ASEAN Economic Issues (February 2025)Trade & Investment Unit, ASEAN-Korea Centre

1. Korea’s Trade to ASEAN Countries (as of February 2025)

Unit: 1 million (USD)

Reference: Korea Customs Service

2. World Economic Forum Highlights on ASEAN (summarized by Korea Institute for International Economic Policy) (Link)

▷ Strengthen ASEAN’s Peace-based Economic Development Model and Regional Connectivity

– ASEAN presents an economic development model based on peace and cooperation

Pham Minh Chính, Prime Minister of Viet Nam, who spoke in the ASEAN session at the World Economic Forum’s Annual Meeting in Davos, alongside his Malaysian counterpart, Anwar Ibrahim encapsulated what is at the heart of ASEAN – the trading and political bloc of South-East Asia – peace, security, collaboration and mutual respect. In particular, ASEAN has long been an attractive investment bloc because of its huge, rapidly developing markets, young, digitally-savvy populations, wealth of natural resources, and a strong cultural identity.

– ASEAN strengthens energy and connectivity in the region and pursues an inclusive approach to tech

Anwar Ibrahim, Prime Minister of Malaysia, announced that the focus will be on an ASEAN Energy Grid, alternative technology, and the undersea cable from Sarawak. He dispelled the idea of competition, particularly in areas like AI, insisting that ASEAN leaders take an inclusive approach, and tend to engage and formulate a policy that will benefit one another.

▷ ASEAN Member States’ key economic strategies for 2025

– Vietnam aims to accelerate technology innovation and address global issues like climate change

Pham Minh Chính, Prime Minister of Viet Nam, said the Vietnamese government hopes to inaugurate a National Data Center by June 2025, and the development of science, technology, innovation, and digital transformation will provide a strong boost for investment in research and development in Vietnam. Vietnam is also focusing on ensuring intellectual property rights to create a fair legal framework for foreign investors in the technology sector. In fact, Vietnam has made its efforts to become an important partner for research and development cooperation and an attractive investment destination for major tech groups like Samsung and NVIDIA with its goal of becoming a high-income, developed economy by 2045.

One example is the development of one million hectares of high-quality, low-emission rice, a project that supports global food security while promoting green growth. The Prime Minister said Vietnam is working hard to improve institutional frameworks to unlock resources for renewable energy development and has initiated a nuclear power project to ensure clean energy supply for national development.

– Philippines announces plans to attract investment by global tech companies

The Philippines announced plans to attract investment from global tech companies during the forum. In fact, the Philippines is actively promoting to the global financial technology companies such as Coinbase in the US and Revolut in the UK, and planning to explore more partnership opportunities with ING in the Netherlands and HCLSoftware in India to be more competitive in the field of artificial intelligence and digital transformation. In particular, the CREATE MORE* initiative is establishing an institutional foundation for attracting investment by extending the duration of tax incentives and simplifying tax process.

* CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy): Philippine Government’s initiative aimed at attracting new investment and supporting existing businesses for national economic growth through corporate tax reform and tax incentives.

– Indonesia aims to accelerate renewable energy transition

Febrian Alphyanto Ruddyard, the permanent representative of the Republic of Indonesia to the United Nations, said that the country possessed large renewable energy potentials of up to an estimated 3,700 gigawatts (GW) and came up with a lot of incentives, including a tax holiday or allowance up to 25 percent. In addition, President Prabowo Subianto vowed that his administration would produce over 75 GW of additional renewable energy and phase out all coal and other fossil fuel power plants within 15 years.

– Thailand discussed potential investment with global companies and signed a free trade agreement with the European Free Trade Association (EFTA)

Minister Paetongtarn Shinawatra met with country leaders including DP World, Nestlé, Coca-Cola, Bayer AG, and AstraZeneca to boost Thailand’s recognition and those companies showed interest to invest in Thailand. In addition, the European Free Trade Association (EFTA) and the Kingdom of Thailand signed a comprehensive Free Trade Agreement (FTA) on the margins of the World Economic Forum Annual Meeting in Davos on 23 January 2025, and this signing would offer an opportunity for Thailand to export goods to European countries. Paetongtarn asserted that this WEF had helped boost confidence that Thailand was ready to be a partner for multinational companies in terms of strategic location and food security. She affirmed that the Thai government has policies to promote a digital economy, technology, human resource development, and will also promote Thai soft power as a new economic engine with Muay Thai, Thai food and textiles.

– Singapore discussed cooperation and advancements with the Gulf Cooperation Council (GCC)

Deputy Prime Minister of Singapore, Gan Kim Yong, met with the Secretary General of the GCC, Jasem Albudaiwi. The two leaders focused on enhancing collaboration between GCC member states and Singapore in various fields, including economic, commercial, cultural, and scientific domains. The two leaders emphasized the importance of exchanging expertise and knowledge to foster innovation and shared progress. A significant portion of their discussion centered on the free trade agreement signed between the GCC and Singapore in 2008. The agreement has played a pivotal role in strengthening strategic ties in trade, investment, and commerce.

3. ASEAN Peoples’ Perceptions Survey 2024 (published by Foreign Policy Community of Indonesia) (Link)

• Foreign Policy Community of Indonesia (FPCI), a non-partisan, non-politic and independent foreign policy organization in Indonesia, recently released ‘ASEAN People’s Perceptions Survey 2024’ to assess the perceptions over 9 ASEAN dialogue partners, including Korea, Japan, China, and the United States. 
• In 2020, the FPCI started with its first regional survey titled the ASEAN-China Survey, and the 2023’s edition focused on the 4 ASEAN dialogue Partners, namely, China, India, Japan and the US. In 2024, the survey added another five dialogue partners, Australia, the European Union, Russia, Korea, and the United Kingdom.

▷ South Korea

• South Korea had relatively low visibility in the region, however in terms of soft power, it ranked second after China. The report pointed out for South Korea to further expand its economic and diplomatic visibility.
• Japan, Australia and South Korea ranked Top 3 across various categories including respect for national sovereignty, goodwill, and equal treatment of ASEAN. Regarding the region’s strongest wielders of soft power, China ranked highest at 26.04%, followed by Korea at 19.58%.
• ASEAN viewed Korea (5.92%) as a less important partner than China (31.95%) and Japan (18.39%).
• According to the report, Korea can enhance its visibility in the region by leveraging the region’s favorable perceptions of its involvement and the strength of its soft power. Initiatives such as expanding cultural exchanges, enhancing people-to-people connectivity, and deepening economic cooperation can help solidify its role as a trusted and relevant partner of ASEAN.

▷ Japan

• The survey indicated that Japan continued to be the most positively regarded country by respondents across various categories, including respect for national sovereignty (69.82%), goodwill (69.13%), and equal treatment of ASEAN (59.17%). However, China topped the table solidifying its strategic role in terms of the most relevant partner for the future of ASEAN, followed by Japan.

▷ China

• While China secured the top position (31.95%) as for the most relevant partner for the future of ASEAN, China also led the category of the least trustworthy and reliable partner when it comes to the non-compliant with international law. (33.28% for China, 21.25% for Russia)

▷ United States

• The U.S. was seen as a reliable partner in times of crisis with a score of 23.08%, followed by China at 15.34%. However, its presence in the region raised concerns, particularly regarding its hegemonic ambitions and potential interference in the region’s political affairs.

ASEAN Economic Issues (February 2025)

1. 2025년 1월 수출입 동향

단위: 백만 불

▷ 한국

• 소프트파워 부분을 제외하고는 전반적으로 낮은 수준을 기록했으며, 동 보고서는 한국이 경제·외교적 가시성(visibility)을 더욱 확대할 필요성을 지적함.
• 한국이 일본, 호주와 함께 아세안의 주권과 통합을 존중하는 상위 3순위 국가로 인식되며, 소프트파워 영향력은 중국(26.04%)에 이어 두 번째(19.58%) 위치함.
• 아세안의 미래 파트너로서의 중요성은 중국 및 일본보다 낮게 평가 (중국 31.95%, 일본 18.39%, 한국 5.92%)
• 한편, 동 보고서는 한국이 소프트파워와 역내 우호적인 인식을 지렛대로 가시성을 제고할 수 있다고 언급하며, 문화 교류, 인적 연결, 경제협력 활성화 등을 통해 신뢰받는 아세안 파트너로서 역할을 견고히 할 수 있을 것이라고 제언함.

▷ 일본

• 일본은 아세안 국가 주권 존중(69.82%), 선의(69.13%), 아세안에 대한 동등한 대우(59.17%) 등 다양한 범주에서 응답자들이 가장 긍정적으로 평가하는 국가로 인식되는 한편, 미래 아세안의 핵심 파트너 항목에 있어서는 중국에 이어 2위를 기록함.

▷ 중국

• 경제적으로 가장 중요한 파트너(31.95%)로 평가되었으나, 국제법 준수 및 신뢰도 면에서는 부정적인 평가가 다수 (국제법 비준수국가: 중국 33.28%, 러시아 21.25%)

▷ 미국

• 신뢰도는 낮지만 위기 상황 시 가장 의지할 수 있는 국가로 평가 (미국 23.08%, 중국15.34%)