October 22, 2012
During a time when developed market economies are struggling to recover from the financial crisis and even large EMs such as China and India are slowing down, a group of emerging countries in Asia – comprising Bangladesh, Cambodia, Laos and Myanmar – has shown resilience and promising prospects for growth. The countries’ combined GDP is comparatively low at USD 187 bn, around one-fifth of the ASEAN-5 total and less than one-tenth of the Asian Tigers. But fast growth has enabled the group’s economic size to more than double since 2005 and it is projected to reach roughly the current size of Malaysia by 2017. Energy wealth, low labour costs and trade openness are the main competitive advantages, making them attractive as a manufacturing base. Macroeconomic stability has improved over the years, although there are of course areas for improvement: high current account deficits as well as under-developed infrastructure, financial markets and institutions. By 2017 the countries’ combined population will reach just over 250 million. Together with a rising GDP per capita, this means a much larger consumer market. There is large unmet demand for basic consumer products, durable goods such as electrical appliances and automobiles, and services such as telecoms and IT services.
Research Briefing 'New Asian frontier markets: Bangladesh, Cambodia, Lao PDR, Myanmar'
© Copyright 2013. Deutsche Bank AG, DB Research, D-60262 Frankfurt am Main, Germany. All rights reserved. When quoting please cite “Deutsche Bank Research”.
The above information does not constitute the provision of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do not necessarily correspond to the opinions of Deutsche Bank AG or its affiliates. Opinions expressed may change without notice. Opinions expressed may differ from views set out in other documents, including research, published by Deutsche Bank. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the information given or the assessments made.
In Germany this information is approved and/or communicated by Deutsche Bank AG Frankfurt, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht. In the United Kingdom this information is approved and/or communicated by Deutsche Bank AG London, a member of the London Stock Exchange regulated by the Financial Services Authority for the conduct of investment business in the UK. This information is distributed in Hong Kong by Deutsche Bank AG, Hong Kong Branch, in Korea by Deutsche Securities Korea Co. and in Singapore by Deutsche Bank AG, Singapore Branch. In Japan this information is approved and/or distributed by Deutsche Securities Limited, Tokyo Branch. In Australia, retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial product referred to in this report and consider the PDS before making any decision about whether to acquire the product.