Industry News | Seize Southeast Asia! Garden tool enterprises accelerate layout, Chinese manufacturing 'green' moves ASEAN
In recent years, Chinese landscaping tool companies have accelerated their layout in the Southeast Asian market, with countries such as Vietnam and Thailand becoming popular choices for capacity transfer. Faced with high cost pressures and trade barriers in the US market, Southeast Asia is emerging as a new hub in the global tool industry chain, leveraging its labor advantages, policy dividends, and rapidly growing local demand.
In the early stages, Chinese companies mainly followed power tool giants such as TTI and Stanley&Byton to invest in Vietnam, relying on subjective factors such as geopolitics. However, after extensive field investigations and comparisons, it was found that the relevant policies of Southeast Asian countries such as Thailand, Malaysia, and Indonesia were more competitive than those of Vietnam. Thailand is not only highly attractive in terms of cost, but also has significant advantages in talent quality and cooperation environment, making it an ideal choice for Chinese garden electric tool enterprises to go global.
01 Typical Enterprise Layout Case
Quanfeng
Quanfeng Global has four major manufacturing bases, including Quanfeng Technology New Energy Industrial Park (power tools, OPE products) and Quanfeng Technology Industrial Park (power tools) located in Nanjing, China, FLEX factory (power tools) located in Steinheim, Germany, and Quanfeng Vietnam factory (OPE products) located in Pingyang, Vietnam.
Greebo
In order to cope with the fluctuations in Sino US relations, 2019
Plante
In order to meet the procurement needs of large multinational electric tool enterprises and leverage the production cost advantages of Southeast Asian countries, in 2018
Establishing an electrical company
Establishing an electrical company by raising funds for the production project of 2 million lithium electric tools per year, investing in the construction of an annual production project of 800000 handheld electric tools and spare parts in Vietnam, expanding marketing networks, and enhancing brand building projects. The new lithium battery factory is expected to produce 2 million electric tools annually, with an estimated annual revenue of 61 million yuan. The Vietnam factory is expected to have an annual output value of 30 million US dollars.
Lake Group
Laker Group has factories in Vietnam and Thailand with a total area of over 750000 square meters, covering the assembly of vacuum cleaners, small appliances, and garden tools, manufacturing of high-speed motors and automotive motors, precision die-casting and processing.
Baoshi De
The Baoteng factory in Vietnam is one of the important manufacturing bases of the Baoshi De Group. Since its establishment in July 2019, it has gone through a process of development from scratch. On March 12, 2021, the Vietnam Proton factory held a grand celebration ceremony for the "one millionth product offline".
02 Market Opportunities and Promotion Strategies
The ASEAN region is experiencing rapid urbanization and economic growth, particularly in the real estate and infrastructure sectors. The improvement of urban greening, public spaces, and the increasing demand for outdoor living facilities provide broad market prospects for landscaping and related industries. It is expected that the ASEAN economy will grow by 4.7% in 2024 and increase to 4.9% in 2025, with outstanding performances from countries such as Vietnam, the Philippines, and Indonesia. Thailand, Malaysia and other countries have attracted Chinese garden electric tool companies to set up factories by leveraging policy dividends and localized supply chain trends, in order to avoid trade barriers and stay close to the market. At the same time, the China ASEAN Free Trade Area 3.0 and RCEP (Regional Comprehensive Economic Partnership) have deepened regional economic and trade cooperation, further improved trade and investment facilitation within the region, and entered a new stage of mutual benefit and win-win cooperation between China and ASEAN.For enterprises interested in exploring the ASEAN market, participating in regional professional exhibitions is an important way to enhance brand influence and expand market share.
Disclaimer: The above content is sourced from the foresight of the electric tool industry and the Jiangnan Electrical Tool Alliance. The copyright belongs to the original author. If there are any copyright issues related to the work, please let us know and we will handle them promptly!