China, 28th Mar 2025 – In 2024, Southeast Asia’s economy rebounded stronger than expected, turning China’s investors’ focus to how Chinese enterprises will expand in the region in 2025.
The International Monetary Fund(IMF) projects that GDP growth across six Southeast Asian countries will outpace 2023 levels in 2024 and maintain steady momentum into 2025. Reports from HSBC and Malayan Banking also highlight ASEAN’s resilience and strong growth potential, far exceeding the global average in the coming year.
A recent visit by Thai officials to China led to the approval of Phase 2 of the China-Thailand high-speed railway, a key milestone. Beyond enhancing local infrastructure, the project aims to boost regional economies, reshape Southeast Asia’s land-sea transport network, and open new avenues for growth.
In the long run, Southeast Asia’s economic rise remains clear, offering a steady stream of opportunities for Chinese enterprises expanding abroad. The region will continue to be a key destination for growth and investment.
1. Booming Infrastructure Demand in Southeast Asia: What Opportunities Lie Ahead?
What growth opportunities exist in Southeast Asia’s rapidly emerging market?
First, let’s examine urbanization rates. Among the five key Southeast Asian nations (Indonesia, the Philippines, Malaysia, Thailand, and Vietnam), the average urbanization rate in 2023 stood at 55.7%, comparable to China’s level in 2014. By contrast, China’s urbanization rate had risen to 64.6% by 2023.
Urbanization in Southeast Asia is set to accelerate. As more people migrate to cities and shift into industries and services, the expansion of infrastructure, social services, and industrial parks will be inevitable.
Furthermore, Southeast Asia has a young demographic structure, forming a healthy “positive pyramid.” This demographic trend will strongly support future real estate and infrastructure developments.
In the long run, accelerating urbanization is set to drive a surge in infrastructure demand. According to (China International Capital Corporation)CICC’s analysis, using the fixed capital formation-to-GDP ratio, shows most Southeast Asian countries at 20–30%, well below China’s 40%+. This disparity highlights that infrastructure growth has lagged behind economic expansion, leaving significant unmet demand.
Consequently, there is an urgent need for improvements in public facilities (electricity, telecommunications, gas pipelines, water supply, and sewage systems) and public works (dams, water conservancy projects, irrigation, and drainage systems). This immense long-term infrastructure demand will drive the need for construction machinery, chemicals, and pipeline materials.
In recent years, Southeast Asia has solidified its position as a premier destination for global investment, driven by proactive government policies and the accelerated rollout of large-scale infrastructure initiatives. This strategic push underscores the region’s growing economic significance and its commitment to fostering a robust environment for international capital.
In Indonesia, 195 national strategic projects, nearly 100 in transportation, are now fully operational. Plans include extending highways to industrial zones and special economic areas.
The capital relocation will further drive demand for housing, commercial developments, transportation networks, utilities, and public facilities, fueling a massive infrastructure boom.
The Belt and Road Initiative (BRI) has strengthened ties between Southeast Asia and China, allowing Chinese enterprises to gain a strong foothold in local markets. With competitive advantages in pipelines, building materials, and more, we are well-positioned to expand into engineering, equipment supply, and investment operations.
In 2024, China’s exports to ASEAN grew by 12.0%, far exceeding the overall 5.9% growth rate. From January to November, construction machinery exports rose 7.16%, with Southeast Asia as a key driver.
In building materials, LESSO has been expanding into Southeast Asia for over a decade, developing trade, distribution networks, and local manufacturing. In H1 2024, LESSO’s overseas revenue has reached 1.32 billion CNY, up 15% year-over-year, making global expansion a major growth engine.
Moving forward, as Southeast Asia’s economy and urbanization accelerate, these industries will continue to benefit, creating new opportunities for Chinese enterprises.
2. Pipeline and Building Materials Industry Go Global: LESSO Sets the Benchmark for Overseas Expansion
Focusing on the construction materials industry, LESSO serves as a benchmark for investment opportunities in the overseas pipeline materials sector.
From a demand perspective, Southeast Asia’s infrastructure expansion will inevitably drive increased demand for municipal water supply and drainage systems, alongside commercial and residential interior pipeline needs, offering ample growth prospects for Chinese enterprises.
LESSO has implemented a comprehensive strategic plan to support its expansion in the Southeast Asian market, ensuring sustained growth momentum for its overseas business.
LESSO has established production bases across Indonesia, Cambodia, Thailand, Malaysia, and Vietnam, leveraging its operational expertise to drive localized manufacturing and steady global expansion.
LESSO is positioning itself closer to local markets, enabling real-time insights into trends and consumer preferences. This allows for product adjustments tailored to local demand, ensuring a better market fit.
By localizing production, LESSO is building a regional scale advantage in plastic pipelines, strengthening its market leadership and creating a barrier competitors struggle to overcome. This also enhances cost control, boosts brand presence, and increases overall competitiveness.
LESSO leverages its technical edge to offer specialized pipeline solutions for diverse needs, spanning home renovation, civil construction, municipal water and drainage, energy, telecom, gas, firefighting, environmental protection, agriculture, and marine aquaculture.
With a diverse product portfolio, LESSO is capable of providing comprehensive solutions across various sectors. This allows the company to offer customers a full range of products and services, further unlocking economies of scale, strengthening its competitive and cost advantages, and continuously enhancing its position in the overseas market.
LESSO has achieved remarkable success in global markets. In Cambodia, it has been involved in several major projects, including the Banteay Meanchey Water Project, Techo International Airport, the expansion of the water supply network for the Pursat Provincial Water Authority, and Sihanoukville Borey International Hotel. In Malaysia, LESSO has established a strong market presence through its three local brands: PALING, SPIROLITE, and SNOW.
LESSO has built a strong presence across Southeast Asia, earning market recognition for its high-quality products and technical expertise. By leveraging local advantages and a reliable supply chain, it meets diverse market needs, maximizes production capacity, and enhances efficiency—driving sustained growth and profitability overseas.
From production and products to technological innovation and tangible project achievements, Lesso has established significant competitive advantages in overseas markets, further solidifying its market position.
Long-term, LESSO is well-positioned to capture Southeast Asia’s growth opportunities, expanding its market share and influence. Its overseas revenue is set to rise steadily.
Looking ahead, Southeast Asia serves as a strategic springboard for global expansion. With U.S. policies like friend-shoring and the Inflation Reduction Act (IRA) encouraging local and allied supply chains, LESSO’s manufacturing presence in Southeast Asia and Mexico provides a competitive advantage by effectively mitigating tariffs and enhancing global market competitiveness. This positions LESSO to further increase its market share in Europe and North America, paving the way for even greater growth and opportunities.
3. Conclusion
With a young population, strong urbanization potential, and rising infrastructure demand, Southeast Asia is gaining momentum. Supportive fiscal policies and a favorable monetary environment further drive growth. As it emerges as a “new global factory and market,” the region is a key link in global supply chains and a prime destination for Chinese enterprises going global.
Leading pipeline brand LESSO is deepening its presence in Southeast Asia, actively engaging in national infrastructure projects and municipal upgrades. Its expanding market reach strengthens brand influence and competitiveness. As the region moves toward sustainable, inclusive growth, global investors remain keen, and LESSO’s strong overseas performance is set to drive further investor confidence.
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