It’s become increasingly common to wake up to concerning developments in the China-U.S. Trade War. Global stocks have already started to sink as Beijing has said it will refuse to back down against what it calls aggression by the United States—and, somehow, 2019 is only half over.
The trade war demands the question: where do businesses in the process of global expansion turn their attention now that China is essentially off the table for many in the foreseeable future? Fortunately, not all news in the China-U.S. Trade War is bleak; there are still several alternative global expansion opportunities in Asia that are available to take advantage of in 2019 and beyond.
The Benefits of a Vietnam Expansion
Vietnam has in recent years emerged as an increasingly popular global expansion destination for businesses in a variety of industries, with IT outsourcing being among the most common practices. Additionally, one of the major reasons why Vietnam is such an attractive alternative to China is because Vietnam saw a huge increase in private equity investment in the last year alone. There was also a massive increase in exports during the first few months of 2019, largely as a result of the China-U.S. Trade War. All told, a lot of Chinese manufacturing is being moved to Vietnam (in addition to the United States) offering many opportunities for businesses aiming to expand into Asia.
Singapore: One of the Most Promising Markets for Global Expansion
One of the main reasons that Singapore is such a viable alternative opportunity to China is because it represents a great entry point into Asia. Not only is it largely an English-speaking country, but it is also one with a famously friendly business environment, and is among the top five most promising markets for tech firms looking to expand operations. Once companies establish a foothold in Singapore, it becomes much easier to pursue additional opportunities across Southeast Asia.
Singapore also brings with it the benefit of a common law legal and finance system, meaning that, with the right partner like an International PEO, businesses face a cost-effective process for getting off the ground quicker than they may experience elsewhere, as Singapore is less influenced by China than other areas, like Hong Kong.
Taking on Thailand
Last but not least, Thailand: an opportunity that many expanding companies tend to overlook. Thailand has for many years been a hub of international business activity; many Chinese and even Japanese automobile manufacturers are heavily investing in Thailand, for example.
It has also recently enacted a number of new policies designed to promote technology investment, something that officials and experts alike are referring to as “Thailand 4.0.” And 2019 is officially “Investment Year,” a concerted effort by the Thai PM, the Board of Investment, and the economic ministries to support investment and enhance competitiveness throughout Asia, making Thailand a particularly advantageous alternative to China during the U.S.-China Trade War.
Expand with an Agile Alternative to Entity Establishment: International PEO
Regardless of where you decide to expand in Asia, taking the leap with the right partner cannot be overstated. Velocity Global has partnered with hundreds of organizations around the world to help them realize their global expansion goals in more than 185 countries, with many making Singapore, Thailand, and other Asian markets the next stops on their global expansion. Through our International Professional Employer Organization (PEO) solution, we enable companies to hire virtually anywhere through locally-compliant employment contracts, mitigating the risk of working with independent contractors.
Want to learn about your alternatives to China or how we can help you establish your global presence in as few as 48 hours? Let’s chat.