According to Nikkei Asia, Southeast Asian companies are tapping into rising demand in China and finding growth opportunities despite deflationary pressure by focusing on such added value as health benefits and luxury.

Photo: Coconut water products from IFBH, a company founded in Thailand, which held a 34% share of China’s coconut drink market in 2024 (Source: Kenya Akama).

IFBH (Thailand), the leading coconut-water-related beverages brand in China, recorded an 80% increase in revenue in 2024, with 97% coming from the China–Hong Kong market. Although its prices are higher than domestic brands, IFBH has captured 34% of the market thanks to China's growing health-conscious consumer trend. The company has expanded rapidly following its listing on the Hong Kong stock market and its partnership with COFCO, a Chinese state-owned enterprise, enabling it to reach more than 1 million retail locations and vending machines across over 200 cities in China.

Beyond beverages, hotelcompanies such as Minor International (Thailand) and Banyan Group (Singapore) are also setting their sights on China, with plans to open dozens of new hotels in major tourist destinations.

Southeast Asian investment in China has occurred since the 1980s, but today’s companies are considered part of a “third wave” — shifting from price competition to offering value-added products and targeting high-income consumers. Although China’s economy is facing deflationary pressure and a weak real estate market, medium-to-long-term demand for health care and leisure services remains strong./.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam