PHNOM PENH: Asean aims to become the world’s fourth-largest economy by 2030. The region is strengthening trade, investment, and economic partnerships amid intensifying global competition.
Speaking at the “Asean Secretary-General’s Vision Forum 2025” in Phnom Penh on March 7, current Asean secretary-general Kao Kim Hourn highlighted the region’s economic progress and outlined the challenges ahead.
“Asean is already among the world’s top five economies. Based on current growth projections, we are on track to climb to the top four by 2030,” he explained.
“To achieve this, the economic ministers of our member nations are working to enhance trade agreements, attract investment and strengthen our economic integration,” he added.
In 2023, Asean recorded a trade volume of US$3.5 trillion, with 21.5 per cent of transactions occurring within the bloc.
Kim Hourn also noted that the region maintains strong trade relationships with key partners such as China, Japan, South Korea, India, Australia and New Zealand.
“The US is the first source of investment in Asean, while trade is second only to China,” Kim Hourn noted, adding that their positions are reversed in trade volume.
Asean has seen a surge in investment from China, with direct investment reaching US$25.12 billion in 2023, a 34.7 per cent increase year-on-year.
By mid-2024, China’s cumulative bilateral investment with Asean had surpassed US$400 billion, further deepening economic ties between the two regions.
Asean economic ministers are actively working to expand trade and investment agreements under the Asean Economic Community (AEC) framework, which aims to create a single market and production base.
“They are keen to increase the number of trade and investment agreements among the ten member states, in response to the Asean Charter,” said Kim Hourn.
FDI into the bloc reached US$240 billion in 2023, and all members are striving to maintain this upward trajectory by creating more investor-friendly policies and reinforcing regional economic stability.
Cambodia’s international trade maintained strong growth in January 2025, exceeding US$5 billion – a nearly 25 per cent increase from the same month in 2024 – with exports accounting for approximately 45 per cent of the total trade volume.
According to data released by the General Department of Customs and Excise on February 10, Cambodia’s total international trade reached US$5.057 billion, a 24.6 per cent rise from the US$4.057 billion reported in January 2024.
Exports were valued at US$2.306 billion, up 17.3 per cent, while imports rose 31.6 per cent, to US$2.750 billion. As a result, the trade deficit widened to US$444 million, compared to the US$123 million of January 2024.
According to the Ministry of Economy and Finance, by 2025, the economy will have grown by 6.3 per cent of gross domestic product (GDP), with a GDP per capita of US$2,924. In 2024, GDP per capita was recorded at US$2,713.
This growth is driven by the industrial sector, which is expected to grow by 8.6 per cent, followed by the services sector, at 5.6 per cent and the agriculture sector by 1.1 per cent.
Phan Phalla, economy ministry secretary of state, explained that according to the World Bank, a country qualifies as an upper-middle-income nation only once GDP per capita exceeds US$4,000.
Beyond trade and investment, Asean is also leveraging the revival of tourism as a pillar for economic growth. Before the Covid-19 pandemic, Asean welcomed 140 million tourists in 2019.
“After a sharp decline during the global health crisis, visitor numbers rebounded to nearly 100 million in 2023 and further climbed to 123 million in 2024. We expect this year’s figure to reach the level of 2019,” said Kim Hourn.
As Asean positions itself for sustained economic expansion, policymakers are prioritising infrastructure development, digital transformation and sustainable growth strategies.
Based on reporting by the tourism ministry, 2024 international arrival numbers topped pre-pandemic figures.
In 2019, Cambodia welcomed approximately 6.6 million international visitors, while in 2024, 6.7 million were recorded.
By 2024, international arrivals had grown to 6.7 million, although lengths of stay were not recorded.
In 2019, Angkor Enterprise, which administers ticket sales at the Kingdom’s iconic Angkor Archaeological Park, earned more than US$80.7 million.
In 2024, despite international arrivals surpassing the 2019 figures, the enterprise earned just US$47.83 million. – The Phnom Penh Post/ANN