Business Opportunitiesfor ASEAN at “China’s No.1 Fair”

It is a comprehensive international trading event with the longest history and the largest scale in China. Since the first Canton Fair was held in Guangzhou, China in 1957, it has attracted the attention of foreign businesses from hundreds of countries, including ASEAN countries, and has become a barometer for them to understand China’s foreign trade market and grasp world economic and trade trends.

ASEAN exhibitors at the Canton Fair

Since the first session to the conclusion of the 135th session on May 5 this year, the Canton Fair has gone through 67 years without interruption, with batches of overseas buyers eagerly negotiating and actively purchasing. Among them, many exhibitors come from ASEAN countries.

These ASEAN exhibitors range from old friends to newcomers. When asked why they chose to participate in this event, most of their answers were similar: to explore new markets.

At the Promotion Conference for Malaysia of the 133rd Canton Fair, Liew Chin Tong, Malaysia’s Deputy Minister of Investment, Trade and Industry, expressed that he hoped Malaysian exporters could showcase Malaysia’s strengths at the fair, so as to allow China and neighboring countries to better understand Malaysia and eventually establish Malaysia as a hub for Chinese enterprises in Southeast Asia.

According to the Thai media outlet Cantonfairholiday, the Canton Fair is a well-known exhibition among Thai traders and is an unmissable event for Thai SMEs. It is reported that many Thai entrepreneurs have participated in the fair multiple times, searching for different products. 

At the 134th session of the Canton Fair, Thanyaluk Pitisettakarn, the manager of the foreign trade department of Solex International (Thailand) Co., Ltd., received business cards from nearly 200 overseas buyers in just three days, many of whom expressed their willingness for further cooperation. “This is why we have never missed the Canton Fair in the past decade,” Thanyaluk stated. The fair provides a platform for foreign companies and products to exhibit to global buyers.

Additionally, held in Guangzhou, China, the Canton Fair offers more possibilities and conveniences for ASEAN businesses to collaborate with various Chinese partners. Kuncoro Wibowo, the Chairman of Indonesia’s Kawan Lama Group, mentioned that he has participated in the Canton Fair for 25 consecutive years. Through the fair, he has not only purchased high-quality Chinese products but also met many reliable suppliers and established good cooperative relationships with them.

The enthusiasm of ASEAN exhibitors to explore new markets is closely related to changes in the global foreign trade environment. According to Reuters, Jason Green, the Marketing Director of Anhui Guofeng Wood-Plastic Composite Co., Ltd., said, “There are more and more buyers from emerging markets such as South America and Southeast Asia. Traditional markets like Europe and the United States have been affected by the economic recession, leading many buyers in these countries to increasingly purchase online.”

Providing more business opportunities for ASEAN

Faced with well-prepared ASEAN exhibitors, the Canton Fair, with its superior resources of trade platform, provides numerous business opportunities for ASEAN enterprises to expand overseas markets. Through the fair, many ASEAN traders have not only purchased products with high quality and favorable prices but also opened up sales channels for their unique products.

According to Malaysia’s Sin Chew Daily, at the opening ceremony of the Malaysia Pavilion at the 135th Canton Fair this year, Tan Kok Wai, Malaysian Prime Minister’s former Special Envoy to China, stated, “The Malaysia Pavilion at the Canton Fair is built to showcase Malaysia’s diverse products and services to Chinese and global clients.” 

During the 135th Canton Fair, related organizations of Guangzhou held a supporting event called “the Professional Market Business Tour in Guangzhou”, inviting business organizations and enterprises from ASEAN countries such as Malaysia, the Philippines, and Singapore to visit the city’s professional markets, thereby helping ASEAN merchants to expand their business opportunities.

Walking into the Canton Fair exhibition halls, one may find that most ASEAN enterprises still predominantly focus on traditional manufacturing. According to the Vietnam Economic Times, Vietnamese enterprises, as regular participants at the Canton Fair, primarily showcased products such as machinery and equipment, motorcycle parts, and furniture products. Overall, other ASEAN exhibitors were also in a similar situation. There were more micro, small, and medium enterprises and fewer high-grade, precision, and advanced products.

Nevertheless, ASEAN enterprises have also attracted the attention of numerous merchants and visitors at the large-scale Canton Fair thanks to the advantages of traditional manufacturing. In many countries and regions, the manufacturing industry is still in its early stages, and the consumer markets are on the rise. This has led to a significant demand for various everyday items. Additionally, many ASEAN brands have made considerable upgrades in innovation and quality, so their market prospects are quite promising.

As ASEAN merchants deepen their involvement in the Chinese market, they continue to collaborate with Chinese partners, leading to innovation and upgrades in their own products. According to Harian Nusantara, despite fierce competition in China’s kitchenware industry, Indonesian companies remain determined to expand their market share in China. Vincent Mintarja Rijadi, a manager at Indonesia’s renowned tool company Krisbow, stated that the Chinese manufacturing industry is increasingly shifting towards artificial intelligence and digitalization. Collaborating with China will assist them in driving product upgrades.

Observing trends and seizing opportunities

The Canton Fair, where global buyers converge, is regarded as a barometer of the trade industry. It provides ASEAN merchants with a window on the latest trends in foreign trade and a platform to test whether their new products and technologies meet customer needs. 

A Vietnamese exhibitor bringing new products to the fair noted, “This product is made with bamboo inside and duck eggshells outside. Thus, each product has a very unique texture on the surface and a distinctive appearance. We offer customers an entirely new category. Different products are made with different materials, giving them more choices.”

As new products, technologies, and business forms continue to be showcased in the exhibition hall, ASEAN exhibitors are constantly seeking new development opportunities. For instance, in response to the cross-border e-commerce and overseas warehouse zone set up for the first time at this year’s Canton Fair, William Widjaja, the sourcing director of Indonesia’s retail giant Kawan Lama Group, who has attended the Canton Fair multiple times, stated, “Indonesia’s e-commerce has developed in recent years. At this year’s Canton Fair, our procurement needs have also been updated, with more focus on innovative products and cross-border services.”

It is worth noting that exhibitors can also share the policy advantages brought by the Belt and Road Initiative and the Regional Comprehensive Economic Partnership (RCEP) through the Canton Fair, allowing benefits to continually multiply.

 “Our power tools are sold to Vietnam and other ASEAN regions. The RCEP coming into force is beneficial for exports,” said a representative from Jiangsu Nantong Change Electric Tool Co., Ltd., which exhibited at the 131st Canton Fair. Compared to the previous all-waterway transportation from Jiangsu to Da Nang, Vietnam, transportation via the China-Europe Railway Express (Haian City-ASEAN) now saves about five days, significantly improving efficiency.

Despite the ever-changing foreign trade environment nowadays, ASEAN merchants have never ceased to explore new markets and lay out new fields. The Canton Fair provides ASEAN merchants with limitless possibilities to convert business opportunities into economic benefits.

The article is a composite of information from Sin Chew Daily, Harian Nusantara, Reuters, Vietnam Economic Times, and Xinhua News Agency.  

来源：《中国东盟商界》杂志 

文：唐  琪 

翻译：范星硕        

审定：林  涵