Business in ASEAN is one of the regions that is highly affected by covid-19 pandemic. Although several countries begin to recover in early 2021, there are still many uncertainties related to the economic outlook. This can be a problem for those who plan to expand business in Southeast Asia regions.
The growth of economic outlook relies on numerous factors including restriction and lockdown regulations on each country, economic structures, and government support on households during covid-19 outbreak. They become important factors to consider before you enter a specific country in ASEAN.
Some Developments of Business in ASEAN during COVID-19 Crisis
To discover the potential in ASEAN market, clients need to know what sectors that currently recover and develop. Getting the market data related to this sector will be much easier if market research is conducted. Here are some sectors in ASEAN regions which already show better development during the pandemic.
- The Evolving Digital Market in ASEAN
The covid-19 outbreak affects developing countries in Southeast Asia regions severely. Some countries start to emerge in the first quarter of 2021 while some others still suffering not only in health but also in economic sectors.
With the lockdown regulations, almost many works and activities that require people to leave home now are conducted inside. Online platforms are currently widely used to exchange normal activities. People’s need for digital devices that can support their activities through lockdown actually affect the ASEAN market.
The digital market in ASEAN begin to recover and the average GDP growth of countries in these regions is supposed to reach 5.1 percent in 2021. This percentage rises from the last year which only hit 3.4 percent.
- Various Recoveries in ASEAN regions
Vietnam revealed the strongest agility among other countries in ASEAN back in 2020 as its national GDP reached 2.6 during the worldwide financial crisis. It is expected that Vietnam also leads the position in 2021 with its great market volatility.
The recovery of most countries in ASEAN is supported by the tourism sector and export trades. That’s why clients need to consider those sectors in the market research in order to create an effective market entry strategy ASEAN. Those will be truly helpful during this challenging time.
While Vietnam leads the GDP growth, Singapore places the first positing in reaching the herd community. More than half of Singapore’s population has been vaccinated for the first dose. As it’s targeted to finish in August 2021, Singapore will return to its normal state.
- The Impacts of Digitalization on the ASEAN Economy
The digitalization that occurs in ASEAN countries brings advantages to the entire economy. Government in ASEAN countries benefit from digitalization by launching telemedicine services as well as use digital health services during this pandemic optimally.
With the restrictions and lockdowns, many countries in this region taking significant steps to accelerate digitalization as the solution for the urgent demands for public services including healthcare.
Consequently, transaction on e-commerce and e-payment shows a double-digit development this year.
Expanding business in ASEAN during the covid-19 pandemic is challenging. That’s why conducting market research to know the real condition will be beneficial to create required strategies for market entry.