The recent analysis of ASEAN's export dynamics reveals significant disparities among its member countries as they continue to recover from the COVID-19 pandemic. On March 18, 2025, the column "Ruam Duai Chuai Kid" discussed how the export sector, particularly concerning goods and services, is faring well overall, yet the performance is not uniform across the region.
At the heart of the conversation are two structural differences impacting the recovery: the type of products being produced for current and future demand, and the balance of export structures across goods and service sectors. The discussion highlights how these factors are pivotal for determining each country’s resilience and adaptability to the shifting global market.
One of the most pressing influences has been the rise of digital technology, which has dramatically increased the demand for electronic products. This trend presents significant opportunities for ASEAN, which serves as one of the largest production and supply chain hubs for electronics worldwide. Countries like Singapore, Malaysia, and Vietnam are increasingly important players, particularly as foreign direct investments (FDI) pour in, enhancing their capacities to meet global demands.
Singapore, for example, has become the leader of electronics exports, capturing over 50% of the total value of electronics leaving ASEAN. This success is closely tied to Malaysia and Vietnam, which have also seen upsides thanks to foreign investments and improved industrial capabilities.
According to the analysis, Thailand has managed to benefit from this electronics boom as well, even if on a smaller scale. With a significant uptick of over 25% increase in FDI reported for 2023 compared to 2019, Thailand’s focus on components related to data centers—such as telecommunications equipment, computers, and hard disk drives (HDD)—is aimed at capturing its share of the electronics market. Nevertheless, these electronics components still account for less than 10% of Thailand's total exports.
Shifting gears to the service sector, Singapore reigns supreme as it commands 67% of the total service exports from ASEAN, particularly excelling with its modern services linked to high-end information technology, such as consulting and financial services. On the other hand, countries like Thailand and Malaysia still heavily rely on traditional services, which limits their growth potential. The lower expansion rates reflected this reliance on tourism and other traditional forms of service, failing to keep pace with the advanced service economies.
Addressing the future, the need for robustness amid unpredictability—referred to as resilience—has emerged as one of the key strategies for sustaining export growth. The analysis points out the economic structures of various countries, with those demonstrating balanced integration across both production and services recovering more rapidly following economic shocks. For example, Thailand boasts diverse and well-balanced export structures; this diversification has allowed it to navigate crises without severe impacts, unlike some of its neighbors who have focused primarily on electronics.
It is revealed through the export experiences of these countries, especially during the post-COVID recovery phase, underscored by service exports from Thailand, which dropped steeply by 61.8% during 2020, compared to Singapore's modest decrease of only 2.6%. Such stark differences highlight the need for comprehensive strategies to mitigate risks and encourage sustainable growth.
The discussion also turns its focus on Vietnam, particularly the OCOP (One Commune One Product) program spearheaded by Ninh Binh province. The local government is making significant strides by promoting OCOP products, which are increasingly recognized both domestically and internationally. So far, there are 209 OCOP products listed, with 69 earning a 4-star rating. These products primarily revolve around agriculture and rural development, adhering to stringent standards like VietGap for ensuring quality and trust.
Pham Tien Duat, Deputy Director of Vu Gia Medicinal Materials Company, emphasized the potential of products like "Cuc Phuong Golden Flower Tea," which was recognized for its quality, asserting, "Cuc Phuong Golden Flower Tea received 4-star OCOP rating and recognition as typical rural industrial product."
Such recognition fosters confidence among consumers and opens doors for greater export opportunities, enhancing the local economy’s stability. The province is determined to streamline the production of OCOP products to meet market demands both locally and globally, with reported expectations for the handicraft export value to reach 4.1 million USD by 2024.
Notably, Ms. Thi Lan Anh, Deputy Director of the Department of Agriculture and Rural Development, recognizes the importance of enhancing product quality and promoting brand building, noting, "The importance of consolidative strategies to improve product quality."
It is evident from the current developments and export trajectories of ASEAN countries like Singapore, Malaysia, Thailand, and Vietnam, particularly the successful OCOP initiative, how each nation must embrace innovation and adaptability to thrive sustainably.
Governments and businesses alike need to bolster their support for diversifying export goods and services, ensuring stability against future challenges as they emerge. This balanced approach may, after all, be what secures ASEAN's success on the global stage.
