Successful
Collaboration Initiatives

Discover the successful collaboration initiatives that turned ASEAN into a global economic powerhouse

ASEAN FREE Trade Area (AFTA)

The ASEAN Free Trade Area (AFTA) was created to enhance regional competitiveness by eliminating tariffs and reducing trade barriers among ASEAN member states, increasing economic integration.

Tariff reductions were implemented through the Common Effective Preferential Tariff (SEPT) scheme, gradually eliminating tariff duties on most goods traded within ASEAN.

The AFTA boosted intra-ASEAN trade, which grew from

19%

of total ASEAN trade in 1993 to over

24%

by 2024.

ASEAN Economic Community Blueprint 2025

The ASEAN Economic Community (AEC) Blueprint 2025 has been instrumental in improving the investment policy environment across the ASEAN region. It has done so through:

the implementation of regional agreements and frameworks aimed at enhancing economic integration and stimulating growth in strategic sectors;

numerous national investment policy measures aimed at promoting and facilitating FDI, and;

agreements and partnerships with third countries

Key regional policy developments affecting FDI have included the ASEAN Comprehensive Investment Agreement (ACIA), the ASEAN Trade in Goods Agreement (ATIGA), the ASEAN Framework Agreement on Services (AFAS) and the ASEAN Trade in Services Agreement (ATISA), which collectively foster a more integrated and efficient regional market.

ASEAN’s share of global FDI increased significantly, from an average 6% during AEC 2015 to 11% during AEC 2025. Over the past three years (2021-2023), ASEAN attracted 15% of world inflows.

Investors and business associations acknowledge that AEC 2025 has significantly contributed to enhancing the investment climate.

Under the AEC Blueprint 2025, ASEAN has witnessed robust growth in FDI. Annual FDI inflows averaged US$170 billion during the AEC 2025 period (2016-2023), almost double the US$92 billion annual average seen during the previous AEC period (2006-2015). Annual average FDI inflows in the past three years (2021-2023) rose to US$220 billion. The rapid rise in inflows pushed FDI stock in the region to US$3.9 trillion in 2023, from US$1.7 trillion in 2015.