The China Service Outsourcing Research Center released the “Report on the Development of China’s Foreign Trade Logistics” at the 137th China Import and Export Fair (Canton Fair) on the 16th. The report shows that Southeast Asia is one of the regions with the fastest growth in China’s foreign trade logistics in recent years, mainly benefiting from its close geographical location, regional economic integration, and the deepening cooperation within the China-ASEAN Free Trade Area.

The report points out that in recent years, the layout and development of China’s foreign trade logistics in emerging markets such as Southeast Asia, Latin America, the Middle East, and Africa have shown significant changes. These regions, due to their economic growth potential, demographic dividends, and market openness, have gradually become important directions for China’s foreign trade logistics. Among them, the trade volume between China and Southeast Asia has continued to grow, and the logistics demand in fields such as cross-border e-commerce, electronic products, and mechanical equipment has increased significantly. The report shows that in 2024, various fields of China’s foreign trade logistics presented many bright spots. The total volume of import and export freight under customs supervision throughout the year exceeded 5.6 billion tons, a year-on-year increase of 5.0%.

Favorable Geographical Location: Southeast Asia is adjacent to China, with convenient transportation and relatively low transportation costs. For example, after the opening of the China-Laos Railway, the cross-border freight volume has increased by more than 10 times in three years, becoming a “golden channel” connecting China and Southeast Asia.

Deepening of Regional Economic Integration: China and ASEAN have deepened their cooperation through the Regional Comprehensive Economic Partnership (RCEP) and the upgraded version of the free trade area (version 3.0), covering fields such as the digital economy and the green economy. After the entry into force of the RCEP, 90% of the goods trade within the region has achieved zero tariffs, providing an institutional guarantee for trade between China and Southeast Asian countries, promoting trade exchanges, and further driving the growth of foreign trade logistics.

Deep Binding of the Industrial Supply Chain: Although Southeast Asian countries have undertaken some of the manufacturing industries transferred from China, they still highly rely on China’s supply chain. For example, 70% of the components required by Vietnam’s electronic assembly plants need to be imported from China. This model of “Chinese technology + Southeast Asian assembly” has formed a deep nesting between the two sides in the industry, with frequent trade in intermediate goods, driving an increase in logistics demand.

Huge Market Potential: Southeast Asia has a population of over 650 million, with a large young consumer group and huge market potential. The consumer markets of the two sides are highly complementary. In 2024, Vietnam’s durian exports to China surged by 48.6%, and Cambodia’s longans were for the first time allowed to enter the Chinese market. The growing trade exchanges have promoted the rapid development of foreign trade logistics.

Continuous Improvement of Logistics Infrastructure: China has increased its investment in the logistics infrastructure of Southeast Asia, and local countries are also actively improving transportation and other infrastructure. For example, multiple ports have added shipping routes to Southeast Asia, and the efficiency of logistics transportation has been improved, providing strong support for the growth of foreign trade logistics.