According to a recent study undertaken by the World Bank, these are the regions to watch in Asia for investment and economic success. They are: Laos, The Philippines, Cambodia, Myanmar and China.
The Laos economy — that has historically been regarded as the poor relation of fiscal success — is set to surge by 7% this year due to investments in the power sector alongside a more solid amalgamation with the 10-member Association of Southeast Asian Nations.
The Philippines – will probably remain the fastest growing economy from the Association of Southeast Asian Nations 6 (ASEAN-6). This is due to increased domestic demand alongside an escalation in infrastructure expenditure, the growth in the middle class and the upsurge in the Business Process Outsource (BPO) industry.
Moving over to Cambodia, it seems that the microfinance industry is what is currently propelling growth. Over the last 20 years or so, thanks to this sector, the economy has encountered significant growth, simultaneously mitigating poverty in the region. These two factors – growth and poverty elimination – are two high priorities for the government.
Most notably, the private PRASAC Microfinance Institution has played a huge role in this. Over this same time frame of Cambodian growth, PRASAC has become the country’s “largest and most sustainable MFI in Cambodia in terms of business size, customer care, flexible and sound financial solutions, and a wide network of offices and ATMs [having] developed a modern, transparent and dynamic core banking system.” As such it has received various awards for its part in putting the country’s economy on the Asian investment map.
Myanmar’s new oil pipeline has had a huge impact on its economic attractiveness. When activated, this will measure around 770 kilometers from western port city Kyaukpyu to the Chinese border. It has been hailed as “the crown jewel of economic cooperation agreements,” that was signed in Beijing.
And then of course let’s not forget China, which has always been known as the hero of growth and investment. Most recent figures from March showed an increase in trade surplus and exports (16.4%) a reversal of the 1.3% decline from February. Further, predictions for Q1 of growth in the region from economists is 6.8% from last year so that’s indicative of strength in economy too.
So for companies and high net-worth individuals looking to Asian locations to invest, watch these regions.
