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Although great uncertainty remains, ASEAN as a region has shown resilience in the face of the current exceptional situation. GDP growth has proven relatively stable during the pandemic. The Asian economy fell by 1.5% in 2020, while the global economy fell by as much as 3.2%. Asia is expected to recover much faster, with the International Monetary Fund (IMF) in July 2021 forecasting Asia to grow by 7.5 per cent in 2021 and 6.4 per cent in 2022, compared to 6.0 per cent and 4.9 per cent for the global economy.
Since its establishment in 1967, ASEAN (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) has opened its markets to both ASEAN member countries and countries and regions outside ASEAN to stimulate inter-regional economic activity through foreign direct investment (FDI) by multinational companies.
Thanks to the policy of openness, ASEAN has successfully achieved rapid economic development and has become a growth centre in the global economy, occupying a central position in production networks.
The global packaged machinery market was worth $40.08 billion in 2019 and is expected to reach $52.83 billion by 2027, growing at a CAGR of 3.6%.
The largest growth markets for packaged food are in Asia, Middle East/Africa and Latin America. These three regions together account for
55 % of the total trade volume.
Companies producing packaging machinery and materials are growing exponentially, triggered by these advancing developments. These are becoming more dominant in the world market and more interesting for Western companies.
Foreign direct investment (FDI) inflows to ASEAN reached an all-time high of $182 billion in 2019, making ASEAN the largest recipient of FDI in the developing world.
Due to the unprecedented impact of the COVID-19 pandemic, FDI declined to $137 billion in 2020, which is quite significant, but compared to the decline in global FDI, ASEAN still fared slightly better. Their share of global FDI increased from 11.9% in 2019 to 13.7% in 2020.
In recent years, ASEAN countries not only made full use of their low-cost advantages and actively undertook international industrial transfers, but also completed a series of innovative measures.
These measures led to the improvement of the competitiveness of advanced manufacturing industries, thus demonstrating their ambition to accelerate the industrialisation process.
As the figure shows, FDI in the manufacturing sector was huge before the pandemic, ranking third after finance and insurance. This investment has declined over the last 2 years, but it is expected that with the rapid restoration of the normal economy in the ASEAN region, investment, especially in the manufacturing sector, will reach a new high (e.g. in the packaging industry).
ASEAN countries and their current dialogue partners have largely completed negotiations and signed the Regional Comprehensive Economic Partnership (RCEP) agreement in November 2020.
This is the world's largest trade agreement, accounting for about 15 per cent of global FDI stock and more than 33 per cent of global FDI flows in 2020, and is expected to enable ASEAN and its partners to further boost investment and promote the development of the global value chain in the region.
In addition, the FTA negotiations with the EU are of great economic importance for Europe, as the ASEAN region has dynamic growth and offers significant potential for economic cooperation. The EU is initially negotiating bilaterally with individual ASEAN countries, as a regional approach to negotiations has not led to concrete results in the past.
Successes so far:
Vietnam: the EU and Vietnam signed a free trade agreement and an investment protection agreement in Hanoi on 30 June 2019.
Singapore: the EU and Singapore signed a Free Trade Agreement and an Investment Protection Agreement at the ASEM Summit on 18-19 October 2018.
The rest of the ASEAN countries are still in negotiations.
According to studies, Southeast Asia's packaging machinery market is expected to develop tremendously in the period from 2020 to 2026 and figuratively, due to the above reasons, generate value for Europe to the global market.
Key players in the global packaging machinery market have evolved key strategies such as product launches and business expansion to strengthen their market presence and counter the fierce competition in the market.
For decades, the export industry has played a crucial role in the remarkable socio-economic development of Southeast Asia.
But while several other Asian manufacturing economies have developed into world-leading industries and innovations, most of Southeast Asia is still seen primarily as a location for low-cost but high-quality manufacturing.
However, ASEAN member states already have a number of well-established manufacturing clusters and the potential to generate importance and influence as investment increases. This is particularly focused on the packaging machinery sector.
Southeast Asia could be in a position to make great strides in economic development and expand opportunities for integration.
The emerging economies of Southeast Asia are a destination for companies looking for such locational advantages.
Europe has and will continue to recognise the importance that ASEAN countries bring to the packaging industry.
Tremendous growth, fuelled by a wide variety of location and economic factors, has made ASEAN one of the most attractive places in the global packaging world.
Companies in Europe can draw enormous benefits from the above-mentioned developments in the ASEAN regions. The country is located in a region with unique economic potential. It is not only the case that Southeast Asian manufacturers of packaging machines have a considerable price advantage, for example through location advantages, but also through high investments and innovation developments have achieved a quality standard that does not deviate from European quality.
Many Asian regions have managed to catch up with the pioneer Europe in quality, efficiency and confidence and are now ready to positively change the European market with economic advantages. However, member states need the right catalysts to ignite more dynamic and inclusive growth.
Global trade flows, free trade agreements, and innovative technologies are the keys to unlocking the region's full potential and creating international trade in the packaging industry.
Although great uncertainty remains, ASEAN as a region has shown resilience in the face of the current exceptional situation. GDP growth has proven relatively stable during the pandemic. The Asian economy fell by 1.5% in 2020, while the global economy fell by as much as 3.2%. Asia is expected to recover much faster, with the International Monetary Fund (IMF) in July 2021 forecasting Asia to grow by 7.5 per cent in 2021 and 6.4 per cent in 2022, compared to 6.0 per cent and 4.9 per cent for the global economy.
Since its establishment in 1967, ASEAN (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) has opened its markets to both ASEAN member countries and countries and regions outside ASEAN to stimulate inter-regional economic activity through foreign direct investment (FDI) by multinational companies.
Thanks to the policy of openness, ASEAN has successfully achieved rapid economic development and has become a growth centre in the global economy, occupying a central position in production networks.
The global packaged machinery market was worth $40.08 billion in 2019 and is expected to reach $52.83 billion by 2027, growing at a CAGR of 3.6%.
The largest growth markets for packaged food are in Asia, Middle East/Africa and Latin America. These three regions together account for
55 % of the total trade volume.
Companies producing packaging machinery and materials are growing exponentially, triggered by these advancing developments. These are becoming more dominant in the world market and more interesting for Western companies.
Foreign direct investment (FDI) inflows to ASEAN reached an all-time high of $182 billion in 2019, making ASEAN the largest recipient of FDI in the developing world.
Due to the unprecedented impact of the COVID-19 pandemic, FDI declined to $137 billion in 2020, which is quite significant, but compared to the decline in global FDI, ASEAN still fared slightly better. Their share of global FDI increased from 11.9% in 2019 to 13.7% in 2020.
In recent years, ASEAN countries not only made full use of their low-cost advantages and actively undertook international industrial transfers, but also completed a series of innovative measures.
These measures led to the improvement of the competitiveness of advanced manufacturing industries, thus demonstrating their ambition to accelerate the industrialisation process.
As the figure shows, FDI in the manufacturing sector was huge before the pandemic, ranking third after finance and insurance. This investment has declined over the last 2 years, but it is expected that with the rapid restoration of the normal economy in the ASEAN region, investment, especially in the manufacturing sector, will reach a new high (e.g. in the packaging industry).
ASEAN countries and their current dialogue partners have largely completed negotiations and signed the Regional Comprehensive Economic Partnership (RCEP) agreement in November 2020.
This is the world's largest trade agreement, accounting for about 15 per cent of global FDI stock and more than 33 per cent of global FDI flows in 2020, and is expected to enable ASEAN and its partners to further boost investment and promote the development of the global value chain in the region.
In addition, the FTA negotiations with the EU are of great economic importance for Europe, as the ASEAN region has dynamic growth and offers significant potential for economic cooperation. The EU is initially negotiating bilaterally with individual ASEAN countries, as a regional approach to negotiations has not led to concrete results in the past.
Successes so far:
Vietnam: the EU and Vietnam signed a free trade agreement and an investment protection agreement in Hanoi on 30 June 2019.
Singapore: the EU and Singapore signed a Free Trade Agreement and an Investment Protection Agreement at the ASEM Summit on 18-19 October 2018.
The rest of the ASEAN countries are still in negotiations.
According to studies, Southeast Asia's packaging machinery market is expected to develop tremendously in the period from 2020 to 2026 and figuratively, due to the above reasons, generate value for Europe to the global market.
Key players in the global packaging machinery market have evolved key strategies such as product launches and business expansion to strengthen their market presence and counter the fierce competition in the market.
For decades, the export industry has played a crucial role in the remarkable socio-economic development of Southeast Asia.
But while several other Asian manufacturing economies have developed into world-leading industries and innovations, most of Southeast Asia is still seen primarily as a location for low-cost but high-quality manufacturing.
However, ASEAN member states already have a number of well-established manufacturing clusters and the potential to generate importance and influence as investment increases. This is particularly focused on the packaging machinery sector.
Southeast Asia could be in a position to make great strides in economic development and expand opportunities for integration.
The emerging economies of Southeast Asia are a destination for companies looking for such locational advantages.
Europe has and will continue to recognise the importance that ASEAN countries bring to the packaging industry.
Tremendous growth, fuelled by a wide variety of location and economic factors, has made ASEAN one of the most attractive places in the global packaging world.
Companies in Europe can draw enormous benefits from the above-mentioned developments in the ASEAN regions. The country is located in a region with unique economic potential. It is not only the case that Southeast Asian manufacturers of packaging machines have a considerable price advantage, for example through location advantages, but also through high investments and innovation developments have achieved a quality standard that does not deviate from European quality.
Many Asian regions have managed to catch up with the pioneer Europe in quality, efficiency and confidence and are now ready to positively change the European market with economic advantages. However, member states need the right catalysts to ignite more dynamic and inclusive growth.
Global trade flows, free trade agreements, and innovative technologies are the keys to unlocking the region's full potential and creating international trade in the packaging industry.
JR New Horizons GmbH
Georgsplatz 1,
20099 Hamburg
JR New Horizons GmbH
c/o Mindspace
Georgsplatz 1,
20099 Hamburg
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