After eight years, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) will come into effect on January 1, 2022.
At present, the free trade zone with the largest population, the largest economic and trade scale and the most development potential in the world will officially set sail.
What is RCEP? What is the strategic significance? Where are the investment opportunities brought by? Xiaoxing will explain it for you! picture
What is RCEP?
Initiated by the 10 ASEAN countries in 2012, six dialogue partner countries, China, Japan, South Korea, Australia, New Zealand, and India were invited to participate, aiming to establish a 16-country free trade agreement with a unified market by reducing tariffs and non-tariff barriers.
On November 15, 2020, the long-awaited RCEP was officially signed. The 15 countries formally concluded the world's largest free trade zone covering the Asia-Pacific region (India withdrawal).
On January 1, 2022, RCEP will be the first to operate in 6 ASEAN member countries including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam and 4 non-ASEAN member countries including China, Japan, New Zealand and Australia.
RCEP has far-reaching strategic significance
This agreement is indeed very influential and has far-reaching strategic significance to countries in the region. Why? Let's look at a set of the most important data:
RCEP covers 47% of the global population, 32% of global GDP, 29% of global trade and 32% of global investment. It is a free trade zone with the largest population, the most diverse cooperation, and the greatest potential for development in the world. It is an important engine for the recovery and development of the world economy.
Among the participating countries of the Regional Comprehensive Economic Partnership Agreement (RCEP) and the Trans-Pacific Partnership Agreement (TPP), Japan, Australia, Brunei, Malaysia, Singapore, New Zealand, and Vietnam have participated.
From an economic point of view, the free trade agreement reduces transaction costs, not only stimulating demand, but also improving production efficiency.
The technological advantages of China, Japan and South Korea, the labor advantages of ASEAN countries and the natural resource advantages of Australia and New Zealand are fully integrated.
It can give full play to the comparative advantages of each member, complement each other, and achieve mutual benefit, and the effect of 1+1>2 can be achieved.
Where are the investment opportunities brought by RCEP?
For the long-term goals of wealth generation, children's education, pension, and enterprise development, the most stable allocation is real estate. Investing in real estate is more like investing in the development of the area itself.
As the center of ASEAN, Southeast Asia has a sufficient demographic dividend and the world’s fastest-growing GDP.
A world-class development center is expected to be completed here, and future investment opportunities are here!
Southeast Asia is expected to become a world-class development center for three reasons:
The entire area of Southeast Asia is in the stage of economic upswing. It will become a ground for global industrial transfer, and the overall economy will continue to rise in the future.
Here is the most obvious demographic advantage in the world, with more than 50% of the population under 30 years old.
Unique geographical advantage. Southeast Asia borders on the Chinese border, and the "One Belt, One Road" strategy is a very big boost for Southeast Asia.
Compared with other developed countries, or compared with China, Southeast Asian countries have a slightly weaker economic foundation, which also means that their economic scale has plenty of room for growth. This point can be learned by learning from China's development over the past 30 years.
Vietnam | Map Data Network
Housing prices in Phnom Penh have risen from US$1,000 to US$4,000, but the situation is only three to four years; Bangkok’s subway lines are under construction day and night, and the China-Thailand high-speed rail is under construction; Vietnam’s Ho Chi Minh stock index surpasses the skyrocketing of U.S. stocks...
The current growth rate of the property market in developed countries has slowed down. If investment is to have a richer return, and the capital investment is relatively low, from the current point of view, it is very good to choose Southeast Asia.
Singapore | Information Network
Here are two simple investment logics for investors to refer to according to their investment needs.
Logic 1: Risk and opportunity coexist. Take certain risks and get high returns.
Logic One's investment areas are: Bangkok, Thailand, Ho Chi Minh, Vietnam, etc., the core cities of countries with rapid economic development.
Logic 2: Seek growth in stability, and look for depressions in value.
Logic 2’s investment areas are: Singapore and Kuala Lumpur, Malaysia, which are centrally located in Southeast Asia and have a better economic foundation than neighboring countries.
Xingyunhai International Real Estate Project Appreciation in Hanoi, Vietnam
To learn more about scarce investment opportunities in core cities in Southeast Asia, please consult Xingyunhai International!