The Association of Southeast Asian Nations (ASEAN) is the most promising region for economic opportunities for European companies for the third consecutive year, a survey showed Wednesday.
The EU-ASEAN Business Sentiment Survey for 2025 found that 73 percent of European companies surveyed said the region has become more important to their global revenues.
The EU-ASEAN Business Council (EU-ABC) noted that businesses are expected to expand their operations in key ASEAN markets, including Vietnam, Indonesia, Malaysia and Thailand.
However, business confidence was tempered by concerns over global trade uncertainty, with only 71 percent of respondents expecting an increase in trade and investment within the region over the next five years. That figure is a significant drop from 86 percent in the previous year’s survey.
Frustration over supply chain efficiency was also a major concern, with 77 percent of respondents citing too many obstacles. Of those, 58 percent said non-tariff barriers are on the rise.
“ASEAN continues to be viewed as the most promising region for growth, but at the same time, European businesses report frustration at the slow pace of regional integration,” said Chris Humphrey, executive director of the EU-ABC.
“Non-tariff measures, regulatory inconsistencies, and persistent bottlenecks continue to add cost and complexity, limiting the full benefits of ASEAN’s market potential,” he said.
Humphrey warned that ASEAN risks falling short of its ambition to function as a single, integrated market unless greater effort is made to address these barriers.
He said a region-to-region free trade agreement (FTA) with the European Union is now seen as a “strategic necessity” to keep the EU competitive.
