diplomatic mission to a major
international organization
2015
China and ASEAN signed the
outcome document of the
China-ASEAN Free Trade
Agreement.
*

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The 22nd ASEAN-China Summit was held. The
Plan of Action to Implement the Joint Declaration
on ASEAN-China Strategic Partnership for Peace
and Prosperity (2021-2025) was formulated.
Joint statements on Synergizing BRI and the
Master Plan on ASEAN Connectivity were issued.
The Belt Road Initiative (BRI) and Regional Comprehensive Economic Partnership (RCEP) catalysed further cooperation between
China and ASEAN countries.
2016
2017
2018
2019
2020
First Lancang-Mekong Cooperation
Leaders’ Meeting was held in Sanya,
Hainan, marking the start of the
Lancang-Mekong cooperation.
Designated as the ASEAN-
China Year of Tourism
Cooperation.
15th Anniversary of ASEAN-China
strategic partnership and launched
ASEAN-China Year of Innovation.
China-ASEAN Strategic Partnership
Vision 2030 was issued.
2021
Source: Ministry of Foreign Affairs of the People's Republic of China, ASEAN China Center, SMCP
Regional Comprehensive Economic
Partnership (RCEP) Agreement was signed
at the ASEAN Summit, formalizing the
largest free trade agreement (FTA) in history.
Designated as the ASEAN-China Year of
Digital Economic Cooperation.
Commemorated the 30th
Anniversary of ASEAN-China
Dialogue Relations.
Lancang-Mekong Cooperation
Leaders’ Meeting

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3.2%
3.5%
4.3%
16.4%
34.4%
Iron and steel
Mineral fuels and oils
Plastics
Machinery and mechanical appliance
Electrical machinery
Key exports from China to ASEAN (2020)
China is one of the key trade partners of ASEAN
China has been ASEAN’s largest trading partner for 13 consecutive years since 2009.
China’s top 5 trade partners 2021 (share %)
Japan
6.3%
Source: General Administration of Customs
ASEAN
14.8%
United States
12.8%
South Korea
6.1%
European Union
14.0%
5.3%
5.5%
7.4%
8.6%
30.5%
Plastics
Iron and steel
Machinery and mechanical
appliance
Mineral fuels and oils
Electrical machinery
Key exports from ASEAN to China (2020)
Source: ASEAN Secretariat

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As a group, ASEAN is among the top 5 economies by GDP
Most of the economic activities in ASEAN took place in the ASEAN-6 countries – Indonesia, Malaysia, the Philippines, Singapore,
Thailand, and Vietnam.
As a group, ASEAN countries have the 5th largest economy
(in trillions)
$21.43
United States
$14.34 $5.08 $3.86 $3.18
China Japan Germany ASEAN
Source: World Bank
5.1% 4.4%
-3.8%
5.5%
2018 2019 2020 2021
ASEAN GDP growth
72.4
32.4
11.4
7.6 4.3 3.6 3.7 2.7 1.6 1.3
GDP per capita (2021)
(in thousand US$)
14
20
27
73
362
373
395
394
506
1,186
Brunei
Laos
Cambodia
Myanmar
Vietnam
Malaysia
Singapore
Philippines
Thailand
Indonesia
Nominal GDP (2021)
(in billion US$)

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Global investors are attracted to ASEAN’s economic opportunities
Chinese investors invested in ASEAN’s manufacturing, real estate, wholesale and retail sectors.
China is among the top 5 of ASEAN foreign direct investment (FDI) by source in 2020*
(share of total FDI inflow)
25.5%
United States
6.2%
Japan
European Union
7.2% 5.6%
China
Source: ASEAN Secretariat, Office of the United States Trade Representative
16.6%
ASEAN
*preliminary figures
Nonbank holding
companies,
manufacturing, and
wholesale sectors led
U.S. FDI to ASEAN.

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17%
18%
25%
Real estate activity
Information and communication
technology
Manufacturing
Top 3 foreign direct investments to ASEAN
inflow from China by industry in 2021
Manufacturing is the major contributor of FDI inflow from China to ASEAN in 2021
Singapore is the leading FDI destination in ASEAN as it is the regional hub for high-tech industries.
BILLION
14.35
US$ Direct investment* in all industries from
China to ASEAN in 2021.
Top destination countries for investment:
Singapore, Indonesia and Malaysia
BILLION
10.58
US$ ASEAN countries’ actual investment in
China in 2021.
Top countries of origin for investment:
Singapore, Thailand and Malaysia
Source: China Embassy (2022)
*preliminary figures
Singapore provides a mature ecosystem for high-tech
industries such as aerospace, pharmaceuticals and
advanced manufacturing.
Meanwhile, Chinese companies were investing in
Indonesia’s smelters to produce nickel, which plays a vital
role in the electric vehicle battery industry in China.
Source: ASEAN Secretariat, The Star

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ASEAN remains an attractive investment destination despite COVID-19
Although there was a decreasing investment from 2017 to 2020, Chinese investment in ASEAN increased in 2021; the top
industries that attracted investment changed throughout the years.
10.5
17.5
12.8
8.8
7.7
14.4
2016 2017 2018 2019 2020 2021*
Source: ASEAN Secretariat, Ministry of Commerce of China (2022)
*preliminary figures by the Ministry of Commerce, China
Boosted by the
infrastructure projects
under BRI and Alibaba’s
investment in Lazada
Declined due to slowdown in the real estate industry
investment, concerns about “debt-trap diplomacy”,
and COVID-19 disruption.
FDI boosted by
investment in digital
infrastructure and
technology-related
activities along with
the RCEP agreement
Foreign Direct Investment to ASEAN from China
(in billion US$)

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7,200 7,010
6,720
3,600
1,500 1,300 1,100
300 110 46
Chinese diaspora in ASEAN countries
(in thousands, 2020)
1%
1%
2%
2%
2%
3%
10%
10%
25%
63%
Vietnam
Philippines
Laos
Cambodia
Myanmar
Indonesia
Brunei
Thailand
Malaysia
Singapore
Percentage of citizens with Chinese ethnicity in
ASEAN countries (2020)
Singapore and Malaysia have the highest proportion of Chinese diaspora
In 1940s, over 90% of the Chinese who emigrated went to Southeast Asia. They made significant contributions to their new
communities such as reclaiming wasteland and participating in commercial activities.
Source: World Atlas, ASEAN Secretariat, UNESCO
The Chinese diaspora in
Singapore and Malaysia
bridged the cultural and
language gap between
Chinese and ASEAN
businesses.

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Chinese diaspora in ASEAN is more influential in real estate and finance sectors
Despite being considered minorities in most of the ASEAN countries, the Chinese diaspora influence a majority of economic
activity in industries like real estate, finance, trading, and retail.
Federated business associations, such as:
Singapore Chinese Chamber of Commerce and Industry (SCCCI)
Federation of Filipino Chinese Chambers of Commerce & Industry
(FFCCCII)
Associated Chinese Chambers of Commerce and Industry of Malaysia
(ACCCIM)
Regional associations, such as:
Cebu Fil-Chinese Chamber of Commerce in the Philippines
Kuala Lumpur Chinese Chamber of Commerce and Industry in Malaysia
Classified by different sectors of industry, such as:
Lumber Merchants Association in the Philippines
Selangor Chinese Engineering Association in Malaysia
Transnational engagement
Domestic affairs
Types of Chinese business associations in ASEAN
Source: Ren & Liu, 2021
Source: The Economist, Russian Council, ISEAS
• Controls 90% of the economic activities in Singapore
• Focused on banking, real estate, and trading
• Controls 60% of the economic activities in Malaysia
• Focused on agriculture, real estate, and construction
• Controls 67% of the largest private companies in the Philippines
• Focused on finance, real estate, construction, and trading
• Controls 90% of the trading and industrial sectors in Thailand
• Focused on finance, trading, construction, and retail
• Controls 73% of the funds in public listed companies in Indonesia
• Focused on agriculture, real estate, retail
Main economic activities of Chinese diaspora in ASEAN

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73%
75%
76%
87%
94%
Wealth of ethnic Chinese billionaires as percentage of
total wealth owned by the country's billionaires
(2020)
Singapore
Malaysia
Indonesia
Philippines
Thailand
Source: Forbes, The Economist (2020)
Ethnic Chinese communities play an important role in ASEAN’s business activities
Ethnically Chinese tycoon families dominated the billionaire lists in Southeast Asia.
91% 88%
85%
65%
57%
Percentage of billionaires in ASEAN who are of
Chinese descent
(2020)
Singapore Philippines Malaysia Thailand Indonesia

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Famous businessmen of Chinese descent in Indonesia
Hartono Family
• The Hartono family is the richest family in Indonesia. The Hartono
brothers inherited their wealth from Oei Wie Gwan, their Chinese father.
Their later father established Djarum Group, the world’s third-largest
clove-flavored cigarette manufacturer.
• The Hartono brothers obtained most of their wealth from their Bank
Central Asia’s holdings, one of Indonesia’s largest banks. They also
own real estate in the prime areas of Jakarta and the electronic brand,
Polytron.
• The brothers also invested in an American-Singaporean gaming
company, Razer. In 2022, they listed Global Digital Niaga, which is the
parent of Indonesia’s e-commerce giant Blibli. The listing raised
US$510 million and became Indonesia’s second-largest IPO in the year
2022.
Facts about Hartono Family
Source: Forbes, CNBC
Hartono brothers – R. Budi and Michael
Associated companies

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Famous businessman of Chinese descent in Malaysia
Robert Kuok
(AKA: Guo Henian 郭鹤年)
• His net worth is estimated at US$11.1 billion in 2023. He is known as
“the sugar King of Asia” as he controlled 10% of the world’s sugar
market in the past. He diversified into other industries and gained
nicknames such as “King of hotels” and “King of grain and oil” in Asia.
• He holds the Kuok Group of Companies with businesses ranging from
sugarcane plantations (Perlis Plantations Bhd), sugar refineries, flour
milling, animal feed, oil, mining, finance, hotel (Shangri-La Hotels and
Resorts), property (Kerry Properties), trading, freight (Kerry Logistics)
to publishing. In 2021, at the age of 99, he sold Kerry Logistics to SF
Express for US$2.24 billion.
• Golden Dragon Fish (“金龙鱼”) the most prominent grain and oil
company in the Chinese market, is one of the core assets of Robert
Kuok in China.
• He is the wealthiest man in Malaysia and a philanthropist. He is the
honorary trustee of Peking University and donated to schools like
Xiamen University and HKUST.
Facts about Robert Kuok
Source: Netease, Forbes, Malaysia-China Business Council

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Famous politician of Chinese descent in the Philippines
Corazon Aquino
(AKA: Mrs. Aquino)
• The 11th president of the Philippines
• The world's first Chinese female president
Source: Time, Sohu
• Mrs Aquino, the first female president of the Philippines, is known for
her friendship with China.
• She was installed as the 11th president after the 1986 People Power
Revolution. The revolution overthrew President Ferdinand Marcos' two-
decade reign and brought about the foundation of the current
democratic Fifth Philippine Republic.
• Mrs Aquino pushed for the withdrawal of American troops. Then, she
converted the former military bases into free economic zones in the
Philippines.
• She not only took the initiative to ease the frozen relations between
China and the Philippines due to the South China Sea disputes but also
offered sacrifices to her ancestors in Zhangzhou, Fujian Province, and
claimed to be the "daughter of China".
Facts about Corazon Aquino

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• Chia Kok Min is the Chairman of Charoen Pokphand Group (CP Group)
and the wealthiest man in Thailand. CP Group is the country’s largest
private company with a revenue of US$82 billion in the year 2020.
• CP group was the first foreign company to invest in China and has
invested nearly US$6 billion in the country. In 2012, CP Group is the
largest foreign lessee of land in China, amounting to 200,000 hectares
of land. Besides, CP Group owns over a fifth of China's entire feed
meal market.
• CP Group invested US$10.7 billion in acquiring Ping An stake in China
back in 2013. Thus, the conglomerate became the largest shareholder
of Ping An Insurance Group, China’s largest insurer by capitalization.
Famous businessman of Chinese descent in Thailand
Chia Kok Min
(AKA: Dhanin Chearavanont, Xie Guomin)
Source: Financial Times, Sohu, The Star
Facts about Chia Kok Min

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Famous businessman of Chinese descent in Singapore
Goh Cheng Liang
(AKA: Wu Qingliang)
Source: Forbes, Bloomberg, Sohu,
• Goh is the third richest person in Singapore. He founded NIPSEA Group
which manufactures paint and coatings and Wuthelam Group. The
latter further diversified into logistics, property management, and real
estate.
• Goh established his first paint shop in Singapore in 1955 and formed a
joint venture called Instant Group with Nippon Paint to expand the
Southeast Asian market in 1962.
• Goh’s Wuthelam Holdings was established in 1974 as a paint
manufacturer and property developer.
• In 2020, Wuthelam Holdings officially acquired ownership of Nippon
Painty. He became the largest shareholder of Nippon Paint. His overall
net worth increased by about US$3.8 billion as a result of the
transaction.
Facts about Goh Cheng Liang

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Famous businessman of Chinese descent in Vietnam
Pham Nhat Vuong
(AKA: Phạm Nhật Vượng, 潘日旺)
Source: Forbes, Sohu, Financial Times
• Pham Nhat Vuong and the Vin Group have profoundly influenced
Vietnamese society. Vietnamese consumers often use goods and
services provided by Vin Group, including the huge shopping centres
VIC, the Vmart supermarkets, the villas built by Vinhomes, the Vinfast
automobiles, and the Vsmart smartphones.
• He remains Vietnam’s richest man for the ninth year in a row, with a
fortune of US$6.2 billion, according to the 2022 Forbes Billionaire list.
• Vingroup is the largest real estate company in Vietnam. Its revenue in
2021 is equal to about 1.5% of Vietnam's GDP.
• He ventured into the electric vehicle space through VinFast. The
company shipped the first batch of electric SUVs to the United States
in 2022.
Facts about Pham Nhat Vuong

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The shift of supply
chain from China to
ASEAN

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3.9%
4.2%
4.2%
6.0%
6.3%
10.4%
18.5%
Latin America
East Asia
Europe
United States
Indian subcontinent
Elsewhere
Southeast Asia
U.S. firms in China relocation plans during trade war
(2018, N=430)
Southeast Asia is the top relocation destination during US-China trade war
Source: AmCham China, 2018
Notes: Indian subcontinent includes India, Bangladesh, Pakistan, and Sri Lanka. According to the survey,
46.5% of the respondent had no relocation plans. Elsewhere includes Africa, Russia, and Asia Pacific.
Products with highest import substitution
Source: Nomura
Away from China Away from the U.S.
• Electronics
• Electrical machinery
• Furniture
• Soybeans
• Aircraft
• Grains
Competitive wage rates*
*Indonesia, Malaysia, the Philippines, Thailand
Relatively free access to Western and Asian markets due to
trade pacts
ASEAN countries’ government incentives and support in
building manufacturing ecosystem
Source: IMD
ASEAN countries stood out due to its cost competitiveness, high productivity of manufacturing plants, and relatively free access to
Western and Asian markets.
Source: Nomura
Why relocate to ASEAN?

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Vietnam is the biggest winner from the US-China Trade War
0.1%
0.5%
0.7%
1.3%
7.9%
GDP gains due to the US-China Trade War
Source: US Census Bureau, China General Administration of Customs and Nomura
Source: Nomura, Bloomberg, The Diplomat, EIU, The ASEAN Post
The electronics component manufacturing sector in Vietnam and Malaysia saw a surge in investment. In 2020, shipments of
semiconductors from ASEAN to China increased by 24% whilst those from China to ASEAN surged by 29%.
ASEAN manufacturing sector during the US-China Trade War
The Philippines saw a disruption in its exports due to the tariffs imposed on China.
About 17% of the Philippines’ total exports were shipped to China, most of which are
electronic components.
Vietnam exports to the U.S. surged 36% in the first five months of 2019 compared to
the same period last year. China's total trade with Vietnam increased 14% in the first
half of 2019, the largest increase of any major trade partner.
Singapore’s electronic exports decreased by 26%, year on year, in the second quarter
of 2019, as 25% of Singapore’s total exports were bound for China thus were
impacted by the trade war.
Thailand launched stimulus packages such as tax incentives, “Thailand 4.0” and the
Eastern Economic Corridor special economic zone to attract electronics
manufacturers during the US-China Trade War period.
Major electronics component manufacturing companies such as Dell, Sony, and
Panasonic, increased their investment in their Malaysia plants.
Vietnam
Malaysia
Singapore
Thailand
Philippines

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“China Plus One” strategy causes supply chains to move to ASEAN
“China Plus One” is a business strategy where international businesses remain active in China whilst diversifying their supply
chains and consumer markets in other countries.
Source: Standard Chartered, BNP Paribas, Economist Intelligence Unit, The Diplomat, UOB
Wages in Southeast Asia’s manufacturing sector
are lower than China’s.
Average cost of factory labor (per hour):
China: US$ 6.50
Thailand: US$ 3.70
Vietnam: US$ 2.99
Indonesia: US$ 2.78
ASEAN is part of major regional trade
agreements such as the Regional Comprehensive
Economic Partnership (RCEP) and the vast
network of Free Trade Agreements (FTAs) with
the European Union, the United States, Japan,
and India.
The rising middle-class and young population in
ASEAN boosts demand for goods and services.
By the year 2040, the median age in Southeast
Asia will be below 40, while the median age in
China will rise to 47.
Governments of ASEAN countries are providing
incentives and favorable tax treatment to
promote certain strategic industries.
Vietnam focused on high-tech manufacturing
whilst Thailand promotes aerospace and medical
devices sectors.
Why ASEAN is one of the top destinations under the “China Plus One” strategy?
China
US$ 6.50
Thailand
US$ 3.70
Vietnam
US$ 2.99
Indonesia
US$ 2.78

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Foreign investors are attracted to Southeast Asia’s economic growth prospects
ASEAN countries’ inclusion in regional trade pacts boosted supply chain integration and confidence of international manufacturers.
The Economist Intelligence Unit forecasts that Singapore, Malaysia, and Thailand will benefit most from the supply-chain shifts.
Political
effectiveness
Macroeconomic
environment
Market
opportunities
FDI policy
Foreign trade &
exchange
controls
Labor market Infrastructure
Technological
readiness
Overall score
Singapore 9.0 7.8 6.0 10.0 10.0 7.6 9.0 9.2 8.5
Malaysia 6.1 7.5 7.2 7.8 8.7 6.9 7.0 7.8 7.4
Thailand 5.5 7.2 6.7 6.9 8.2 6.5 6.0 7.2 6.8
Indonesia 4.5 6.6 7.2 6.0 7.8 6.4 5.3 5.8 6.3
Vietnam 4.9 7.2 6.6 6.0 8.2 6.3 4.5 5.5 6.2
Philippines 4.2 6.6 6.0 6.9 7.3 6.5 4.5 5.8 6.1
The Economist Intelligence Unit’s (EIU) business environment rankings*
Source: Economist Intelligence Unit, Standard Chartered, ASEAN Secretariat,
Dezan Shira & Associates, ASEAN Investment Report 2020-2021
*Note: Score categories are non-exhaustive, and cover the forecast period of 2022-26; up to date as at Q2 2022
• Singapore upgraded its existing FTA with China in October 2019 to offer higher levels of investment protection. In 2020, the EU-
Singapore Investment Protection Agreement and the EU-Singapore Partnership and Cooperation Agreement were signed which
increased Singapore’s attractiveness among foreign investors.
• Malaysia provides tax incentives and grants for high-end technology, manufacturing or value-added services. A specific channel was
catered for Chinese investors and fast-track investments for US and Chinese businesses.
• International tech companies such as Apple and Samsung shifted part of their supply to Vietnam for its lower labor and input costs
despite the lack of infrastructure.

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Implications of key
trade agreements

3.1 Regional Comprehensive Economic
Partnership (RCEP)

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RCEP is the world’s largest free trade agreement
The Regional Comprehensive Economic Partnership (RCEP) involves 10 members of ASEAN and 5 non-ASEAN members. Despite
India’s withdrawal in 2019, they make up over 30% of the global GDP and population and over 25% of global trade in goods and
services.
South Korea China
New Zealand Australia
Japan
Singapore
Brunei
Camboia
Indonesia
Malaysia
Laos
Myanmar
Philippines
Thailand
Vietnam
East Asian countries
Oceanian countries
~30%
ASEAN RCEP accounts for
of the world’s population,
or 2.3 billion people
~30%
25%+
of global GDP,
or US$ 25.8 trillion
of global trade in goods and
services, or US$ 12.7 trillion
Source: United Nations, ASEAN

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China’s biggest export to ASEAN are electrical machinery, iron, and steel
In Asia, ASEAN is the largest destination for Chinese international infrastructure projects.
Source: China Customs
11.4%
13.0%
14.4%
19.2%
28.1%
Indonesia
Singapore
Thailand
Malaysia
Vietnam
China’s Top 5 ASEAN Trading
Partners in 2020
Electrical machinery, textiles, and
iron and steel
Electrical machinery, plastics, iron
and steel
Top Export Products from
China to the ASEAN country
in 2020
Electrical machinery, iron and
steel, and chemical products
Electrical machinery, mineral fuels
and oil, and transportation parts
Electrical machinery, iron and
steel, and chemical products
Source: The Observatory of Economic Complexity
ASEAN is the largest destination for Chinese international
infrastructure contracts within Asia. Most contracts were in:
and many were associated with the Belt and Road
Initiative (BRI).
Transportation Power Telecommunication
For instance:
• Phnom Penh-Bavet Expressway worth US$1.6 billion
which was announced in 2022
• Jakarta-Bandung High-Speed Railway that was presented
during the G20 Bali Summit
• PowerChina develops Indonesia’s Citara floating
photovoltaic power plant and Batang Toru hydropower
plant

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40
67
97 112
180
3
7
15
18
31
2019 2020 2021 2022 2023 2024 2025
SEA e-commerce gross merchandise value
(US$ Billion)
Non-grocery Grocery
Impact of RCEP on e-commerce in ASEAN countries
RCEP aimed to create a uniform approach to trade rules and boost the presence of e-commerce in ASEAN.
• RCEP simplifies trade by creating a unifying trade rules, eliminating
the “noodle bowl effect*” of having multiple or even overlapping
trade agreements.
• Through this free trade agreement, e-commerce sector can enjoy:
1. Tariff elimination or reduction
Resulting in higher profit margin for sellers.
2. Quicker custom clearance
Faster delivery time for both importers and exporters.
3. Greater use of digital tools
Promoting a seamless e-commerce experience
brought by paperless trading and electronic
authentication.
Source: United Parcel Service (2022)
* a multiplication of free trade agreements between individual countries
and has negative effects on trade.
• E-commerce in ASEAN has grown rapidly, supported by the
increased access to internet and adoption of smartphone.
• In 2019, economic ministers of ASEAN countries signed the
ASEAN Agreement on Electronic Commerce which facilitates
the growth of e-commerce transactions.
• Combined with the key BRI projects in ASEAN such as ports,
railways and airports, e-commerce will develop further as
supported by higher cross-border connectivity and efficiency.
Source: Google, Temasek, and Bain
…

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ASEAN’s manufacturing sector is set to benefit from RCEP
ASEAN countries have strong manufacturing capabilities, especially in electronics, automobiles, machinery, and petrochemicals.
ASEAN has a strong manufacturing foundation with a wide
range of well-established manufacturing clusters, such as:
• Electronics in Malaysia and Vietnam
• Automobiles and packaged food in Thailand
• Machinery and petrochemicals in Indonesia
• Semiconductors, biopharmaceuticals and
aerospace components in Singapore.
80 76 89 100 102
47 44 54 64 63
56 58 62 64 64
69 70 77 88 83
87 91
100
111 119
123 126
141
142 141
145 122
152
173 153
141 142
157
162 168
424 425
491
530 531
ASEAN Export Value by Manufacturing Sector
(in billion US$)
Auto, electronics, and
machinery
Nonmetallic materials
Minerals
Agrifood
Textile and apparel
Chemicals
Transport
Metals
Other Manufacturing
Source: BCG (2021) Source: BCG (2021)
90%
In 2020, manufacturing goods accounted for
74%
Chinese exports
to other RCEP
economies
Chinese imports
from other RCEP
economies
Source: The State Council The People’s Republic of China
2015 2016 2017 2018 2019
1,172 1,154 1,325 1,436 1,424
SUM

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Dynamics of Agricultural Trade Between ASEAN and China
(in billion US$)
Tariff reduction under RCEP will facilitate agricultural trade in ASEAN
The agricultural industry is one of the most important economic sectors for ASEAN countries.
6%
9%
12%
19%
21%
Share of ASEAN Major Markets of Agricultural
Export Commodities, 2021
Source: ASEAN Secretariat, US-ASEAN Business Council
18.5
21.3
22.1
24
25.8
2016
2017
2018
2019
2020
8.5
9
9.8
10.8
11.1
EXPORT
IMPORT
ASEAN
China
USA
EU
Japan
Thailand and Vietnam:
The world’s top two rice
exporters
Indonesia and Malaysia:
The world’s top producers and
exporters of palm oil, accounted for
about 90% of global output
ASEAN (collectively):
Top global exporter of natural
rubber, responsible for 75% of
global production

3.2 China’s Belt and Road Initiative (BRI)

34
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Rotterdam
Venice
Moscow
Istanbul
Xi’An
Tehran
Almaty
Urumuqi
Fuzhou
Jakarta
Hanoi
Kuala Lumpur
Kolkata
Nairobi
Gwandar
Overland route Maritime route
Belt & Road Initiative Map
The BRI – the new “Silk Road” connecting China with the rest of the world
The Belt and Road Initiative (BRI) is a strategy initiated by China to foster regional interaction through increased trade and
economic growth. It connects China with Europe, Africa, and other parts of Asia through an integrated maritime and land-based
network.
Countries involved
As of December 2021,
145 countries
have signed the Memorandum of
Understanding
5 official major goals
Athens
Djibouti
Policy
coordination
Facilities
connectivity
Unimpeded
trade
Financial
integration
Connecting
people

35
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BRI includes digital infrastructure developments through Digital Silk Road
China’s dual circulation strategy shifts BRI’s focus from infrastructure projects to digital transformation, green development, and
public health.
The dual circulation strategy aims to boost both internal and external economic circulations to drive the growth of China’s economy.
It also has the purpose of boosting innovation among domestic Chinese technology firms and making them more competitive on a
global scale.
Stage 1: Domestic
• The first stage is concentrated on domestic investment,
development, and implementation of digital infrastructure in
China under government support.
• Research and development of new technologies such as
mobile communication, e-commerce, and smart cities were
supported by the Chinese government.
• As a result, Chinese firms are able to climb up the value chain
and are prepared for global competition.
Stage 2: Internationalization (1/2)
Source: Council on Foreign Relations and Standard Chartered
• Chinese firms are encouraged to expand their operations and
technologies to internationalize businesses and technologies.
• Standardization through intergovernmental negotiations is
critical at this stage to allow a seamless connection between
the participating countries.
• The expansion of Chinese technology firms provides various
solutions for Southeast Asia, such as:
improvement in internet connection
acceleration of e-commerce growth
adoption of 5G technology

36
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Digital Silk Road (DSR) accelerates ASEAN’s digital ecosystem development
Strong support from local government boosted the development of DSR in ASEAN markets.
Stage 2: Internationalization (2/2)
Internationalization
measures
Description
E-commerce
platforms
Ant Financial, the financial services arm of Alibaba,
invested in Lazada, Tokopedia, and Bukalapak.
Develop logistic
infrastructure
Alibaba invested in local logistics players such as
Flash Express and Best Express. Cainiao Network,
the logistics arm of Alibaba, is building logistics
hubs and warehouse networks in Vietnam,
Indonesia, Malaysia and Singapore.
Digital expertise to
ASEAN
Alibaba provides its AI-supported translation
technology to facilitate cross-border e-commerce
transactions on Lazada.
Leading Chinese e-commerce companies such as Alibaba have
been gradually expanding their presence in Southeast Asia
through various measures.
Source: Council on Foreign Relations and Standard Chartered, Retail in Asia
▪ Indonesia established
favorable foreign
direct investment
policies and allows
100% foreign
ownership of e-
commerce
businesses.
▪ Alibaba led a US$1.1
billion funding round
for Tokopedia,
Indonesia’s tech
unicorn, in 2018.
▪ Thailand government
launched PromptPay e-
payment service which
supported the growth
and increased the
attractiveness of e-
commerce.
▪ In 2017, JD.com
partnered with
Thailand’s Central
Group, a local
conglomerate, to launch
the JD CENTRAL e-
commerce platform.
However, JD officially
exited Thailand in March
2023.
▪ Vietnam’s National
E-Commerce
Development plan
for 2021-2025
focuses on
boosting e-
commerce
adoption and an
increase in average
annual consumer
spending by 2025.
▪ JD.com invested in
Tiki, a major e-
commerce platform
in Vietnam.
Chinese tech giants such as Alibaba and JD received local
government support in key ASEAN markets.

37
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DSR is expected to increase China’s technology influence in ASEAN
Exercising influence and delivering strategic and economic returns for China is the final step of DSR development.
• The third stage focuses on strengthening the influence of
Chinese companies in ASEAN markets to generate
external economic returns to be remitted back to China.
• Patent fees, royalties or license fees of standard essential
patents, and operation and maintenance are examples of
economic returns.
• As countries increasingly become dependent on Chinese
technologies, the Chinese firms would be more familiar
with operating and maintaining the technologies and
therefore, win more operations and maintenance
contracts.
• DSR complements the Chinese government’s plans to
develop the digital economy globally through tech giants
such as Huawei, Alibaba, Tencent, and ZTE.
Stage 3: Exercising Influence
Source: Council on Foreign Relations and Standard Chartered, Center for Strategic & International Studies
E-commerce and online payment through Chinese
technology will become prevalent and difficult to be replaced
by other standards. Thus, countries will eventually be locked
into DSR-supported platforms and infrastructure.
Huawei offers 5G network equipment
that is around 30% cheaper than that
offered by Ericsson and Nokia. The first
5G test bed was built in Thailand.
Huawei Marine accomplished more than
12 undersea cable projects in Southeast
Asia. Those under-construction are
mainly in Indonesia and the Philippines.

38
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Deep dive into six
ASEAN countries

4.1 Indonesia

40
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Baidu search data exposes Chinese perceptions of Indonesia
Indonesian politics and tourism-related phrases are the most searched keywords by Chinese citizens.
Source: Baidu & Baidu Index,2022.
Associated words on Baidu Index* Suggested topics on Baidu Search^
^ The suggested topics after typing the name of the country in the search bar
* The associated words related to the name of the country

41
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Chinese netizens were interested in Indonesia’s politics and international events
The 18th Asian Games was
held in Jakarta, Indonesia.
• Pelosi‘s itinerary for her Asia
trip was released, which
included a visit to Indonesia.
• 77th anniversary of Indonesia's
independence.
• The G20 Summit
was held in Bali.
• A 6.8 magnitude
earthquake struck
Western
Indonesia.
Source: Baidu Index
Time frame: Jun 2017 – Dec 2022
Indonesia wanted to secure up to US$60 billion
from Chinese investors to build power plants,
factories, ports and infrastructure.
Chinese companies seek to shift
operations to Southeast Asia due
to the trade war with the US.
Source: Google Trends
Note: Google’s improvement in data collection system
Chinese netizens’ search frequency of “Indonesia/印度尼西亚” on Baidu
Indonesian netizens’ search frequency of “China” on Google

42
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Where in Indonesia are Chinese investing? (1/2)
Popular areas are concentrated in the southern parts of Indonesia around Jakarta.
BANDUNG–Indonesia‘s third most densely populated city and a popular
tourist destination: Bandung is expected to develop primarily in the hospitality
sector. Priority is expected to be given to residential development, as the city
does not yet have a high-end residential project despite vibrant real estate
development. Bandung will have new real estate investment opportunities in
the medium term in the context of recent infrastructure development plans
(including a high-speed rail link between the city and Jakarta).
TANGERANG–Industrial and manufacturing hub: Tangerang is a major
settlement for Chinese Indonesians. The region’s economy focused on trading,
financial services, and industrial sectors. Keppel Land announced that it will
cooperate with Metropolitan Land (Metland) subsidiary to build 450 single-
family houses in Metland Puri City. Thus, there will be an influx of middle-
class people in Tangerang, making Tangerang a good investment choice for
real estate investors.
Surabaya
Bandung
Tangerang
Lombok
Image source: Unsplash, Mrf, 2019
A street in Bandung Source: Juwai
Balikpapan

43
ALL RIGHTS RESERVED
Image source: Unsplash, Dony Wardhana, 2020
A view of Balikpapan City
Some areas became popular due to the growing number of middle-class groups, development of infrastructure, tourism, and the
change of the capital city.
BALIKPAPAN–The future capital city of Indonesia: The capital city of
Indonesia will be moved from Jakarta to Balikpapan in the hope of tackling
overpopulation of Java Island, especially in Jakarta. It will also reduce the
social and economic gap between the cities and regions. Various
infrastructures would be built, making Balikpapan a noteworthy investment.
SURABAYA–A great choice for commercial real estate and residential
developers seeking opportunities outside of Jakarta: Surabaya has a
growing number of middle-class residents. In addition, the land bank
availability and progressive infrastructure building make Surabaya a
worthwhile investment area.
LOMBOK–A well-established resort destination: The area has several large
hotels and high-end boutique hotels. At the same time, there is plenty of
entertainment for tourists, such as bars and restaurants, as well as
speedboats from Bali.
Image source: Unsplash, Tandya Rachmat, 2020
Senggigi Beach, West Lombok Regency
Source: Juwai
Where in Indonesia are Chinese investing? (2/2)

44
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1
1.6
2.9
20.8
41.5
0 10 20 30 40 50
Nigeria
Columbia
Thailand
Malaysia
Indonesia
Top 5 palm oil producing countries by share of global
production in 2019
Output(Million ton)
56%
28%
4%
2%
1%
China has strong demand for Indonesia's palm oil production
Indonesia is the largest producer of palm oil in the world, whilst China is one of the largest importers of palm oil globally.
• In 2019, Indonesia was the largest producer with 41.5 million tons
of production, accounting for 56.2% of total world production, most
of which was exported.
• Malaysia is in second place with 20.8 million tons of production
(28.2%), followed by Thailand with 2.9 million tons (3.9%).
• The rest of the producing countries produced 6 million tons, or
8.2% of the total global palm oil production.
Source: CME Group
• India and China mainly use palm oil for cooking. In the case of
the EU, a significant portion of imported palm oil is used for
biofuel production.
• About 75% of total palm oil imported by China is consumed in the
food sector. The growth potential of edible-grade palm oil
imports in China is huge.
Top importers of palm oil in 2021
Source: International Trade Centre
Source: MPOC
1
2
3
India
China
Pakistan
Share of total imported palm oil
18.9%
11.7%
6.7%
Output (Million ton) Global share (%)

45
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Case Study: Wilmar International Limited in China
Wilmar owns a 45% market share of edible oil in China in 2021; 65% of the raw materials for palm oil originated from Indonesia.
• Wilmar International Limted, formerly known as Wilmar Holdings, is one of the world‘s largest edible oil
refiners and was ranked 211th on the Fortune Global 500 in 2021.
• It has an annual turnover of over US$10 billion.
• Wilmar was founded in 1991 by Martua Sitorus, an Indonesian, and Kuok Khoon Hong, a Malaysian.
• Yihai Kerry Investment Co. LTD is one of the top 10
companies in the vegetable oil industry in China.
Headquartered in Shanghai, Yihai Kerry is a foreign-invested
enterprise jointly established by Wilmar International and The
Archer-Daniels-Midland Company in the USA.
• The Yihai Kerry Group focuses on brand building to create an
image of high-quality edible oil. The company has well-known
edible oil brands such as “Golden Dragonfish”, “Hujihua (胡姬
花)”, “Fulinmen (福临门)” and “Luhua (鲁花)”. The company‘s
flagship product, “Golden Dragonfish (金龙鱼)", has become
a well-known trademark in China.
• The extensive industrial presence of the Yihai Kerry Group in
the Chinese market has contributed to a strong reduction in
processing costs. It has 30 edible oil refineries in China. The
production bases cover a wide range of first and second-tier
cities in China with easy access to shipping and high
consumption levels and have a comprehensive and strong
industrial presence along the coast, Yangtze River, and inland to
control raw material and transportation costs.
• Yihai Kerry Group’s edible oil products have established a large
network of distributors in China and achieved extensive
coverage of offline sales channels. Yihai Kerry Group’s has
more than 2,000 distributors in China, covering more than 400
large and medium-sized cities across the country.
Source: Wilmar International Annual Report, CN Info

46
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Bubble tea and ice cream are gaining traction in Indonesia
Millennials and Gen-Z treat F&B as a part of their lifestyle as they are often prompted by influencers who are making culinary
review content who gained massive following. The tradition of consuming sweet food and hot weather reinforced their increased
consumption of ice cream and bubble tea. This creates an opportunity for Chinese F&B companies.
Ice cream Bubble tea
$527
MILLION
in 2019
10.4%
between 2015-2019
CAGR of
Source: MarketLine (2020)
The ice cream industry in Indonesia is growing.
• The Indonesian ice cream market can be divided into
three different categories: artisanal, impulse, and take-
home ice cream.
• Impulse ice cream, which is ice cream in the single-
serve category, is the major type sold in the Indonesian
market.
Source: MarketLine, GlobalData Source: GrabFood
Bubble tea is gaining enthusiasts in Indonesia.
GrabFood’s
bubble tea
sales
8,500%
in Indonesia (2018)
HIGHEST
GROWTH IN
ASEAN
GREW MORE THAN THE
Source: GrabFood (2019)
• Brown sugar boba milk tea is especially popular during the
“relaxing afternoon” period between 14:00-17:00.
• On average, Indonesians drink 3 cups of bubble tea per
month via GrabFood in 2018.
• Therefore, there is a possibility of higher cups purchase per
month when combined with the offline channel.

47
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Case Study: Mixue Bingcheng (蜜雪冰城) in Indonesia (1/2)
Factors that help Mixue succeed in Indonesia include affordable prices and social media promotion.
The brand name
蜜雪冰城 was first
officially launched.
2000 2021
Mixue first entered Indonesia by operating
in Bandung in March. It opened its first
store in Jakarta in November.
Sources: Baidu & LandX (2022)
A predecessor of Mixue Bingcheng (Mixue),
寒流刨冰, was launched in Zhengzhou. It
specializes in shaved ice and cold drinks.
1997 2022
Mixue has more than 300
shops spread across
three Indonesian islands.
• One of the key drivers that help Mixue succeed in Indonesia is the
cheap price point. In Indonesia, their product price ranges from
IDR 8,000 - 22,000 (US$ 0.53 - 1.45).
• Mixue Indonesia’s Instagram has a follower of 57.8 thousand and
the Jakarta stores has a total of more than 3,700 reviews on Google.
• TikTok also plays a significant role in making Mixue famous in
Indonesia.
Source: Instagram, Compiled through Google by Daxue Consulting, LandX
• The cold and refreshing product of Mixue also suits the
tropical weather of Indonesia.
• Some of Mixue’s best-selling products in Indonesia are:
▪ Mixue Ice Cream
▪ Boba Sundae
▪ Fresh Squeezed Lemonade
▪ Strawberry Mi Shake
Source: Tribunnews

48
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Brand Mixue Chatime KOI Thé Kokumi Xing Fu Tang
Number of
Stores in Jakarta
53 92 25 16 11
Case Study: Mixue Bingcheng (蜜雪冰城) in Indonesia (2/2)
The franchise model helped the brand expand quickly in Indonesia.
Location Franchise Fee
Provincial capitals CNY11,000/year (US$1,621/year)
Cities CNY9,000/year (US$1,326/year)
County-level cities CNY7,000/year (US$1,031/year)
• Mixue utilizes a franchise model to expand, both locally in China
and globally. The franchise fee varies based on location.
• In Indonesia, there are already around 300 Mixue stores on three
different islands: Java, Sumatra and Bali by June 2022.
Source: LandX, Mixue Bingcheng
• Comparing the number of Mixue stores to popular brand chains
with similar products, Mixue has the second highest store count.
• Despite placing second, Mixue reached that number within two
years while Chatime achieved opening 92 stores in Indonesia
since its market entry in 2011.
Sources: Kumparan (2022), Chatime, KOI Thé, Kokumi & Xing Fu Tang
Mixue Bingcheng at Sutoyo, Yogyakarta
Mixue Bingcheng at Depok, West Java

49
ALL RIGHTS RESERVED
Search trends of Mixue on Google in Indonesia
Time frame: Dec 2021 – Dec 2022
Source: Google Trends, Indonesia Investments
• Opened the first Mixue outlet in the
shopping mall at the Mall Olympic Garden
(MOG).
• Halal status of Mixue
Related queries
Is Mixue halal? Mixue ice cream
Mixue ice cream is priced
affordably at IDR8,000
(US$0.53), which created a
buzz on social media when it
was launched in Indonesia.
About 88% of Indonesia’s
population identified themselves as
Muslims. Halal food is food (and
drinks) that abides by Islamic law
and can be consumed by Muslims.

50
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Best selling products from Indonesia on Tmall (Excluding tourism)
PAPATONK
SHRIMP CRACKERS
WASUKA
CHOCOLATE PREMIUM ROLLED WAFER
MILKITA
ASSORTED MILK LOLLIPOP
Price: CNY25.90 (US$3.81)
Monthly sales: 3,000+
Reviews: 10,000+
Popularity due to: Long validity period,
good taste, cheap
Monthly sales: 400+
Reviews: 8,000+
Popularity due to: Very crispy, not
greasy, rich chocolate flavor
Monthly sales: 200+
Reviews: 300+
Popularity due to: Exquisite packaging,
great taste, value-for-money
Source: Tmall, 2022

4.2 Malaysia

52
ALL RIGHTS RESERVED
Chinese netizens are interested in Malaysia’s tourism, education, and ethnic.
Associated words on Baidu Index*
Baidu search data exposes Chinese perceptions of Malaysia
Suggested words on Baidu Search^

53
ALL RIGHTS RESERVED
Malaysia confirms the first citizen
infected with COVID-19 virus. Malaysia accused China of
breaching airspace.
Pelosi arrived in Malaysia
as tensions rose over the
possibility of Taiwan’s visit.
Chinese netizens were enthusiastic about Malaysia’s politics
Tun Mahathir was
sworn in as the
new prime minister.
Prime minister Tun
Mahathir resigned.
Pelosi arrived in
Kuala Lumpur.
Prime Minister
Muhyiddin delivered a
report on the "National
Recovery Plan“.
Source: Baidu Index
Chinese netizens’ search frequency of “Malaysia/马来西亚” on Baidu
Malaysian netizens’ search frequency of “China” on Google

54
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Where in Malaysia are Chinese investing? (1/2)
Popular areas are concentrated around Kuala Lumpur and Peninsula Malaysia.
KUALA LUMPUR—The capital of Malaysia & the political, economic and
cultural center of Malaysia: Kuala Lumpur is one of the most cosmopolitan
cities in Southeast Asia and one of Southeast Asia's financial centers. Kuala
Lumpur's tourism and cultural and entertainment industries are also attracting
more tourists and foreign investors.
BANGSAR—The expats’ neighborhood: It has excellent infrastructure, a wealth
of educational resources and newer medical facilities. Bangsar has a wide
range of bars and high-end restaurants, which makes it one of the popular
places to live for expats.
DAMANSARA HEIGHTS—“The Beverly Hills of Kuala Lumpur”: It is ranked as
one of the most expensive housing areas in Malaysia. The area has convenient
transportation, close proximity to premium shopping centers, and amenities
such as plazas, parks, and country clubs.
Kuala Lumpur
Bangsar
Damansara
Heights KLCC
Penang
Selangor
Image source: Unsplash, Esmonde Yong, 2020
A view of the Petronas Tower, Kuala Lumpur
Source: Juwai

55
ALL RIGHTS RESERVED
Where in Malaysia are Chinese investing? (2/2)
Chinese investors also invested in well-established states such as Selangor and Penang
KUALA LUMPUR CITY CENTRE—The cosmopolitan of Malaysia: The famous
Twin Towers, the International Convention and Exhibition Center, the National
Gallery, the National Museum, and other important facilities are all located here,
as well as an international Islamic university. There are also many shopping
malls, luxury hotels, mansions and corporate headquarters in the area.
PENANG—The Pearl of The Orient: Penang has a wealth of tourism resources.
Penang is not only known for its multicultural and harmonious development, but
also for its reputation as the "electronics manufacturing base". The city is highly
urbanized and industrialized.
SELANGOR—The richest state in Malaysia: The region‘s main economic
activities are in the service, manufacturing and construction sectors. Selangor is
home to major industrial areas, and it has the busiest port in Malaysia, Port Klang.
Image source: Unsplash, Wan San Yip, 2020
Image source: Unsplash, Dave Yap, 2022
A view of Penang Island
A view of Port Klang Source: Juwai

56
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Malaysian consumers are avid tea drinkers
According to Grab’s Food Trends Report 2020/2021 in Malaysia, tea and bubble tea are in the top 10 food categories that are most
searched on GrabFood.
Source: GrabFood (2021)
• Malaysians like to start
their day with coffee & tea.
• Coffee & tea orders
increased by 6.2x in 2020.
• Tea and teh Tarik (milk
tea) are among the top
items ordered for
breakfast.
LUNCH
12:00 – 13:00
TEATIME
14:00 – 17:00
DINNER
18:00 – 19:00
SUPPER
22:00 – 05:00
• The second highest
consumption time as
compared with other
mealtimes.
• Brown sugar milk tea
and tea are popular
for lunch.
• The meal which
people usually spend
the most budget on.
• Brown sugar pearl
milk tea and teh tarik
are popular for
dinner.
• Milk teas are
especially popular
during teatime.
• An average of 4
brown sugar milk
teas were ordered
every minute during
this period.
Teh tarik and royal
milk tea are the top
items ordered for
supper.
BREAKFAST
09:00 – 10:00
3
On average, each
Malaysian drinks
cups of bubble
tea per month
The tropical climate and preference of Malaysian consumers boosted the sales of tea drinks

57
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Case Study: CHAGEE 霸王茶姬 (1/2)
Chagee is one of the most popular Chinese tea-based drinks brands in Malaysia.
A Premium tea
beverage, 霸王茶姬,
was founded in
November, in Yunnan.
2017
霸王茶姬 entered
Malaysia on August
10, opening its first
store in Petaling Jaya.
2019 2021
As of November, 霸王茶姬 has
28 stores in Malaysia.
• Malaysia branches officially changed the logo and brand
name to CHAGEE 霸王茶姬 on April 2.
• Datuk Lee Chong Wei, Malaysia’s former badminton silver
medalist, became the brand ambassador for CHAGEE.
2022
Source: Jiemian, Chagee, Baidu, New Straits Times
300,000
Average monthly turnover of
CNY
35,000
The flagship store sold
CUPS IN ONE DAY
70% are located near big
names such as Starbucks
and McDonald's
STORES
3,000+
“Malaysia’s Queuing King”
PERSON/DAY
(US$44,222)

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Case Study: CHAGEE 霸王茶姬 (2/2)
CHAGEE’s success in Malaysia is due to its branding strategy and ability to change consumers’ behavior.
Tea is an important part of Malaysians’ culture. The country’s tea market is expected to reach US$2.75 billion in
2025, a CAGR of 5.54% per year for the period 2020-2025.
BEHAVIOR
BRANDING
Source: Williams & Marshall Strategy (2020)
• CHAGEE collaborated with Royal Selangor, a national
pewter manufacturer and retailer, to launch a crafted cup
and managed to sell 3,000 units.
• It also launched the “National Day” limited edition cup
during the National Day of Malaysia where people can
doodle on it.
The cup from the
collaboration with
Royal Selangor
The National
Day Limited
Edition cup
Source: Jiemian, Williams & Marshall Strategy
• Malaysian consumers are more attracted to products that have high-quality and health benefits.
• CHAGEE managed to associate the brand with “healthy milk tea” among local consumers. Its “fresh milk tea”
series is popular, accounting for 60% of the total sales.
• Malaysians also prefer functional botanical blends1 and single estate artisanal teas2. Thus, CHAGEE sourced its
main raw materials from more than 10 countries and regions. They also offer a variety of series so people can
experience different flavors.
1 Tea using herbs/fruits that have health benefits.
2 Tea leaves that are harvested from one estate, not blended. Focuses on a specific taste and flavor which is dependent on the location of the estate.

59
ALL RIGHTS RESERVED
Search trends of CHAGEE 霸王茶姬 on Google in Malaysia
Source: Google Trends, Chagee
Badminton legend Lee Chong Wei was
announced as the ambassador of CHAGEE.
Related queries
Chagee Menu Chagee outlets
Milk teas such as Osmanthus
Oolong Milk Tea and Glutinous
Rice Milk Tea are among the
featured drinks in Malaysia.

60
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Best selling products from Malaysia on Tmall (Excluding tourism)
JULIE’S LE-MOND PUFF SANDWICH CHEDDAR
CHEESE CREAM CRACKERS
MICO
CREAM SANDWICH BISCUITS
MIAOW MIAOW
SQUID FLAVORED CRACKERS
Source: Tmall, 2022
Reviews: 70,000+
Popularity due to: Strong cheese
flavor, not too sweet or greasy, lightly
salted, trustworthy food quality
Price: CNY9.90–37.90 (US$1.46–5.58)
Reviews: 2,000+
Popularity due to: Inexpensive,
convenient independent packaging,
suitable for children
Monthly sales: 200+
Reviews: 300+
Popularity due to: Crispy, very tasty,
good-looking packaging

4.3 Philippines

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ALL RIGHTS RESERVED
Chinese internet users are interested in the Philippines’ presidential election held in May 2022 and its political history.
Associated words on Baidu Index*
Baidu search data exposes Chinese perceptions of the Philippines

63
ALL RIGHTS RESERVED
Chinese netizens searched for politics and humanitarian aid news in the Philippines
President Xi had a
meeting with Arroyo
and Soto.
Taal Volcano erupted.
China sent medical aid
to the Philippines.
Marcos Jr. won the
presidential election.
Pelosi's plane
entered the
Philippines’
airspace.
China assured the Philippines
that no territory will be occupied
in the South China Sea.
Chinese President Xi Jinping
visited the Philippines to ease
tensions over the disputed
South China Sea.
China donated 100,000 COVID-19 test
kits and other medical supplies to the
Philippines to combat COVID-19.
Source: Baidu Index
Chinese netizens’ search frequency of “Philippines/菲律宾” on Baidu
Philippines netizens’ search frequency of “China” on Google

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Where in the Philippines are Chinese investing? (1/2)
Popular areas in the Philippines are concentrated in Metropolitan Manila.
MAKATI—The traditional financial center of the Philippines: Home to the largest
number of major banks and multinational corporations in the country. Most
foreign embassies are located in Makati, thus making Makati well established
and convenient in all aspects. Besides, Makati is also known as the main cultural
and entertainment center of Metro Manila.
ORTIGAS CENTER—The second highest ranked business district: Ortigas Center
is the second most central business area in the Philippines after Makati CBD. Its
status in the Philippines is equivalent to the Lujiazui Financial District in
Shanghai, China. The area has many high-end office buildings, business centers
and five-star hotels, such as the headquarters of the Asian Development Bank
(ADB) and the Philippine Stock Exchange. Ortigas is the most popular location
for local multinational companies because of its relatively cheaper office rents,
and cleaner and safer environment compared to the traditional financial center
of Makati.
Makati
BGC
Ortigas Center
Pasay
Image source: Unsplash, Alexes Gerard, 2020
A view of Makati City Source: Juwai

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Where in the Philippines are Chinese investing? (2/2)
Areas located close to transportation hubs and emerging financial districts are becoming popular.
PASAY—Transportation, Logistics and Political Center: The Ninoy Aquino
International Airport is located in Pasay. The Pasay area is home to aviation
and logistics companies such as Philippine Airlines, PAL Express, and Air Juan.
Pasay is also home to important Philippine government offices such as the
Senate, the Department of Foreign Affairs (DFA), and the National Bank of the
Philippines.
BONIFACIO GLOBAL CITY (BGC)—Emerging Financial and Central Business
District: Since 1995, it developed rapidly like China’s Shanghai Pudong
Development. Today, the area is a thriving new financial, business and
residential district that has attracted many foreign companies and investors. It
has modern skyscrapers, a well-developed commercial hub and was dubbed
the most pedestrian-friendly area of Metro Manila.
Image source: Shutterstock, CGi Heart, 2017
Image source: Unsplash, OJ Serrano, 2020
An areal view of Pasay
A view of Bonifacio Global City
Source: Juwai

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The Philippines’ coconut exports and trade with China
The rising popularity of coconut-related drinks among Chinese consumers contributed to strong demand for coconut imports.
Top 5 categories of Philippines exports to China in 2021
Source: National Development and Reform Commission; China State Farms & Tropical Agriculture
1
2
3
Manufacturing products
Mineral products
Agricultural products
Export value (US$ Billion)
7.79
2.77
0.83
4 Fishery products 0.11
5 Forestry products 0.04
• In 2021, China remained the largest trading partner and the top
source of imports for the Philippines and rose to the second
largest export market for the Philippines‘ products. Philippines
exports to China reached US$11.6 billion, up 17.5% year-on-year,
accounting for 15.5% of total Philippine exports.
• Coconut product exports to China are growing rapidly. Agricultural
exports are the third most important category of Philippine exports
to China, reaching US$830 million in 2021, while coconut products
account for 18.1% of total agricultural exports at US$150 million,
up 48.2% year-on-year.
• There is a huge coconut import demand in China, and the
Philippines has the potential to expand its coconut product
exports to China. The Philippines is the world‘s largest coconut-
growing country, with global exports of coconut products of nearly
$2 billion in 2021. China’s domestic coconut production is critically
insufficient to meet local demands. Thus, there is a strong demand
for coconut imports from the Philippines.
- Coconut 0.15

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Coconut is a major agricultural export from the Philippines
Coconut products are often processed to lengthen the storage time.
Source: Century Pacific Food, Inc.
• CNPF is one of the largest Philippine food companies
based in Manila and first started in 1978.
• Coco Mama and Vita Coco are the company’s brands
that are focused on coconut-based products.
• Its product received quality certifications from the BRC,
HACCP, Organic (Eco-Cert), Halal, and Kosher.
Aqua Coco is sold on Tmall, its product claims:
• 100% natural coconut water
• Good source of potassium
Coco Mama brand sells coconut cream
made from fresh coconut which is available
on Tmall.
• NUCO is a company from the Philippines which specializes in
organic and natural coconut products.
• The company offers coconut oils, coconut wraps, coconut
crunch, coconut oil vegan mayo, and coconut cider vinegar.
• Its coconut wraps have flavor variations such as turmeric,
moringa, and cinnamon. The wraps could be found on Tmall.
Coconut wrap product claims:
• US$A-certified organic and
non-GMO.
• Free of gluten, grains,
yeast, starch, soy, egg, lard,
and dairy.
• Vegan.
Source: NUCO

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2.18 2.28
2.85
2.69
2.34 2.37 2.44
2019 2020 2021 2022* 2023* 2024* 2025*
The Philippines PC Sales
(in million units)
The Philippines’ PC industry grew during the pandemic lockdown period
More PCs were bought by workers and students in the Philippines who had to work from home and pursue online schooling due to
the travel restriction due to COVID-19.
* signifies estimation
Source: Philippines News Agency (2022)
+30.7%
What Filipinos look for when buying a PC
Competitive pricing
Great specs
Themed laptops
(i.e., super-hero,
nature etc.)
Compelling promotional
campaigns
Source: Philippines News Agency (2022)
Boosted by the increased
demand for personal PCs
during the lockdown.

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Case Study: Lenovo (1/2)
Lenovo performed well in the Philippines market and ranked as the second-best selling PC brand with a 15% market share.
The computer manufacturer
company, Lenovo Group, was
founded in Beijing, China.
1984
Lenovo has developed an extensive network of 81
Philippines corporate resellers, 17 mobile resellers, and
50 premier storefronts.
2020
Sources: Forbes (2016), Lenovo & Back End News (2020)
According to International Data Corp.,
Lenovo is the top monitor brand in the
Philippines with a 22% market share.
2022
ThinkPad T16
Lenovo is among the top brands for PCs in the Philippines. In
2021, it ranks second in terms of PC market share.
15% of the Philippines PC
market share in 2021
LENOVO
HAS
Source: Public News Agency (2022)
Lenovo provides the full product offerings in the Philippines
which can be divided into the following 4 categories:
Source: Lenovo
• PC & Tablets
• Phones
• Smart devices
• Servers & storage

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43
MILLION
65% USES PC
12.9%
YEARLY
INCREASE
GAMERS
ACTIVE
in 2021
since 2017
Gamers
Case Study: Lenovo (2/2)
Lenovo expanded its market share in the Philippines by providing appliances that suit the needs of its targeted customers.
Sources: New Zoo, YCP Solidiance
• Taking advantage of the work-from-home (WFH) trend,
Lenovo Philippines is promoting a “hybrid lifestyle” by
encouraging home and workspace mergers.
• Lenovo’s ThinkPad and ThinkVision product lines are
used to promote the “hybrid lifestyle” in the Philippines.
Before the pandemic, the sales of gaming PCs in the
Philippines were less than 100,000 units in 2019. In 2022, the
number grew to 241,000 units.
Legion gaming lineup plays a significant role for Lenovo in
expanding its market share. After the introduction of the
devices and the establishment of the Legion PHL
community, it is now the fastest-growing gaming notebook
brand in the Philippines.
Source: Business World, : Business World, ABS-CBN News
Legion Y740Si
ThinkVision 23.8”
Gaming PCs WFH workspace

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Search trends of Lenovo on Google in the Philippines
Lenovo Philippines has decided to re-enter the
local smartphone market with the debut of
three entry-level price segment devices –
Lenovo K5 Play, K5 Pro, and the S5 Pro.
Related queries
Lenovo IdeaPad S145 Lenovo Ryzen 5
An affordable gaming laptop
with AMD processors.
Entry-level laptop
ideal for students.

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Best selling products from Philippines on Tmall (Excluding tourism products)
SANMIUSUNFLOWER
CHEESE CREAM CRACKERS
REBISCO
DOOWEE DONUT
LA RESURRECCION CHOCOLATE
Source: Tmall, 2022
Monthly sales: 400+
Reviews: 1,000+
Popularity due to: High value for money,
creamy taste, good packaging, crispy
Monthly sales: 200+
Reviews: 300+
Popularity due to: Convenient
packaging, rich flavor, good taste, long
shelf life, soft, moderately sweet
Price: CNY27.90-235 (US$4.11–34.60)
Monthly sales: 500+
Reviews: 3,000+
Popularity due to: Trustworthy quality,
great taste, strong chocolate aroma,
nice packaging, goes well with milk

4.4 Singapore

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Baidu users are interested in Singapore’s demographics, economy, geopolitics.
Baidu search data exposes Chinese perceptions of Singapore
Lee Hsien Loong
Hong Kong
Singapore
NTU
National territory
Time
Malaysia
Cost-effective
COVID-19
Back to China
Boten-Vientiane railway
Ethnic Chinese
RMB
A50
Lianhe Zaobao
Exchange rate
Iron Ore Futures

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Chinese netizens are interested in Singapore’s political news
Jeong-Eun Kim
and Donald
Trump met for
the first time in
Singapore.
The Prime Minister of
Singapore claimed
that the United States
cannot stop the rise
of China.
The aerobatic team of
the Chinese Air Force
participates in the
opening ceremony of
the Singapore Airshow.
Pelosi landed in
Singapore, the first
stop of her Asia tour.
Singapore closed borders to all foreign
travellers from China to curb the spread
of coronavirus.
Singapore and China signed 14
agreements at the Singapore-
China bilateral meeting.
Source: Baidu Index
Chinese netizens’ search frequency of “Singapore/新加坡” on Baidu
Singaporean netizens’ search frequency of “China” on Google

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Where in Singapore are Chinese investing? (1/2)
Popular areas in the city-state are close to financial hubs and good schools
ORCHARD ROAD—Luxury shopping and entertainment area: Most popular
tourist destination in Singapore and the ninth most expensive shopping
location in Asia Pacific. It is one of the top destinations for Chinese property
buyers, along with Sentosa Cove, Marina Bay, and Sengkang.
BUKIT TIMAH—A high-class residential with plenty of green areas: It is
located in District 10, which is the most expensive district in Singapore. Its
luxury condominiums and landed properties attracted high net-worth investors
worldwide.
MARINA BAY—Leading financial center of Singapore: It is the epitome of
Singapore’s urban transformation efforts which comprises the city state’s new
financial center, residential, hotel, and entertainment. The land reclamation
work starts in 1969 and ended in 1992 under the Singapore government’s
Urban Redevelopment Authority (URA) Master Plan.
Orchard Road
Bukit Timah
East Coast
Bishan
Marina Bay
Holland Village
Image source: Unsplash, Hu Chen, 2018
A view of Marina Bay Sands and ArtsScience, Marina Bay
Source: Juwai

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Where in Singapore are Chinese investing? (2/2)
Close proximation to transportation, top schools, shopping roads, and other amenities
EAST COAST—Singapore's most popular coastal district: It is in close vicinity
to the airport, city center, top schools, and Singapore’s East Coast Park. East
Coast’s strategic location made it a popular property investment destination
among Mainland China real estate investors who come from China’s
landbound cities.
BISHAN—The central region of Singapore: An established residential
neighborhood with well-developed housing area and top-tier schools in the
vicinity. Bishan-Ang Mo Kio Park is one of the largest (62 hectares) and most
popular parks in Singapore.
HOLLAND VILLAGE—One of the most popular neighborhoods for expatriates:
It has green suburban streets and neighborhood with a mixture of larger family
homes, condominiums and apartment blocks, and a number of gated
communities. It is also in proximity to the Botanic Gardens, Orchard Road,
some of the best schools, and open green spaces.
Image source: Unsplash, Chuttersnap, 2016
Image source: Unsplash, K8, 2019
A shopping mall at Orchard Road
A bird’s eye view of Bishan Source: Juwai

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The demand for electrical vehicles (EVs) is growing in Singapore
Environmental concerns, long-term cost savings, and government incentives are cited as the main reasons for the shift towards EVs.
Source: Bloomberg, Ernst & Young, Singapore Business Review, Budget Direct Insurance
• 50% of Singapore respondents choose to
purchase EVs due to concerns about
environmental issues.
• Public transport is the least preferred
transportation mode among respondents
due to the pandemic. 47% of them believed
that travelling through a personal car could
protect their wellbeing.
• In Singapore, an additional 10-50% will be
added to the standard road tax when the
vehicle is over 10 years old. This tax policy
could encourage people to buy new cars,
augmenting the growth of EVs.
The annual sales of EVs are projected to reach 14.8% of
the market share in 2029, representing around 16,000
units sold annually in Singapore.
Rising demand for EVs in Singapore Reasons behind the increase in EV demand
Source: Ernst & Young
SINGAPORE
CONSUMERS
55%
surveyed
plan to purchase
an EV as their
next car
In the first
FIVE months
of 2022
8.4%
of total vehicle
registrations
are EVs
Double
Which is more than
of entire 2021
20x
Over
as compared to 2020
&

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Build Your Dreams (BYD), an
automotive manufacturer, was
founded and headquartered in
Shenzhen, Guangdong.
2003
BYD debuted in Singapore
with its pure electric e6 36
cars and on-call leasing
services.
2014 2016
Go-Ahead Singapore:
Singapore’s first fully-
electric bus was trialed
using BYD’s K9 bus
As of June 2018,
BYD Singapore
has built 122
charging stations.
2018 2022
A cumulative total of 631 BYD
new cars were registered in
Singapore by July 2022 since
it first entered Singapore.
Case study: BYD (1/2)
BYD provides environmentally friendly and value-for-money EVs in Singapore. It experienced a sales spike in 2022.
Source: Singapore Land Transport Authority (2022)
3
89
430
2020 2021 2022*
Number of BYD New Cars Registration
in Singapore
* For the year 2022, the data is until July
Source: Singapore Land Transport Authority
BYD ATTO 3
Of the 8.4% EV registrations in the
first five months of 2022 in Singapore,
1.8% is taken by BYD.
around
BYD is seeing a sharp
increase in new car
registrations in 2022.
Sources: China Daily, Land Transport Guru, BYD Singapore & Singapore Land Transport Authority

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Case study: BYD (2/2)
Consumers in Singapore are relatively brand-conscious and put an emphasis on product quality.
Model List Price
M3e SGD184,888 (US$139,426)
New e6 SGD204,888 (US$154,508)
ALL-NEW e6 ADVANCE
Edition
SGD208,888 (US$157,524)
ALL-NEW ATTO 3 SGD246,888 (US$186,180)
Source: BYD Singapore, Sgcarmart
Remarks: The price list is obtained in August 2022
The best-selling EV model in
Singapore in 2021 is Tesla Model
3 sedan. It’s priced around
SGD208,000 (US$157,524).
• Singapore has a relatively high GDP. In December
2021, its GDP per capita was around US$72,766.
Moreover, Singapore is a brand-conscious market.
• When Cherry QQ became the first Chinese car brand
to enter Singapore’s market in 2006, they had the
reputation of being cheap and low quality. Hence, they
disappeared from the market.
• Therefore, for the less-price-sensitive Singapore
market, product quality is a vital aspect that BYD
focused on.
• The experimental EV projects in Singapore are also
promoting the use of EV among consumers. BYD
provides EVs to one of the taxi operators, HDTT and e-
buses in Singapore.
BYD is priced lower than Tesla in Singapore BYD focused on quality rather than price
Sources: BYD Singapore, CEIC Data & OneShift by Carousell (2019)
Sources: Sgcarmart

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Search trends of BYD on Google in Singapore
Source: Google Trends, Paul Tan, Business Times
Related queries
BYD Atto 3 BYD e6
• BYD announced that its best-selling Han EV had
won the 2021 iF Product Design Award.
• The Singapore version of BYD e6 was launched.
The second-gen multi-purpose
vehicle (MPV) was introduced
in March 2021.
The electric Sport Utility
Vehicle (SUV) was
launched in July 2022.

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Best selling products from Singapore on Tmall (Excluding tourism)
THE GOLDEN DUCK
SALTED EGG YOLK POTATO RIDGES
TWG TEA
BREAKFAST EARL GREY TEA
YA KUN
KAYA
Source: Tmall, 2022
Reviews: 500+
Popularity due to: Good taste, crispy
texture, affordable price
Price: CNY150 (US$22.08)
Monthly sales: 400+
Reviews: 1,000+
Popularity due to: Suitable for gifts, great tea
color, mellow aroma, beautiful packaging
Price: CNY68 (US$10)
Reviews: 3,000+
Popularity due to: Long validity period,
good freshness, good taste, moderate
sweetness, high value for money

4.5 Thailand

85
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Chinese netizens searched for travel accident and political news in Thailand
Premier Li Keqiang paid an
official visit to Thailand.
Two cruise ships carrying Chinese
tourists capsized during a severe
storm near Phuket Island.
Source: Baidu Index
Thailand found the
COVID-19 virus among
travellers from China.
China's construction of a $402 million submarine
for Thailand was obstructed by Germany's refusal
to export the engines to Beijing as promised.
Chinese netizens’ search frequency of “Thailand/泰国” on Baidu
Thai netizens’ search frequency of “China” on Google

86
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Where in Thailand are Chinese investing? (1/2)
Bangkok, Pattaya, and Sathon are places that generate high rental returns.
SUKHUMVIT—Bangkok's largest residential and commercial area: It is an
important CBD development area with Bangkok Mass Transit System (BTS)
MRT, many offices and buildings. It is also one of the most important
residential areas for foreigners and Thais.
SILOM/SATHON—Bangkok's oldest CBD financial and residential area: It is
known as the "Wall Street of Thailand". The area is home to many of Thailand's
largest corporations, including Massive Group and Bangkok Bank. There are
many high-rise condominiums in the area, making it a very convenient place to
live. There is also an increasing trend where elite people move to this area.
CENTRAL PATTAYA—Real estate projects with high potential for appreciation:
It is the heart of Pattaya. It has a full range of commercial facilities such as
restaurants, bars, shopping centers and entertainment venues. Thus, it is
convenient to live here. Central Pattaya is suitable for all types of investors and
tenants. The rental and occupancy rates in this area are high.
Sukhumvit
Silom/Sathon
Central Pattaya
Pratumnak Hill
Patong Beach
Image source: Unsplash, Ashwani Verma, 2021
The Coral Islands, Pattaya
Source: Juwai

87
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Where in Thailand are Chinese investing? (2/2)
Beaches that offer scenic views attracted international investors.
PRATUMNAK HILL—Convenient location with a nice view: Pratumnak Hill has
a high elevation and faces the sea. Many condominium units on Patna Hill
have ocean views. In addition, it is conveniently located close to downtown
Pattaya and within 15 minutes of the major commercial centers.
PATONG BEACH—The busiest and liveliest beach with the best facilities:
70% of the island's hotels, resorts and restaurants are located here. The
beach is surrounded by restaurants ranging from local to Michelin restaurants.
Various hotel chains and large shopping centers are also located in the area.
Visitors can do all kinds of leisure activities here. This area is celebrated by
long-term investors globally who are looking for an occasional vacation every
year and whose main objective is the rental return.
Image source: Unsplash, Norbert Braun, 2022
Image source: Freepik, User6832922
A view from Pratumnak Hill
A view of the Patong Beach
Source: Juwai

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Thailand‘s top 10 exports to China and share of exports to China
in 2020 (Million US$)
Category Exports to China Share of exports to China
Plastic raw materials 2,985 37.4%
Fruits 2,909 71.2%
Rubber goods 2,820 23.3%
Storage device 2,208 11.8%
Chemical products 1,624 24.1%
Cassava 1,600 59.8%
Auto & moto parts 1,390 6.5%
Rubber 1,284 36.4%
Woods 1,063 46.6%
Integrated circuits 703 9.8%
Plastic raw materials and fruits dominate Thailand’s exports to China
There is a high demand for tropical fruits from Thailand among Chinese consumers and plastic raw materials for industrial usage.
• Plastic raw materials are Thailand's largest
export category to China. Yet, exports of
industrial raw materials to China have been on
a declining trend since 2020.
• Fruits are Thailand's second largest export to
China and have been growing rapidly for three
consecutive years from 2018 to 2020. Fruit
exports from Thailand to China increased by
nearly 40% year-on-year in 2020.
• The Thailand-China Free Trade Agreement
deemed fruits as tariff-free products, which
can significantly reduce export costs and
provide price advantages in the market.
Source: Thailand Agricultural Department; zcqtz

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Thailand, 38.2%
Chile, 29.0%
Vietnam, 9.4%
Philippines, 4.1%
New Zealand, 3.4%
Peru, 3.0%
Others, 13.0%
Source of China's fruit imports in the first half of 2022
Durian is the most imported fruit by China from Thailand in 2021
China's large population contributes to the strong demand for fresh fruits. Thailand is located in the tropics and could provide
sufficient quantities of fruit for exports for three seasons a year. Thus, Thailand could export a rich variety of tropical fruits to China.
5,651
227,762
333,729
467,971
807,226
Mango
Mangosteen
Coconut
Longan
Durian
China fruit imports from Thailand in 2021
(in tons)
Source: Thailand Ministry of Agriculture and Cooperatives
Source: China Chamber of Commerce of I/E/ of Foodstuffs (2022)
In 2021, durians with a
total value of US$3.1
billion were exported
from Thailand to China,
illustrating 108% year-
on-year growth.

90
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Golden pillow durian is the best-selling variant in China
It is sweeter than other variants and could be kept for a longer period of time after being frozen.
• A search on Tmall shows that the “golden pillow” durian
from Thailand is the best-selling variant. A store on Tmall
even has more than 10,000 product sales each month.
• On Tmall, golden pillow durians with a weight of around
1.5 – 2 kg are priced at approximately CNY130 (US$19).
Sources: Global Times, IDE-JETRO, and China International Import Expo
THAI FRUIT EXPORTS TO CHINA IN THE FIRST HALF OF 2022
Exports to China (Million ton) Value of Exports (Billion THB)
1.16 92
• Founded in 2014, Mr. Fruity is a producer and
exporter of Thailand’s fruits with premium
Monthong durian as their main export product.
• Mr. Fruity offers frozen durians and various fresh
fruits such as durians, longans, coconuts,
mangosteens, mangoes, and so on.
• Hongjiu Fruit is a Chinese multi-brand fruit
company focusing on the supply chain of fruits
from both domestic (China) and overseas.
• One of their brands is MengXiang (猛象) which
specializes in importing Thailand durians.
Sources: Mr. Fruity, Hongjiu Fruit, Thailand Agricultural Department, Ministry of Commerce of China
• Monthong durian, also known as the golden pillow
durian, is the main variety exported to China from
Thailand as Monthong is sweet and can be kept for a
long time without changing its texture after freezing.

91
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Thailand is the biggest automotive producer in ASEAN
EVs from Chinese manufacturers are taking 58% of Thailand’s EV market share in 2021.
• In 2019, Thailand is the 11th largest automotive producer in
the world and the biggest in ASEAN. It attracts international
automotive manufacturers to set up plants in Thailand.
• Great Wall Motor from China owns a manufacturing plant
in Rayong Province, Thailand. This is the manufacturer’s
second-largest full-production manufacturing facility
outside China. In less than a year, the manufacturing plant
has hired 700 people and is targeted to reach a total
workforce of 1,000 by 2021.
• Chinese EV manufacturers are taking a substantial portion
of the EV industry in Thailand.
20,379
32,248 35,270
48,581 45,990
2018 2019 2020 2021 2022*
Number of new EV registration in Thailand
58%
of the market
share in 2021
80%
in 2022
Expected to take
&
Source: Nikkei Asia (2022)
Source: Electric Vehicle Association of Thailand (2022)
*Until 30 June 2022
900
4,400
12,000
36,500
2022 2025 2030 2035
Public fast chargers in Thailand
Quick charging
infrastructure is
also growing in
Thailand.
Source: Electric Vehicle Association of Thailand (2022)

92
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Case study: Great Wall Motor
Named after the Great Wall of China,
Great Wall Motor (GWM), a private
Chinese automobile manufacturer,
was founded in Baoding, Hebei.
1984 2021
• GWM entered Thailand on February 9th.
• The company officially opened its first
smart factory on June 9th in Rayong
province, Thailand.
2022
• To date, GWM has 5 brands in China with only 2 brands
currently available in Thailand: HAVAL & ORA.
• A total of 3 models are available for purchase in Thailand:
HAVAL H6 HEV, HAVAL JOLION HEV & ORA Good Cat.
Sources: Go Mechanic, Great Wall Motor, Automotive World
HAVAL H6 HEV
฿1.149mil. – ฿1.249mil.
Source: HAVAL Global, Auto Life Thailand
1st
in the C-class
SUV segment
RANKING
33.2%
in Thailand’s C-class SUV market
The model
ACCOUNTS FOR
SALES CHAMPIONSHIP
in the C-class SUV for two
consecutive months
Earned
GWM’s HAVAL H6 HEV gained strong market share in Thailand

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Volvo XC40
฿2,590,000
Rank: 2nd
59%
73%
81%
Advanced
technology
Good for
environment
Lower costs
Factors influencing EV purchase
among Thai EV owners
People who own EV(s) perceive the lower
operating costs as the top motivation for
buying EVs.
GWM’s ORA Good Cat was the best-selling BEV* in Thailand in 1H2022
Its lower price attracts Thai car owners who chose to purchase EVs for its lower operating cost.
• For the period of January-June 2022, ORA Good Cat accounts for
around 43.8% of the GWM total BEV* sales.
• GWM’s popularity could be due to its relatively low price and
attractive appearance. The following is the price comparison
between BEV*s with top sales for the period of January-June 2022.
ORA Good Cat
฿989,000 – ฿1,199,000
Rank: 1st Porsche Taycan
฿7,100,000 – ฿11,700,000
Rank: 4th
Sources: Auto Life Thailand, Electric Vehicle Association of Thailand
Source: Krungsri Research (2022)
Remarks: The survey has 818 respondents
*BEV: Battery Electric Vehicle

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Search trends of Great Wall Motor (GWM) on Google in Thailand
GWM and GM signed the agreement for
the purchase of GM Thailand Rayong
Manufacturing Facility.
Related queries
สมัคร งาน Great Wall Motor
(Apply job at Great Wall Motor)
Great Wall Motor ราคา
(Great Wall Motor price)
GWM’s smart factory in
Rayong created more than
3,000 job opportunities.

95
ALL RIGHTS RESERVED
Best selling products from Thailand on Tmall (Excluding tourism products)
VFOODS MIX
BISCUIT STICKS
DE LA LITA
WHOLE WHEAT CHIPS
KOH-KAE
FLAVOR COATED GREEN PEAS
Source: Tmall, 2022
Price: CNY19.90–39.90 (US$2.93–5.87)
Reviews: 10,000+
Popularity due to: Crispy, smells great,
good taste, great delivery service, various
flavor
Price: CNY83 (US$12.22)
Monthly sales: 600+
Reviews: 100+
Popularity due to: Very healthy, crunchy,
low-cal, great taste, contains coarse
fiber, high protein
Price: CNY17.90–75.80 (US$2.64–11.20)
Reviews: 2,000+
Popularity due to: Crispy, good
packaging, great taste, delicious wasabi
flavor, crispy

4.6 Vietnam

98
ALL RIGHTS RESERVED
Chinese netizens searched for political and business news in Vietnam
Illegal gatherings and protests
against China took place in
several provinces in Vietnam.
CATL (宁德时代) has reached strategic
cooperation with Vinfast to develop
electric vehicles.
Source: Baidu Index
Vietnam gains bargaining
power over China in the
regional maritime disputes.
Vietnam protested against a Chinese
military transport mission in the
disputed South China Sea.
A new rail freight service
between Shaanxi province and
Vietnam was launched.
Chinese netizens’ search frequency of “Vietnam/越南” on Baidu
Vietnamese netizens’ search frequency of “China” on Google

99
ALL RIGHTS RESERVED
Where in Vietnam are Chinese investing? (1/2)
Popular areas in Vietnam are located close to high-tech manufacturing region, major industrial centers or key economic zone.
HO CHI MINH CITY—The largest city in Vietnam: It is home to Tan Son Nhat
International Airport, the largest airport in Vietnam, Saigon Port, the busiest port,
as well as 11 industrial zones and a well-established high-tech park (Saigon Hi-
Tech Park), where many international brands have set up their companies. Ho Chi
Minh City is known as the best-performing city in Vietnam.
HANOI—The political center and capital of Vietnam: It has a strong, diversified
and efficient transportation system. Not only does it have the second largest
airport in Vietnam, Nei Pai International Airport, but it also has a network of
waterways, railroads and highways. In addition, Hanoi has a deep cultural heritage
and is a gathering place for Vietnam's history, culture, and arts.
DA NANG—A beautiful tourism city: The city has 70 kilometers of long stretches
of coastline and white sandy beaches. The whole city presents a vibrant and
tranquil coastal life. In addition, Da Nang is the main entry and exit point for goods
transportation and supply chain management.
Ho Chi Minh
City
Hanoi
Da
Nang
Dong Nai
Bac Ninh
Image source: Unsplash, Tron Le, 2020
A view of Ho Chi Minh City
Source: Juwai

100
ALL RIGHTS RESERVED
Where in Vietnam are Chinese investing? (2/2)
Although most popular areas are spread out, Dong Nai and Bac Ninh are located around Ho Chi Minh City and Hanoi.
DONG NAI—A center for foreign direct investment supporting industries and
high-tech manufacturing: Many foreign investors are developing electronic
component manufacturing, textile and garment production, and technology-
intensive industrial goods manufacturing in Dong Nai. In addition, the province
is about to become more accessible in 2025 with the arrival of a brand-new
airport in Vietnam, Long Thanh International Airport, which is considered by all
to be the largest airport in Vietnam in future.
BAC NINH—One of the major industrial centers in the key economic zone of
northern Vietnam: The province is attracting large amounts of foreign direct
investment, with major international companies including Canon from Japan,
Samsung from South Korea, Nokia from Finland, and Brom Bovary from
Sweden, all having established companies in Bac Ninh. Bac Ninh province is
expected to attract more people to live there, especially expatriates and local
talents.
Image source: Unsplash, Minh Luu, 2017
Image source: Unsplash, Mr.Autthaporn Pradidpong, 2019
A view of Golden Bridge, near Da Nang
An aerial view of Hanoi
Source: Juwai

101
ALL RIGHTS RESERVED
The upgrade of connection networks boosted the sales of smartphones
Chinese mobile phone brands are taking 54% of Vietnam’s smartphone market share in the fourth quarter of 2021.
Vietnam’s smartphone shipments have increased due to the
transition from 2G to 4G/5G smartphones. This has boosted
smartphone adoption, with Vietnam recording the highest growth
in the smartphone market amongst ASEAN countries in 2022.
Vietnam’s total smartphone subscribers are increasing, according
to the Ministry of Information and Communication.
91.3
MILLION
by the end of 2021
93.5
MILLION
by March 2022
14.20
15.90
2020 2021
Vietnam’s Smartphone
Shipments
(in million units)
12%
YoY Growth
Approx.
Durability, quality, brand, and price as the main attributes that
drive the purchase behavior of Vietnamese consumers for
mobile phones and digital gadgets.
Big Chinese brands such as OPPO, Vivo, Xiaomi, and Realme
have been in the top ranks for several years in Vietnam’s market
and take a significant market share.
54%
OPPO, Vivo, Xiaomi &
Realme account for
market share
in Q4 of 2021
Sources: Vietnam Investment Review, Counterpoint Technology Market Research
Source:International Data Corporations, OpenGov Asia
Main attributes driving the purchase of mobile phones and
digital gadgets in Vietnam
(2020, n=1,000)
Durability Quality Brand Price
13% 13% 12% 12%

102
ALL RIGHTS RESERVED
Case study: OPPO
OPPO’s market share ranked second for the period 2020-2021. High camera quality and successful marketing campaigns
contributed to OPPO’s success in Vietnam.
Sources: OPPO, Marketing AI, China Daily, International Data Corporations
A consumer electronics and mobile
communications company headquartered in
Dongguan, Guangdong, OPPO, first launched.
2004
OPPO entered the
mobile phone
market.
2008 2013
OPPO entered the Vietnamese market its
revenue reached 30bn. ₫ (US$1.3 million)
within one month after launching, which
exceeded expectations.
2021
OPPO takes second place in
terms of market share in
Vietnam.
OPPO A95
29.3%
33.3%
19.1% 17.5%
10.1% 12.7%
2020 2021
Smartphone market share in Vietnam
Samsung OPPO Vivo Xiaomi
Source: International Data Corporations (2022)
OPPO’s camera quality is also a reason for the brand’s success.
79% smartphone users in Vietnam use their phones
to take pictures more than once per week.
SELFIE
MOST POPULAR FUNCTION:
23
PICTURES
per week
on average
Samsung led the
ranks through its
low-end portfolio.
Source: Q&Me

103
ALL RIGHTS RESERVED
OPPO’s strategic influencer marketing aided its market expansion
OPPO assigned relevant celebrity ambassadors to different products which are intended for the targeted customer segments. A
deep understanding of targeted customers helped the brand to localize its marketing campaigns.
Celebrity Model Customer Segment Average Price
Sơn Tùng M-TP OPPO F1s The most important mainstream segment of OPPO, targeting the general public. ±6 million ₫ (US$254)
Hồ Ngọc Hà OPPO F1s Plus The model is in the high-end portfolio, aimed at the higher class. ±10 million ₫ (US$424)
Chi Pu OPPO A39 Intended for teenagers who only have a limited budget. ±4 million ₫ (US$170)
Source: Marketing AI (2018)
• Sơn Tùng M-TP emerged as a pop sensation in 2013
and OPPO promptly collaborated with the pop singer.
• His ads with OPPO F1s were viral, and the model
became the top of smartphone sales in 2016,
surpassing Samsung.
• His collaboration with OPPO was so successful that
people often associate his name with OPPO.
• Hồ Ngọc Hà is a singer, actress and
entertainer.
• Hồ Ngọc Hà also earned the nickname of
“Vietnamese advertising queen”.
• With an image of beauty and classy
charisma, Hồ Ngọc Hà is OPPO’s choice
when promoting its high-end product line.
• Chi Pu is a Vietnamese actress and
pop singer who became popular with
her roles in TV dramas and sitcoms.
• She has worked with big names such
as Google Vietnam in 2016.
• Chi Pu is also considered a role
model for teenagers.
Source: Marketing AI Source: Marketing AI Sources: Thanh Niên & Marketing AI

104
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Search trends of OPPO on Google in Vietnam
Related queries
OPPO Reno OPPO A3s
The OPPO A3s is a lower-
mid-range phone with a dual-
camera and great battery life.
The OPPO Reno phone
series focused on the
quality of photography and
mobile entertainment.
Vietnam’s largest private conglomerate
Vingroup unveiled its first made-in-Vietnam
mobile phones, focusing on the mid-range and
low-end segments which compete with OPPO.

105
ALL RIGHTS RESERVED
Best selling products from Vietnam on Tmall (Excluding tourism)
HOANG LONG
GREEN BEAN CAKE
REEVA
STEWED BEEF WITH HERBS CUP NOODLES
TUFOCO
VIETNAMESE RICE NOODLE
Source: Tmall, 2022
Reviews: 40,000+
Popularity due to: Cheap, sweet taste,
beautiful packaging, soft texture
Reviews: 10,000+
Popularity due to: Satisfying size,
strong beef flavor, great Taste, very
chewy noodles, high-cost performance
Price: CNY13.90–23.90 (US$2.05–3.52)
Reviews: 3,000+
Popularity due to: Trustworthy quality,
tastes a little sweet, chewy noodles, long
shelf life

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