ASEAN is positioning itself to become the world’s fourth-largest economy by 2030, driven by strengthened trade and investment partnerships, robust economic integration, and strategic development initiatives. The region’s rise reflects not only its economic strength but also the growing influence of its member nations on the global stage.
At the recent “ASEAN Secretary-General’s Vision Forum 2025” held in Phnom Penh, it was reaffirmed that ASEAN is already among the world’s top five economies. Based on current growth trajectories, the region is on track to climb to fourth place within the next five years. This progress underscores the success of ASEAN’s economic policies and the collective determination of its member states to build a more prosperous and connected region.
Strengthening Economic Foundations
ASEAN’s economic performance in recent years highlights the success of its integration strategy and trade partnerships. In 2023, the region recorded a trade volume of $3.5 trillion, with over 21 per cent of transactions occurring within the bloc. This strong intra-regional trade reflects the effectiveness of ASEAN’s economic agreements and the deepening cooperation between its member states.
ASEAN’s strategic partnerships with key global players such as China, Japan, South Korea, India, Australia and New Zealand have further strengthened its economic position. The United States remains the leading source of foreign direct investment (FDI) in ASEAN, while China is the region’s largest trade partner. In 2023, FDI into ASEAN reached an impressive $240 billion, with Chinese investment alone amounting to $25.12 billion — a 34.7 per cent increase from the previous year. By mid-2024, China’s cumulative bilateral investment with ASEAN had exceeded $400 billion, reinforcing the region’s significance in global trade and investment networks.
Economic ministers from ASEAN’s 10 member states are working to deepen trade and investment ties under the ASEAN Economic Community (AEC) framework. The AEC aims to create a single market and production base, harmonising economic policies and removing barriers to trade and investment. Expanding the number of trade and investment agreements within ASEAN will not only enhance regional stability but also make the region more attractive to global investors.
Cambodia’s Economic Growth Reflects Regional Momentum
Cambodia’s recent trade and economic performance reflects the broader growth trajectory of ASEAN. In January 2025, Cambodia’s international trade exceeded $5 billion — a remarkable 24.6 per cent increase from January 2024. Exports accounted for approximately 45 per cent of the total trade volume, growing by 17.3 per cent year-on-year. Imports also grew significantly, rising by 31.6 per cent to $2.750 billion.
This strong trade performance reflects the success of Cambodia’s open-market policies and its growing role within the regional supply chain. Although the trade deficit widened to $444 million from $123 million in January 2024, the increase in trade activity points to strong underlying economic momentum.
Cambodia’s economic outlook remains positive, with GDP growth projected at 6.3 per cent in 2025. GDP per capita is expected to reach $2,924, up from $2,713 in 2024. The industrial sector is driving this growth, with an anticipated expansion of 8.6 per cent, followed by the services sector at 5.6 per cent and agriculture at 1.1 per cent. This diversified growth highlights Cambodia’s ability to balance industrial expansion with the development of its services and agricultural sectors.
Tourism as a Catalyst for Growth
Tourism remains a key pillar of ASEAN’s economic strategy. Before the COVID-19 pandemic, ASEAN welcomed approximately 140 million tourists in 2019. Although the pandemic caused a steep decline in visitor numbers, the recovery has been impressive.
In 2023, tourist arrivals rebounded to nearly 100 million, rising to 123 million in 2024. ASEAN is now on track to return to pre-pandemic levels by the end of 2025. The strong recovery in tourism is driving growth across related sectors, including hospitality, transport, and retail.
Cambodia’s tourism sector reflects this broader trend. The country welcomed approximately 6.6 million international visitors in 2019. By 2024, this figure had increased to 6.7 million, surpassing pre-pandemic levels. However, revenue from key tourist sites has yet to fully recover. Angkor Enterprise, which manages ticket sales at the iconic Angkor Archaeological Park, generated $47.83 million in 2024, compared to over $80.7 million in 2019.
This suggests that while visitor numbers have recovered, increasing tourist spending and enhancing visitor experiences will be essential to maximising tourism’s economic impact. Investment in infrastructure, better promotion of cultural assets, and the development of eco-tourism initiatives are expected to play a key role in sustaining growth in the tourism sector.
Navigating Challenges and Embracing Opportunities
ASEAN’s economic success has not come without challenges. Global economic uncertainties, supply chain disruptions, and geopolitical tensions continue to create headwinds for the region. However, ASEAN’s resilience and adaptability have enabled it to maintain a stable growth trajectory.
Policymakers are focused on strengthening the region’s economic foundations through infrastructure development, digital transformation, and sustainable growth strategies. Investment in renewable energy, smart infrastructure, and advanced manufacturing is expected to drive long-term economic resilience.
Digital transformation is emerging as a major growth driver for ASEAN. The rapid adoption of digital technologies across e-commerce, financial services, and telecommunications is creating new business opportunities and enhancing connectivity between member states. This digital shift is expected to improve productivity, reduce costs, and open new markets for ASEAN businesses.
Sustainability is also at the core of ASEAN’s economic strategy. The transition to renewable energy, promotion of sustainable agriculture, and development of climate-resilient infrastructure are key priorities for the region. ASEAN’s ability to balance economic growth with environmental responsibility will be crucial in maintaining its long-term competitive advantage.
A Unified Vision for Economic Leadership
ASEAN’s ambition to become the world’s fourth-largest economy by 2030 reflects its growing economic influence and strategic vision. The region’s success will be built on the foundations of trade and investment integration, economic diversification, and regional cooperation.
By expanding trade agreements, attracting investment, and embracing digital and sustainable development, ASEAN is well-positioned to navigate global challenges and sustain long-term growth. The region’s collective strength, dynamic markets, and strategic partnerships will be instrumental in securing its place among the world’s leading economies.
ASEAN’s journey towards becoming a global economic leader is not only an example to the strength of its member states but also a reflection of the region’s ability to adapt, innovate, and thrive in an increasingly competitive world.
