2024 ASEAN Business Alliance Trade Survey
Summary of results:
- The 2024 ASEAN trade survey, completed by 36 respondents, provides useful insights into the business environment and trade dynamics for New Zealand companies operating in the ASEAN region. The respondents were predominantly based in New Zealand (47%), with significant contributions from Singapore (22%) and Malaysia (16%). There was a marked decrease in responses from Vietnam and Thailand, which accounted for a substantial portion of the feedback in 2023.
- Respondents expressed cautious optimism about future growth opportunities in ASEAN, driven by increasing populations and rising middle incomes. However, challenges such as rising operating costs, currency volatility, and a complex regulatory environment were significant concerns. Many businesses reported difficulties navigating local regulations, particularly in Indonesia, where import licenses and factory registration pose ongoing hurdles.
- Despite these challenges, local partnerships continue to be viewed as a critical strategy for market entry, enabling companies to leverage existing networks and cultural insights. There is a growing recognition of the need for improved market intelligence, with many respondents advocating for government support in this area, emphasizing the importance of depth and expert connections rather than surface-level research.
- The survey reveals that respondents have felt a shift and increase in focus in the New Zealand government prioritisation of ASEAN as an important trade region. Success in the markets is dependent on strong business relationships and companies have seen increasing business travel within the region and too New Zealand in the past year. The post pandemic resumption of travel has helped to ease inter-regional labour mobility but travel to New Zealand is still noted as a challenge.
- 31% of respondents have had issues with visa and immigration settings in New Zealand (pg 17). Businesses feel that there needs to be an increased focus on improving visa processing times for business purposes. They are advocating for the implementation of an expedited user-pays system for urgent visas, which would allow for faster and more efficient processing of visa applications.
- Looking ahead, the 2025 milestone marking the 50th anniversary of ASEAN-New Zealand relations presents a strategic opportunity for enhancing trade ties and promoting New Zealand businesses. Overall, while optimism exists regarding the ASEAN market, addressing regulatory, operational, and competitive challenges remains essential for New Zealand exporters seeking to expand their footprint in the region.
Click here to download 2024 ASEAN Business Alliance Trade Survey Report (PDF)