China Daily Hong Kong Edition: Happy hunting ground for Chinese firms as bloc rises

Chinese enterprises will find great investment opportunities in ASEAN countries, especially in the infrastructure, agriculture and trading industries, Xu Ningning, executive president of the China-ASEAN Business Council, told China Daily.
Members of the Association of Southeast Asian Nations (ASEAN) have launched numerous infrastructure projects during the last few years, and many Chinese enterprises have been entrusted with these projects due to the advantages they bring of relatively low raw material price as well as design and labor costs, said Xu.
In Singapore, Myanmar, Cambodia and Malaysia, Chinese companies have taken a significant market share of the local infrastructure industry, and many new projects are expected to be launched in the future, offering fresh opportunities for Chinese firms, he added.
Xu pointed out that State-owned enterprises are generally engaged in large projects like dam-building while private companies prefer smaller projects like mining.
Meanwhile, as economic growth in China has also boosted demand for commodities and resources from ASEAN countries — including lignum, mineral resources and consumer goods like fruits and seafood — Chinese enterprises will find good opportunities in the planting and processing industries as well, said Xu.
“From what I know, many Chinese companies, mostly private firms engaged in rubber planting, cassava planting, as well as palm oil processing industries in ASEAN countries are doing very well.”
Xu also noted that there are many opportunities for cooperation in the manufacturing industry in the ASEAN region.
Industrial upgrading is now an important part of economic growth of ASEAN countries, he said, adding that at the same time, many Chinese manufacturers, especially textile and garment makers, are trying to “go out”.
ASEAN countries will become an ideal place for Chinese manufactures, thanks to the ASEAN - China Free Trade Area; besides, as many developed countries have launched antidumping and countervailing duty measures and set market barriers against Chinese industrial products, exploring ASEAN markets would enable Chinese companies to expand overseas sales.
There are also good opportunities of selling building materials in ASEAN countries, said Xu.
Due to the number of infrastructure projects launched, demand for building materials, including lighting equipment, wall materials, ceramic tiles, furniture, and even home appliances, is quite strong, he explained.
The “made in China” building materials offer good quality at relatively low prices, which gives Chinese companies a competitive edge, he emphasized.
As for the challenges facing Chinese companies keen to invest in ASEAN countries, Xu said the China-ASEAN Business Council suggests that Chinese companies should devise long-term plans about the country they want to invest in, rather than just focus on seeking short-term benefits.
Chinese companies should also pay close attention to both product and project quality when they do businesses in ASEAN countries. They should also attach importance to building good relationships with the local government, local people, as well as local press, he advised.
Xu also suggested that Chinese companies hire locals into their management team, which could help them understand the local culture and better resolve local issues.
sophiehe@chinadailyhk.com
http://www.chinadailyasia.com/2015-01/23/content_15218076.html