# ASEAN Requires Comprehensive Strategies Beyond Trade Deals to Strengthen Integration

- Link: https://www.thailand-business-news.com/asean/253604-asean-requires-comprehensive-strategies-beyond-trade-deals-to-strengthen-integration
- Published: 2025-10-26T19:55:09+07:00
- Author: Asean News

**At the 47th ASEAN Summit, leaders will address trade fragmentation by enhancing
regional integration through strategic investment, leveraging global value chains,
and promoting intra-regional investment to strengthen resilience.**

## Urgent Need for Integration

As global leaders gather in Kuala Lumpur for the 47th ASEAN Summit, escalating tariffs
and geopolitical tensions highlight the need for stronger regional integration. 
Despite years of trade liberalization, ASEAN’s intra-regional trade remains stagnant
at just over 20%, well below the ASEAN+3 and EU levels. The focus has primarily 
been on external markets, exposing vulnerabilities. Although tariffs have nearly
vanished, mere trade policies aren’t enough for deeper integration, especially when
ASEAN’s economic diversity limits internal complementarities.

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## Challenges and Opportunities

ASEAN economies vary widely, from advanced hubs to industrializing nations, affecting
internal trade dynamics. Intra-ASEAN foreign direct investment (FDI) remains low
compared to potentials, crucial for building relationships and transferring technology.
The path forward involves complementing liberalization with investment strategies.
Leveraging global value chains, especially with China, Japan, and Korea, can enhance
domestic capabilities. Emphasizing high-spillover FDI in technology sectors and 
improving local supplier linkages will be vital.

## Path to Transformation

Facilitating intra-regional investments is crucial, promoting ASEAN firms’ internationalization
to create production networks. This shift from being investment recipients to regional
investors demands targeted policies, including financial integration and regional
capital markets. A more integrated ASEAN would benefit Plus-3 economies through 
increased demand and resilience. With successful efforts, intra-ASEAN trade could
reach up to 40% by 2050, reshaping its economic landscape. Leaders must prioritize
transformation through industrial upgrades and regional investments to mitigate 
global disruptions.

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Source: [ASEAN Needs More Than Trade Deals to Deepen Integration – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/asean-needs-more-than-trade-deals-to-deepen-integration)