Opening a deep analysis article just published, Forbes sets forth a question: Nowadays, everyone is seeking growth opportunities as the Chinese economy slows down. The question is, where will high-growth companies choose to list as major economies, including the US, are still striving to regain their footing? The answer indicates that Southeast Asia is the next destination for emerging Asian companies.
Southeast Asia, especially Singapore, Vietnam, and Indonesia, is ready to become economic powerhouses in the next decade. A young population and a business-friendly environment are creating a fertile ground for innovative companies ready to go global. NASDAQ might be a feasible option for many Emerging Growth Companies (EGCs) in their international development journey.
According to Forbes, Singapore is becoming a financial hub of the region as businesses seek alternative options outside of Hong Kong (China). Singapore’s strengths lie in the developing technology sector and a favorable investment environment. Large businesses in Singapore also have extensive experience in international relations, along with a modern legal system and strict accounting practices.
Within Southeast Asia, Forbes particularly mentions Vietnam. The dynamism of Vietnam’s business community, according to Forbes, resembles the model of Silicon Valley in previous years. The listing of VinFast, an automobile manufacturer with a main production base in Hai Phong, Vietnam, on the US stock exchange, is a typical example. While VinFast’s parent company – Vingroup is a well-known name in the region, this global expansion has brought Vietnam’s advanced electric vehicle manufacturing capabilities to customers worldwide in record time.
VinFast has established its headquarters in the US in Los Angeles within just a few years. The company is building a large factory in North Carolina, expected to produce 150,000 cars per year, and has opened stores in France, Germany, and the Netherlands.
In addition to VinFast, Forbes also mentions VNG – a Vietnamese technology company that plans to raise capital in the US in the near future.
Forbes analyzes that Vietnam’s outstanding growth has attracted significant attention from the political sphere. President Joseph Biden recently visited Hanoi to strengthen cooperation. While attending the Vietnam – US Business Dialogue, the Innovation & Investment Summit with leaders from US companies such as Intel, Google, Boeing, and GlobalFoundries, as well as Vietnamese companies, President Joe Biden praised Vietnamese businesses, especially the significance of VinFast in the US. “Last year, a Vietnamese company signed a $4 billion agreement to build an electric car and battery production plant in North Carolina. The plant has created 7,000 jobs for labor in the area,” President Joe Biden said about VinFast.
To conclude the visit, the Biden administration signed a comprehensive strategic partnership with Vietnam, including agreements on research, technological breakthroughs, semiconductor supply chains, and workforce development.
Besides Vietnam, Forbes also mentions Indonesia – another growing center in the region. The advantage in this country is its population scale of over 270 million people, an increasingly tech-savvy population, and the government’s commitment to modernize the economy. Indonesia’s GDP growth is expected to reach nearly 5% in 2023, while advanced economies in Europe and the US are struggling with inflation and slow growth.
Technology unicorns have been listed on Indonesian stock exchanges. In 2022, e-commerce giant GoTo raised $1.1 billion. PT Bukalapak.com raised $1.5 billion in 2021. Indonesia’s e-commerce market is valued at $40 billion.
As predicted, Southeast Asia is becoming another global economic powerhouse as supply chains, technology development, and fundraising of diversified businesses shift to new markets. As emerging companies seek to sustain growth, the US stock market is considered an attractive choice to optimize valuation and deeply penetrate a market with strong liquidity. This can be achieved by listing directly or through SPACs, helping companies have a faster path to IPO in the US.
According to Forbes.
