SME

By Ee-Hui Tan | March 19, 2025

As intra-Asia trade reshapes global commerce, Vietnam is emerging as a critical hub, connecting Southeast Asia’s thriving production networks to international markets.

• Intra-Asia trade is booming, making up about 60% of Asia’s total exports.
• Southeast Asia is a key trade driver. One market central to growth is Vietnam, fueling global commerce through manufacturing, booming logistics, and rising consumer demand.

Logistics, trade agreements, and technology are accelerating regional trade, improving supply chains, and boosting business competitiveness.

Intra-Asia trade is emerging as one of the fastest-growing trade corridors in the world. As businesses capitalize on the region’s economic integration and deepening ties, intra-Asia trade now accounts for a significant share of global commerce. 

Intra-Asia trade: A catalyst for transformation

In 2024, intra-Asia trade accounted for nearly 60% of Asia's total exports, underscoring the region's deepening economic integration. ASEAN has overtaken the EU as China’s largest trading partner, surpassing both the EU and the United States. Bilateral trade between China and ASEAN reached USD 962.98 billion in 2024 – a 9% year-on-year increase.

This remarkable growth reflects more than just numbers. It signals a strategic shift in global supply chains. As businesses diversify their operations to mitigate risks, Southeast Asia has become a critical hub for production and trade, redefining how goods flow across the region and beyond.

Southeast Asia: The driving force of regional trade

Southeast Asia is not just a participant in the intra-Asia trade corridor; it’s a driving force. With its dual role as a production powerhouse and a thriving consumer market, the region is shaping global trade flows. 

The numbers speak for themselves. In 2022, the combined Gross Domestic Product (GDP) of ASEAN was about USD 3.67 trillion. This economic vitality is propelled by a rapidly expanding middle class. Projections indicate that by 2030, 65% of ASEAN's population will belong to the middle class, significantly boosting consumer demand.  

Southeast Asia is the cornerstone of the intra-Asia trade corridor, with potential for further growth. Countries like Indonesia, Thailand, Malaysia, and Vietnam stand out as emerging production hubs, offering competitive advantages like low labor costs, skilled workforces, and investment-friendly policies. 

Free trade agreements like the ASEAN-China Free Trade Area (ACFTA) and Regional Comprehensive Economic Partnership (RCEP) have also reduced tariffs and streamlined cross-border commerce, enabling businesses to navigate regional markets more seamlessly. These agreements bolster Southeast Asia’s position as a critical link in the regional supply chain, fostering an environment of growth and resilience.

Vietnam: The gateway to regional and global trade

At the heart of Southeast Asia, Vietnam exemplifies the region’s potential as a critical node in global supply chains. With its strategic location, robust economic growth, and progressive trade policies, Vietnam connects intra-Asia trade to Europe and beyond, positioning it as a gateway for both regional and global commerce. 

Amid this growth, connectivity has emerged as the cornerstone of Vietnam’s integration into the broader trade ecosystem. Effective logistics and transportation networks are essential for facilitating the seamless flow of goods, particularly as Vietnam takes on a greater role in intra-Asia trade.

At FedEx, we’re behind businesses every step of the way. We recently launched a new flight route connecting our Asia Pacific hub in Guangzhou, China, to Bangalore, India, the United Arab Emirates, and onward to Liege and Paris in Europe. Operating five times a week, it provides businesses with enhanced capacity and flexibility, especially during the holiday peak season. 

This enhancement complements our nine weekly flights from Ho Chi Minh City to other markets in Asia, the Middle East, Africa and Europe. With faster transit times, we’re advancing our air network to support the growth of Vietnamese businesses.

These investments go beyond logistics. We’re committed to enabling Vietnamese enterprises to get the upper hand in an increasingly interconnected economy. 

By offering faster and more reliable access to international markets, FedEx is helping Vietnamese businesses unlock their full potential in a time of rapid trade growth.

Looking ahead, Vietnam’s role as a logistics and trade hub will continue to grow, driven by increasing demand for air cargo transportation, particularly from the high-tech, semiconductor, textile and garment industries, which require more shipping capacity and faster transit times.

The future of intra-Asia trade

Intra-Asia trade is more than a regional phenomenon. It is reshaping global commerce. Southeast Asia, led by dynamic markets like Vietnam, will continue to drive this transformation, creating unprecedented opportunities for businesses.

However, unlocking these opportunities requires more than just proximity or policies. Technology is the ultimate game-changer, with advancements in digital platforms, AI, and blockchain redefining supply chain efficiency and transparency. At the same time, investment in infrastructure, both physical and digital, is essential to support growing trade volumes and build resilience against future disruptions.