China’s Belt and Road Initiative has fallen in favor with a lot of countries across Asia, as nations are starting to realize the cumulative good that the deal brings for them.
While Southeast Asian countries took some time falling in favor of the One Belt and Road Initiative, the recent trends suggest that there has been commendable progress towards implementation of the initiative within the country.
The investments for the One Belt and Road initiative within this part of the continent are showing massive signs of recovery after news of the trade wars between China and the United States. The punitive taxation by the US, including tariffs, has given Asian countries another reason to get together.
The investment and construction contracts for China have nearly doubled to around $11 billion in Southeast Asia within the first half of this year. This figure for investment in Southeast Asia was at $5.6 billion during the end of the second half of last year. These figures were revealed as part of a report overseeing Chinese investment in Southeast Asia.
The investments made in One Belt and Road Initiative are largely focused in Cambodia, Vietnam, Singapore, and Indonesia. These investments have led to the creation of a unique trend, where the infrastructure in Southeast Asia is being radically improved.
“Asia will likely see a stronger recovery in China’s (Belt and Road) flows, as other regions push back against China investments,” the report added.
This increase in overall investment was seen as a direct result of investor interest in Chinese goods, after the trade war between United States and China gained fuel.
Vietnam saw an amazing surge in the registered foreign direct investment coming from both Hong Kong and China into the country. Vietnam saw a massive increase of 200 percent in foreign direct investment during the first seven months of this year.
Furthermore, GoerTek, one of the main manufacturers for Apple has set up a plant in Vietnam for the production of the popular wireless earbuds introduced by Apple. This plant alone saw the investment of over $260 million into the nation.
The trend towards tech and the digital economy within Southeast Asia is attracting Chinese money. With Asia slowly and gradually rising, we might soon see Southeast Asia and China become the tech hub of the world.