On 10th October, 2024, Source of Asia (SoA), in collaboration with Banques Populaires, Globallians, and Muser company, hosted an engaging webinar focused on strategies for French companies looking to expand into the dynamic markets of ASEAN and South Korea. Moderated by Thierry Mermet and Xavier Pouliquen from SoA as well as Christophe Muser from Muser company, the session offered a wealth of practical advice on regional development.
ASEAN and South Korea Are Prime Destinations for French Companies
Why is ASEAN an Attractive Destination?
ASEAN has become an attractive destination for global investors and businesses, including French companies, due to its booming economy, youthful workforce, and strategic location. The region comprises 10 countries with diverse markets, boasting a combined GDP of $3.2 trillion and an expected growth rate of over 5% annually. Here are a few reasons why ASEAN stands out:
- Growing Middle Class: ASEAN’s expanding middle class is driving demand for goods and services, making it a consumer market that cannot be ignored.
- Geopolitical Stability: ASEAN’s relative political stability compared to other regions makes it a secure investment hub.
- Free Trade Agreements (FTAs): ASEAN’s extensive network of FTAs, especially the Regional Comprehensive Economic Partnership (RCEP), facilitates trade among member countries and beyond.
The “China+1” Strategy
As companies look to diversify their supply chains, the “China+1” strategy has gained momentum. French businesses, particularly in manufacturing, are seeking alternative locations to reduce reliance on China while maintaining cost advantages. ASEAN, with its competitive labor market, proximity to major Asian economies, and improving infrastructure, is becoming the go-to region for this strategy. Vietnam, Thailand, and Indonesia are leading the way in attracting foreign investments, especially in the semiconductor and electronics sectors.
Key Industries in ASEAN
Several industries are flourishing in ASEAN, making it a hotbed for investment:
- Manufacturing: ASEAN has solidified its position as a manufacturing hub, with Vietnam and Thailand leading in electronics, textiles, and automobile production.
- Semiconductors: The region is also becoming a key player in the semiconductor industry, a sector of increasing importance globally.
- Food & Beverage: Growing populations and rising incomes are driving demand for packaged food and beverages, attracting multinational corporations to set up operations in the region.
Learn more about ASEAN? Click here.
South Korea: A Strategic Market for French Companies
South Korea, a highly developed economy, presents opportunities in technology, innovation, and advanced manufacturing. French companies looking to expand into South Korea can benefit from its position as a global leader in industries like semiconductors, automotive, and consumer electronics.
According to Christophe Muser, CEO of Muser company, the key to succeeding in South Korea is understanding the local business culture, building strong relationships, and aligning with Korea’s focus on innovation and technology. South Korea’s commitment to sustainability and renewable energy also offers new opportunities, particularly for French companies in these sectors.
Key Insights from Our Webinar: Expanding Your Business in ASEAN and South Korea
Success Stories: AKROCEAN and D’Aucy
The session also featured case studies of French companies successfully expanding in ASEAN:
- Akrocean: A leader in renewable energy, successfully navigating Vietnam’s regulatory framework to establish offshore wind projects.
- D’Aucy: Expanded its food business by building a strong supply chain in ASEAN, meeting the region’s rising demand for high-quality food products.
Beyond Market Expansion – Additional Support Services
While market expansion was the core topic of the webinar, Xavier Pouliquen from Source of Asia also emphasized the importance of additional services that help French companies establish a solid foundation in ASEAN and South Korea. These include:
- Sourcing & Supply Chain: Identifying and securing reliable suppliers in the region.
- Corporate Services & HR Solutions: Setting up local operations, hiring talent, and navigating local labor laws.
- Mergers & Acquisitions (M&A): Providing strategic guidance for companies looking to enter the market through acquisitions or partnerships.
At SoA, we understand that each business has unique requirements, so we are committed to customizing our services to meet your specific needs. With our support, you can confidently embark on your journey in these dynamic markets.
Prospects for ASEAN and South Korea
Looking ahead, ASEAN and South Korea will continue to offer numerous opportunities for French businesses. Economic forecasts for ASEAN point to sustained growth, driven by digital transformation, urbanization, and infrastructure development. Meanwhile, South Korea’s focus on green technology and innovation makes it a forward-looking market for companies ready to invest in sustainability and cutting-edge solutions.
For more insights and to watch the webinar recap, click here!
Further Insights by Our Newest Publication “Doing Business in ASEAN 2024 – 2025″
For French companies looking to expand into ASEAN and South Korea, understanding the economic landscape, cultural nuances, and key industries is crucial for success. With the right strategy, support services, and a focus on emerging sectors, businesses can position themselves for growth in these dynamic markets.
At Source of Asia, we are dedicated to helping companies navigate these complex environments and thrive. Download our latest publication on “Doing Business in ASEAN 2024-2025” to learn more about the economic outlook and opportunities in the region.