7 Top Investment Destinations in Far East Asia for Foreign Businesses

Today, the Far East Asia region is home to a high concentration of rapidly developing economies. While there is a tendency among some investors to lump all these economies under one umbrella, the reality is that many of them have developed unique competitive advantages. In this article, we'll highlight some of the top investment destinations in this part of the world, taking a brief look at what sets each one apart from its peers.

The Philippines

The Philippines has become a hot spot for foreign investors due to its strategic location, young and skilled workforce, and highly diversified and stable economy. With a GDP growth rate of 7.6% in 2022, the Philippines has recently joined the ranks of the fastest-growing economies in the world, giving it a healthy domestic consumer market as well. Thanks to a series of reforms and a succession of serious infrastructure programs, this growth is seen to continue well into the next decade.

 Foreign investors that are planning to move operations to the Philippines will find a country that has transformed much in the past several years. With less bureaucratic red tape and substantial tax incentives, investors are freer to use the country’s skilled labor resources to their advantage. What’s more, finding an infrastructure company in the Philippines that can accommodate any need is easier than ever before, thanks to the experience gained by private sector firms, which now lead the country’s push towards competitiveness and sustained infrastructure development. Developers like Aboitiz InfraCapital leverage their experience to build master-planned economic estates that are able to accommodate all the requirements of foreign locators.

Vietnam

From the horrors and devastation of war, ??Vietnam has emerged as one of the top investment destinations in Asia in the last two decades. Today, the country is known for its favorable government policies towards foreign investment, its ever-improving infrastructure, and its fast-growing consumer market bolstered by a thriving middle class. Moreover, Vietnam's strategic location and membership in several regional trade agreements make it an attractive hub for businesses looking to tap into the Southeast Asian market. Unlike some of its neighbors, the country also offers a stable political environment and a relatively low risk of natural disasters, adding to its attractiveness as a destination for foreign direct investments.

Singapore

Apart from its small size and uniquely stable political system, Singapore is perhaps best known for being a critical global finance, logistics, and manufacturing hub. Over the years, it has steadily and methodically diversified its economy, developing mature petrochemical, biotechnology, and tourism industries along the way. Furthermore, the government has consistently made efforts to support its indigenous startup ecosystem and promote innovation, making it an attractive destination for tech companies.

Singapore is also known for its high living standards and top-notch educational systems, both of which have been instrumental in attracting a high number of investors and other high-net-worth individuals to the country. This concentration of value-creators has, in turn, helped further boost the local startup ecosystem by facilitating collaboration and providing multiple potential sources of capital.

China

China is the world's second-largest economy and it’s likely to take the top spot within the next decade. The country’s remarkable rise to dizzying economic heights will be studied by historians for centuries to come. However, what investors are most interested in—in the here and now—is its massive consumer market. With a total population of over 1.4 billion and a middle class composed of 900 million people, China’s value as a market for consumer and luxury goods is difficult to understate.

Furthermore, the country’s massive and well-educated population allows it to offer a vast pool of skilled workers and a mind-boggling array of competitive supply chain options. For many companies, China is the only country that can offer all the inputs they need at a cost they are comfortable with. 

China’s massive wealth now means that, soon, it will no longer be the preferred mass producer of low-cost goods for many businesses. However, it is now making impressive shifts toward accommodating high-tech manufacturing and other difficult-to-enter industries, with many investors all too eager to enter these spaces.

South Korea

South Korea, the home of global brands like Samsung, LG, and Hyundai, is known the world over for its advanced electronics and heavy machinery industries. Today, the country’s tech companies are at the very leading edge of various high-tech categories, from integrated circuits and telecommunications products to cargo ships and military aircraft.

This outsized capability is due in part to the country’s highly educated workforce. Indeed, South Korea is widely considered to be one of the world’s best in research and development, particularly in the tech and pharmaceutical industries. This makes the country highly attractive to businesses engaged in cutting-edge product development.

Japan

Japan is one of Asia’s leading economies and a cultural superpower. As with South Korea, Japan also has a strong focus on innovation, making it an ideal destination for businesses looking to invest in different kinds of research and development. Additionally, the country has a richly deserved reputation for quality manufacturing, making it a preferred destination for investors who are unwilling to compromise on quality.

Taiwan

Taiwan is a small island nation that's made a name for itself in the design, development, and production of semiconductors and electronics. Today, virtually every high-end piece of consumer electronics has at least one Taiwanese company involved somewhere in the supply chain. With a highly skilled workforce and a government that's committed to promoting technology, Taiwan is an attractive destination for companies who want to benefit from Taiwan’s tech leadership, particularly in high-end manufacturing.

Far East Asia offers a wealth of investment and value-creation opportunities for those who know where to look. From the Philippines' young and skilled workforce to Japan's reputation for quality manufacturing, every country on the list offers unique competitive advantages that make each of them an attractive destination for the right investors. As always, investors who are interested in moving their operations outside of their home countries should carefully weigh the risks and benefits before committing.