SZ companies unlock lucrative opportunities for ASEAN nations

A view of the China-Vietnam (Shenzhen-Haiphong) Economic and Trade Cooperation Park (VCEP) in Haiphong, Vietnam. All photos are Shenzhen Media Group video screenshots

OVER the past decade, ASEAN has become Shenzhen’s largest trade partner under the Belt and Road Initiative (BRI) framework, with Cambodia, Vietnam and Singapore ranking as the top three destinations for Shenzhen investment.

Cooperation park in Vietnam

At 7:30 a.m. Vietnam time every day, over 15,000 workers descend upon the China-Vietnam (Shenzhen-Haiphong) Economic and Trade Cooperation Park (VCEP) to commence their working day.

Located in Haiphong, the third-largest city in Vietnam, the park was constructed and is operated by Shenzhen-Vietnam Joint Investment Co. Ltd. based in Shenzhen.

Li Meng, director of the investment and operation department of the company, has witnessed the park’s rapid development.

“When I first arrived to attend the groundbreaking ceremony of the park in 2016, I struggled to find a way inside. However, it soon became a regular occurrence to witness round-the-clock construction projects. I believe we brought the ‘Shenzhen Speed’ to this place,” Li said.

Four years ago, Li Jinwen took on the responsibility of expanding business in Vietnam for Autel Intelligent Technology Co. Ltd., a Shenzhen-based company specializing in automotive smart testing gear. As general manager of Autel’s Vietnam branch, Li noticed a stark contrast in the park compared to 2019 when he found hardly any people along the roads.

Li said Haiphong offers cost advantages in transportation and the local government provides favorable tax and talent policies.

“Establishing a presence in Vietnam is just the first step, and building deeper connections with local companies and individuals is vital for long-term development,” Li said.

Currently, the park accommodates 37 companies specializing in electronics and mechatronics, with 20 of them hailing from Shenzhen.

SZ tech in Laos

Recognizing the growing global demand for basa fish, Xiang Junjie, co-founder of Shenzhen Zhongyu Marine Technology Co. Ltd., seized the opportunity to set up a basa fish farm in Pakse, Laos, at the beginning of 2022.

To expand basa fish farming in Laos, Xiang has collaborated with a gene lab in Shenzhen to introduce advanced technologies to drive significant improvements in production. He invested in and developed a 2,000-hectare area dedicated to basa fish farming, successfully breeding around 1 million fish fries. Currently, over 90% of the fish fries are expected to survive, thanks to careful management and technological innovations.

Trade with ASEAN

From January to July of this year, Shenzhen’s foreign trade with ASEAN reached a record high of 306.9 billion yuan (US$41.95 billion), a growth of 6.0% year on year. In 2022, the number was 584.18 billion yuan.

In the first seven months of this year, Shenzhen enterprises established 92 new entities and institutions in BRI countries, involving a total investment of US$100 million, an 83.7% increase year on year, according to the city’s commerce bureau.

Collaboration between Shenzhen and ASEAN in emerging industries has deepened, yielding fruitful outcomes. At the China-ASEAN Forum on Emerging Industries in July, Shenzhen Gecko New Energy Vehicle Science and Technology Co. signed a contract for 500 vehicles for Myanmar customers.

Shenzhen companies are playing a crucial role in providing international engineering contracting services for BRI regions.

Between January and July of this year, the newly signed contract value of Shenzhen enterprises in these areas amounted to US$4.17 billion, reflecting an increase of 5.6% year on year, as per official data. (Shenzhen Daily)