US companies to diversify investment from China to ASEAN markets

The poll by the American Chamber of Commerce in Singapore and the US Chamber of Commerce reveals that US companies have a positive outlook about investment opportunities in ASEAN, with 70 per cent planning to expand business in the region.

The 2012/13 ASEAN Business Outlook Survey, based on responses from 356 senior executives, shows Vietnam as the most popular market for expansion, followed by Thailand.

Indonesia, widely tipped as a huge growth market, came in as the fifth, trailing Singapore and the Philippines.

Overall, 21 per cent of US companies plan to diversify some investments or business from China into ASEAN over the next two years, significantly higher than when asked in 2011 (15 per cent).

Tamin Overby, vice president Asia of US Chamber of Commerce said ASEAN is a “bright spot” in the global economy and vital to US trade and investment.

“As the region continues to integrate, US companies need to develop regional strategies to realise ASEAN’s potential,” she said.

David Mayo, president, 
Ogilvy & Mather ASEAN, said interest in ASEAN is not just limited to the US, with companies from Japan, China and Korea also actively looking at the “fertile markets”.

But he added that interest in ASEAN has not been accompanied by a dip in interest in China.

“What's interesting is—at the same time—local companies in these markets are themselves starting to look beyond their own borders as they invest in one another's markets, which is also generating a climate of growth and activity,” Mayo said.

Barry Cupples, CEO, APAC, Omnicom Media Group, said given the substantial potential of ASEAN markets it is right that companies are looking for investment opportunities there.

“Myanmar has added itself to that list and the status of restrictions and the easing of them will mean further opportunities for advertisers,” he said. “We are very excited by the continued growth and development that Myanmar represents within ASEAN markets.”