At the end of May, ASEAN leaders adopted the ASEAN Economic Community Strategic Plan 2026–2030. One of the strategic goals of the plan is to realise an integrated single market and production base with new sources of competitiveness, in which bolstering intra-ASEAN trade in goods counts most, requiring successfully integrating emerging and advanced technologies into regional trade networks while strategically revisiting competitive sectors.

This includes embracing trade-related new and emerging issues, advancing sustainable development objectives such as environmental sustainability, supporting the expanding number of micro- and small- and medium-sized enterprises, and harnessing rapid technological transformation.

“This will strengthen regional procedures and practices in minimising negative impacts of barrier elements in non-tariff measures, enhance the use of available mechanisms to resolve trade disputes, and intensify efforts to enhance efficiency of customs processes across the region,” stated the plan, revealed earlier in June.

Currently, non-tariff barriers are significant obstacles to trade within ASEAN, often as impactful as tariffs. They cover many measures restricting trade without directly imposing tariffs, including regulations, standards, and other trade-related policies.

According to the ASEAN Secretariat, many other measures are also being advanced, such as enhancing intra-ASEAN trade through effective implementation of the ASEAN Trade in Goods Agreement (ATIGA) and its subsequent upgrades, taking into account new and emerging issues relevant to post-2025 environment.

“It is necessary to strengthen trade facilitation by enhancing transparency mechanisms, procedures, and practices, as well as minimising the negative impacts of the barrier elements in non-tariff measures,” the Secretariat stated.

Export restrictions continue to be a challenge for advancing such trade, which has remained largely stagnant for many years. Intra-ASEAN trade currently makes up just 21.2 per cent of the region’s total trade last year, falling far behind other blocs like the EU, which sees an intra-trade level of 60 per cent.

At present, one of the largest priorities of ASEAN is to conclude negotiations for the ATIGA upgrade. The second protocol to upgrade the ATIGA is expected to be signed in November during the 47th ASEAN Summit organised in Malaysia.

The upgrade is also expected to help the bloc woo more investment. The ASEAN Secretariat reported that in 2023, ASEAN recorded $230 billion in foreign direct investment inflows, with Singapore ($159.6 billion), Indonesia ($21.6 billion), and Vietnam ($18.5 billion) as top destinations. Strengthening regional supply chains and easing business regulations will further promote ASEAN’s attractiveness to investors.

Leaders also aim to foster fair markets in the region in order to enable businesses to compete on a level playing field, within a transparent, equitable, and conducive ecosystem.

“Fostering fair markets not only promotes entrepreneurship and enhances innovation, but also attracts foreign investment and improves the region’s global competitiveness and resilience,” said a report on the strategic plan. “This requires robust competition regimes and effective enforcement which will cultivate a competitive culture and achieve sustainable, inclusive, and resilient growth.”

In ASEAN’s vision, fair competition benefits various stakeholders across member states, leading to lower prices and improved product quality. “To effectively enforce laws, competition authorities must also cooperate and coordinate to instil trust and stability in regional markets. Strong national competition policies and laws are critical for creating a robust regional market, ensuring that competition principles are seamlessly integrated into regional and domestic economic policies,” the report read.

Source: Vietnam Investment Review