How German corporates can harness emerging opportunities in Asia
Commerzbank launches a new whitepaper that highlights key opportunities for German businesses in Asia and examines how a closer engagement with growing markets can be beneficial, considering the changing composition of the global economy.
As the global economy enters 2023 with a renewed sense of concern related to inflationary pressures and higher rates, a strategy around diversification and risk management is key to hedge against any protracted slowdown.
In this latest whitepaper, Commerzbank explores Asia’s potential for German businesses that are seeking diversified trade and investment prospects while balancing them with an ever-increasing attention on sustainability.
Some of the emerging opportunities the whitepaper identifies include:
- Diversification across burgeoning ASEAN markets like Vietnam, Malaysia, and Indonesia where growth rates are expected to outstrip global peers;
- Taking advantage of supply chain diversification in Southeast Asia, given its business-friendly environment and robust growth in the manufacturing sector;
- Using German expertise to make supply chains more sustainable in the region.
Commerzbank also believes that a sustainable supply chain model will gain traction in the region, propped up with a renewed focus on global ESG mandates. Emerging markets are already facing growing pressures to adapt to the sustainability requirements of developed economies which they rely on for trade. Additionally, to support the burgeoning manufacturing hubs in the region, Commerzbank predicts the rapid growth in green and sustainability linked loans will continue in the near future.
Leveraging our in-depth regional expertise and experience, in the whitepaper, Commerzbank also examines how Asia’s complex rapidly changing regulation regime might pose risks and challenges for German corporates. We also look at why a “China Plus One” strategy should be considered here in the region despite the country’s shifting economic model and changing industrial focus.
Through our new whitepaper, we aim to prepare German businesses and kickstart a discussion on how to leverage the opportunities and challenges in Asia, where diversification across the region is key, while maintaining the strength of the solid relationship with established and trusted trading partners like China. We expect cross-border cooperation, sustainability, and best global practice to remain top of mind for German corporates in the region for some time to come.