IndoChina poised to benefit from spillover effects from China's growth
By Jonathan Peeris, 938LIVE | Posted: 11 November 2009 2114 hrs

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SINGAPORE: IndoChina is poised to benefit from spillover effects from Asia's main economic growth engine - China.

Industry players said the region remains a lucrative and attractive location for businesses thinking of expanding into emerging markets.

Tran Si Chuong, partner, Tran-Invest, said: "With the rate of growth in the past years, the Vietnamese now have more money. They expect to spend more and they demand more.

"They want better roads because they have more cars. They demand better healthcare and education for their kids and so on. So those present tremendous opportunities for foreign investors."

Speaking at the Global Entrepolis Summit held on the sidelines of the APEC meeting, industry players said IndoChina is starting to shine and this is not lost on companies.

The IndoChina region, which includes Vietnam, Cambodia and Laos, grew at six per cent even at the peak of the crisis.

Logistics firm YCH Group is among investors making inroads in Vietnam.

The company said rising costs in China have caused many companies to establish a secondary manufacturing base in other nearby economies - the so called China plus one strategy.

And this migration of manufacturing bases and supply chain will provide lots of potential for the logistics sector. - 938LIVE/vm