The Future Value of ASEAN Nations for Entrepreneurs The ASEAN region faces many challenges ahead as it continues to grow its supply chain industry.

By Eric Chin

Opinions expressed by Entrepreneur contributors are their own.

As a whole, the combined ASEAN countries are set to be the world's fourth-largest economy by 2030. But that assumes a few things — of note, the group's manufacturing capabilities. To meet that lofty goal, the ASEAN manufacturing sector must not only grow far beyond its current 5% contribution to the global sector, but it must also grow in a smart and prescient manner that looks to the future like no other region on the world stage.

So how can the region do it? Well, the answers are simple, but the work will not be easy.

Related: 4 Things to Consider When Choosing the Best Asian Country for Business Expansion

Take advantage of the growing and dynamic domestic market

In most ASEAN nations, there's a burgeoning middle class that is both hungry for new goods and increasingly sophisticated in its tastes. 396 million of the region's people will rise into the middle class by 2030.

The region may look to create the goods that these hundreds of millions of people will demand — packaged foods, automobiles, consumer electronics and any number of other trending goods on the horizon. This alone won't be enough to propel the region into the upper echelons of global manufacturing, but it will provide a much-needed foundation.

Its ability to create supply chain resiliency

The last few years have seen continued economic brinkmanship between the US and China, with many leading companies beginning to question their reliance on China's manufacturing faculties.

While the region may not be the comprehensive alternative to China, many MNCs are adopting this policy under the guise of "China Plus One", where they keep their main manufacturing operations in China and branch out to other nations to supplement their output.

Technological trends improving automation in manufacturing

The problem in Southeast Asia at this point isn't manufacturing capacity, it's technological sophistication. The region has low-wage labor and a growing global middle class for technological consumption — and the two just don't match up. What it needs are high-tech skillsets and facilities to match this growing demand.

This is where technology comes in. Robotics, 3D printing, augmented reality and other technological advances are making it easier than ever for factories to be run with a fraction of the current human workforce — all while producing products that human hands could not.

If the region embraces these technologies and uses them to improve our factories, it will be possible for the region to compete with the likes of China on a technological level.

Related: What it Takes to Create a Leading Fintech Hub

Use the power of public-private partnerships

Last year, the Economic Development Board (EDB) of Singapore, Enterprise Singapore (ESG) and private sector partners came together to create the Southeast Asia Manufacturing Alliance (SMA). It will allow global manufacturers to access a network of business parks in Singapore to help them expand with relative ease.

By utilizing the capabilities and networks of these business parks, international manufacturers can integrate themselves into Singapore's manufacturing sector, effectively and quickly diversifying their manufacturing capabilities.

The outlook for ASEAN is positive, but it wholly relies on a united and extremely proactive front. The region has a chance to capitalize on everything that it has been built over the past few decades, and entrepreneurs can't afford to let it go to waste.

Related: 7 Reasons Why Hong Kong Is Still Asia's No. 1 Spot for International Business

Wavy Line
Eric Chin

Entrepreneur Leadership Network Contributor

Chief Business Development Officer of InCorp Global

Eric Chin is the CBDO at InCorp Global. Chin consults business entities on the ideal market-entry strategies for setting up or expanding business operations in South Asia. He advises fund managers and family offices when they consider markets like Singapore.

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Legal

How You Structure Your Business to the IRS Can Affect More Than Your Tax Bill. Here's What You Need to Know.

From startup to going public, the business formation structure you choose affects your company in many ways, including how you file your taxes and how much you owe the IRS.

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Marketing

8 Ways to Do Big-Time Marketing Without Spending a Fortune

When it comes to building your brand, how you spend your money is at least as important as how much money you spend.

Growing a Business

Subscribers Exclusive Event: Discover How These 2 Founders Turned Their Side Hustle into a Million-Dollar Lifestyle Brand

Learn how you can transform your personal brand into a thriving business empire with co-founders of The Skinny Confidential