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Companies in southwest China's Yunnan expand market in Southeast Asia
10/18/2020




Companies in southwest China's Yunnan Province have actively tapped opportunities to expand market in South and Southeast Asia.

The Kunming Changshui International Airport is able to send cargo to 45 airports in the South and Southeast Asian countries, forming an efficient and convenient logistics channel for economic and trade exchanges in the regions.

"The scale of the whole international cargo has been growing. The volume recovered in September has surpassed that of the same month of last year," said Huang Xinxiong, deputy manager of Information Operation and Control Center, Yunnan Airport Group.

In the first three quarters of 2020, foreign trade volume grew by 18 percent year on year and trade volume with ASEAN increased by 24.9 percent year on year.

"We have seen a new breakthrough in the foreign trade of general commodities. The foreign trade in Yunnan Province reached 33.6 billion U.S. dollars in 2019, up from 16 billion U.S. dollars in the beginning of the 13th Five-Year Plan. The number doubled in these five years," said Zhang Qiu, head of Institutional Innovation Department, Kunming Area of China (Yunnan) Pilot Free Trade Zone.

A Kunming-based cross-border logistics company has seen a 40-percent increase of its total trade volume with Southeast Asian countries from last year.

As of present, there are 30 trucks heading for Southeast Asia by road every day. To further expand the market, a subsidiary company was registered in Vientiane, Laos, in August this year to undertake overseas logistics business.

"The subsidiary company in Vientiane mainly promotes major business in South Asia and Southeast Asia, which serves as a platform to expand domestic and foreign business. Next, it will actively work on registration of companies in Myanmar, Thailand and Cambodia," said Teng Zelin, chief economist of Yunnan Construction and Investment Holding Group.

Although the global economy was seriously hit by COVID-19 pandemic, Chinese companies have explored their ways to expand overseas market.

In the first eight months of 2020, Yunnan Province's foreign non-financial direct investment reached 913 million U.S. dollars, up 86.29 percent year on year.

Direct investment in countries along the "Belt and Road" totaled 595 million U.S. dollars, accounting for 66.76 percent of total outbound direct investment and up 69.52 percent year on year.

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