Why Asia’s once ‘too difficult’ markets are now essential

For years, UK entrepreneurs have viewed Asian markets as complex, fragmented and difficult to enter. Cultural and language challenges, complex regulatory systems and the sheer distance have made expansion to the east feel a step too far.

But global economic and geopolitical shifts are now challenging this long-held belief. Slower growth across Europe and the US, ongoing disruption to global trade and increasing geopolitical uncertainty are prompting UK businesses to rethink their global priorities. Meanwhile, governments and industries across Asia are investing heavily – especially in new technologies – but, in many sectors, their domestic capabilities are still limited. This is creating strong and growing demand for international expertise – often in areas where the UK excels.

Perhaps it’s no surprise, then, that the commercial case for British founders to expand into Asia is now looking not only stronger but, increasingly, essential – with a growing number already blazing a trail. Of course, Asia is not a single opportunity but a collection of dynamic, fast-growing markets – each with its own strengths, priorities and routes to entry. Among them, Vietnam, Indonesia and India stand out as particularly compelling.

Vietnam: a manufacturing powerhouse on the rise

Vietnam has quietly become one of the most attractive growth markets in Southeast Asia. With GDP expanding at around 7% annually, it ranks among the fastest-growing economies globally.

Its rise has been driven by its evolution into a major manufacturing hub. As global companies look to diversify production away from China, Vietnam has positioned itself as a credible, business-friendly alternative. Major electronics, automotive and industrial players are investing heavily, bringing with them rising expectations around productivity, efficiency and quality. This creates significant opportunities for UK entrepreneurs. Manufacturers in Vietnam are under pressure to modernise – adopting smarter production systems, automation and data-driven decision-making. Demand is growing for manufacturing technologies, industrial software and AI-enabled solutions that can optimise output while maintaining tight quality control.

And beyond manufacturing, Vietnam’s rapid urbanisation is creating a second wave of opportunity. Expanding cities are driving demand for construction technology and infrastructure planning tools, as well as energy and cleantech applications. Sectors such as agriculture, logistics and professional services are undergoing their own digital transformations. The country’s demographics only strengthen the case. With a population of over 100 million and a youthful workforce, Vietnam has a deep labour pool and a fast-growing consumer market. For UK scaleups, it offers strong growth potential, competitive costs and increasingly open business policies.

Indonesia: Southeast Asia’s gateway

While Vietnam stands out as a fast-growing manufacturing hub, opportunities in Indonesia arise from its sheer scale. As Southeast Asia’s largest economy and consumer market, it offers access to a vast and increasingly affluent population. And its long-term national strategy, ‘Golden Indonesia 2045’, sets out an ambitious plan to become a high-income economy by the centenary of its independence.

To achieve this, the government is investing heavily in infrastructure, industrial development and digital technologies – from transport networks and energy systems to data infrastructure and digital services. For UK company directors, opportunities now abound to support Indonesia’s accelerating domestic growth, fuelled by its increasing consumption, urbanisation and digitisation.

With one of the world’s largest and fastest-growing online populations, Indonesia is also seeing rapid expansion in ecommerce, fintech and digital services – not to mention data centres and cyber security as businesses and government agencies look to build resilient, future-ready systems. And, of course, Indonesia serves as a strategic base for accessing the wider Southeast Asian market, making it an attractive option if your products or services are in demand region wide.

India: scale, talent and ambition

India is, of course, one of the most significant global growth opportunities.  Already a £3 trillion economy and the world’s fourth largest, it’s projected to grow dramatically in the years ahead. Its population dynamics are equally striking, with more than 900 million digital users and a median age of under 29.

This combination of scale and youth is driving sustained demand across both consumer and enterprise markets. And India produces around a third of the world’s STEM graduates, many of whom are focused on solving global problems and building internationally competitive businesses. For British companies, India is increasingly accessible. Significant investments in digital infrastructure, together with progress towards a UK–India Free Trade Agreement, are lowering barriers to entry.

The country’s pro-business government is also driving growth through programmes such as ‘Make in India’, which encourages companies – domestic and international – to manufacture products in India rather than import them. The Production Linked Incentive scheme has further accelerated investment in high-value manufacturing, while the Digital India and Startup India initiatives have helped create the world’s third-largest startup ecosystem.

On top of this, new programmes – including the National Deep Tech Startup Policy, the India Deep Tech Alliance and the Research, Development & Innovation scheme – are all positioning India as a centre for research and advanced technology development. The sheer breadth of opportunity in India is astonishing, with aerospace and defence, electronics, quantum technologies, advanced manufacturing, automotive and electric mobility, cleantech, medtech and life sciences all seeking the latest innovations from global partners. If you’re not considering India yet, you should be.

Navigating complexity: from challenge to competitive advantage

Despite the clear opportunities, expanding into Asia still comes with challenges posed by the individual cultural and commercial dynamics, regulatory frameworks and procurement processes of its various markets. Distance, language and time zones also create friction. However, today, these obstacles are far from insurmountable – and, in many cases, can even become a source of competitive advantage for companies that navigate them well. If you’re eyeing up potential opportunities for your business in Asia, my advice is:

• Focus is key. Rather than trying to tackle multiple markets at once, identify where your products and capabilities are best aligned and start there.
• Invest in local understanding. This includes regulatory requirements, decision-making cultures and customer expectations.
• Seek local expertise. Work with organisations or individuals who bring deep market knowledge and cultural insight.
• Prioritise relationships. Strong local networks are essential to unlocking opportunities.
• Choose the right entry model. Partnerships, joint ventures and local distributors can all play a role, particularly in the early stages.

And remember – you need to be patient. Asia is not a quick-win region. Those who take a long-term view are far more likely to build sustainable, scalable businesses.

A strategic shift that cannot be ignored

UK entrepreneurs can no longer afford to consign expansion in Asia to the ‘too difficult’ box. The region offers a powerful combination of fast-growing markets, world-class talent and significant commercial opportunities. If you’re willing to invest the time and effort, the rewards can be substantial. And, if you move early, you’ll not only access new customers and revenue streams – you’ll secure strategic advantages that few can afford to ignore. What are you waiting for?