Strategic Analysis and Synergy Research of BYD’s Greenfield Investments in Southeast Asia

Abstract

This paper focuses on BYD’s greenfield investment strategy in Southeast Asia. Using the OLI (Operational Licensing Inequality) theory of international production, it deeply analyzes the underlying logic behind the company’s investment decisions and explores the driving and synergistic role played by the tourism industry in this process. The results indicate that BYD ultimately chose the greenfield investment model, leveraging its advantages in ownership, location, and internalization. Southeast Asia’s developed tourism industry, in terms of consumer education, improved infrastructure, and an optimized policy environment, provided key support for BYD’s local market expansion. Together, these two factors fostered a virtuous cycle of “industrial investment - green transformation - tourism upgrading.” Furthermore, this paper identifies BYD’s current internal and external challenges and potential risks, and proposes corresponding practical recommendations and future research directions. The paper hopes to provide theoretical support and practical guidance for Chinese new energy vehicle companies in expanding into overseas markets.