Exclusive | Hong Kong’s Gaw Capital bets on ‘China plus one’ opportunities in Vietnam and Mexico, AI-boom driven US office market growth to offset mainland woes
- Firm to invest in countries that are the biggest beneficiaries of ‘China plus one’ strategy, founder Goodwin Gaw says
- There will be a big wave of office demand from AI companies in the US
Gaw Capital Partners, one of Hong Kong’s biggest real estate private-fund management firms, is focusing on logistics in Vietnam and Mexico, as well as the artificial intelligence (AI) sector bailing out distressed office assets in the United States, amid challenges to an economic recovery in mainland China.
The US-China trade tensions could continue to be an issue for the next 10 to 15 years, said Goodwin Gaw, the firm’s founder and managing principal. “I want to invest in countries that are the biggest beneficiaries of ‘China plus one’ [strategy],” Gaw said.
China plus one seeks diversification for manufacturers by reducing reliance on the mainland as a production base. The world’s second-largest economy is also the largest manufacturer globally, with the most extensive supply chains.
Vietnam, India and Mexico are seen as countries most likely to capture business from China.
“Vietnam and Mexico are easier as these two countries welcome [Chinese firms] setting up production facilities,” Gaw said. “But India doesn’t like domestic investment from China.
“The biggest beneficiaries will be those who allow Chinese factories to open up and hire local labour to produce the same goods for foreign clients.”
