Southeast Asia is a potential market, particularly in the technology field. It brings back many opportunities and challenging for businesses willing to enter. This article recommends a solution for this problem.
Southeast Asia – Hustle and bustle market
One of the world’s regions with the greatest growth rates is Southeast Asia, or the ASEAN (the Association of Southeast Asian Nations) region as it is more frequently known in Asia. The Asian Development Bank (ADB) projects that Southeast Asia’s economy will rise by 5.5 percent in 2022.
The average GDP growth rate for Emerging Asian countries is expected to increase to 5.3% in 2023 and 5.4% in 2024. The International Monetary Fund (IMF) forecast for global growth was 3.2 percent for 2022 and 2.7 percent for 2023, meaning ASEAN is still forecast to grow substantially faster than the global average.
These data show the great potential of the others business willing to enter this vibrant market.
High in tech, high in need
Southeast Asia is going through a rapid and unprecedented digital revolution, which is being fueled by growing consumer classes, a robust start-up industry, affordable and readily available devices, and young, tech-loving populations who have embraced social media and e-commerce. Southeast Asia is changing due to the digital age.
The region’s digital economy, which has attracted investment of more than $50 billion, is anticipated to be worth more than $200 billion USD by 2025. In comparison to the anticipated 14% rise over the next five years, only India has seen a considerable surge in e-commerce.
Even while many Australian investors have lagged behind, Southeast Asia’s digital transformation is already drawing significant attention and competition from around the world.
It might be challenging to determine which trends and breakthroughs will guide future decision-making and which industries will have the most potential, though, given how swiftly the digital landscape is evolving.
Great potential…
According to Tech in Asia (YC W15), the largest English-language technology media company that focuses on Asia, In 2022, climate startups raised $1 billion in funding, 80% more than in 2021
Green tech has immense relevance to Southeast Asia, a region that is vulnerable to the impacts of climate change. The tourism and travel technology industries are likewise well-positioned to propel major expansion in the area. These industries have mostly continued to use manual procedures up until recently, allowing lots of space for digitalization to advance significantly.
Funding in the sector remains strong throughout the region. Fintech companies in ASEAN raised $4.3 billion in the first nine months of 2022, with Singapore and Indonesia leading fundraising activity.
Additionally, Southeast Asia is now a major player in the world of outsourcing. The market for IT outsourcing in the area is anticipated to reach $13.1 billion by 2027
…But also great challenging
Southeast Asia still struggles to forge a seamless political-economic union, despite the benefits of a burgeoning population and a strong economy. Across ASEAN’s 10 countries, for example, there are no open borders or a common currency like in the European Union. The transfer of money is made more difficult by the fact that each nation has its own financial laws. Singapore is at one extreme of the spectrum with its lax rules. Vietnam, on the other hand, is heavily regulated. Indonesia, Malaysia, the Philippines, and Thailand are in the middle and have a medium level of regulation.
Moreover, local businesses are acquiring more cash and better access to advisory services as Southeast Asia’s economies continue to expand, giving them the ability to compete with multinational companies more successfully.
There is a key to solving a problem…
For any business willing to enter the Southeast Asia market, outsourcing is a recommendation. It helps firms save costs, have a wide knowledge of this market, and hired a talent pool.
India and China are leading the outsourcing bandwagon, followed by Indonesia, Malaysia, Belarus, the Philippines, and Vietnam due to their cheap labor and operating costs. Especially in Vietnam, IT Outsourcing in Vietnam has emerged with $11.0B in revenue (according to a report by the Vietnam Software and IT Services Association). Vietnam also ranked 9th in Tholon’s Top 50 Digital Nations. The total ICT export is reported to be $91.5B, bringing $3.5B of software export turnover. This number is predicted to grow more in 2022.
According to Tech in Asia, for example, Golden Owl is a recommendation if firms have the decision of seeking an IT consulting outsourcing company. Golden Owl is also a partner of VNtradeUK, with more than 8 years of experience and a team of expert developers and consultants who are committed to delivering the highest quality products and services to help clients achieve their business goals.
