Following Expansion in China, Regional Private Equity Faces New Scrutiny in Southeast Asia

The Southeast Asian region is experiencing an unprecedented economic and industrial boom as a result of rising consumer demand, government decarbonization mandates as well as diversification priorities under the so-called “China Plus One” shift. The rapid expansion of electric vehicle (EV) adoption, battery manufacturing, logistics and consumer services is attracting a growing number of investors to growth opportunities across the member states of ASEAN. The automotive and two-wheeler EV sector in Thailand, Indonesia’s battery cathode precursor manufacturing, Vietnam’s lithium-ion cell assembly, and the regionally booming sectors of third-party logistics (3PL) and digital consumer services have seen an uptick in investment from private equity firms originating in South Korea and Japan, as