ASEAN eyes bolstering resilience, sustaining growth

ASEAN leaders and senior officials are looking forward to enhancing the bloc's resilience, promoting sustainable growth and advancing technological development.

Though the Association of Southeast Asian Nations has encountered many challenges in the supply chain over the past few years, it is lucky the bloc has been resilient enough to deal with those external challenges, said Lao Prime Minister Sonexay Siphandone at the opening session of the ASEAN Business and Investment Summit, or ABIS, in Vientiane.

This resilience is not only by the government but also can be attributed to the role of the private sector, said Sonexay, adding he hopes regional businesses can continue advancing technological development and work with the government to jointly tackle climate change.

Organized by the ASEAN Business Advisory Council, the four-day business conference was held during the ASEAN Summit week as Laos, the ASEAN chair for this year, is hosting the 44th and 45th ASEAN Summits and related meetings in its capital on Oct 6-11.

The theme of this year's ABIS is Enhancing Economic Connectivity and Resilience.

In his keynote address, Vietnamese Prime Minister Pham Minh Chinh said ASEAN member states should promote solidarity and jointly enhance integration.

"The business sector is an important engine for achieving the sustainable development goals of the region," said Chinh, noting ASEAN can only be strong enough to face external challenges when its economy is resilient.

Chinh said the governments, businesses and communities should work together to promote connectivity, encourage innovation and technology, as well as develop a green economy.

Citing examples such as the Regional Comprehensive Economic Partnership, Kao Kim Hourn, ASEAN's secretary-general, said the bloc has successfully expanded its trade network by forming free trade agreements with major economies, and is broadening economic cooperation with partners in the Middle East, Pacific and Latin America.

Signed by ASEAN and its five major trading partners, namely China, Japan, South Korea, Australia and New Zealand, the RCEP is the world's largest free trade pact, covering nearly one-third of the world's population and about 30 percent of its GDP.

Investment hub

"These agreements will lower trade barriers, reduce costs, harmonize standards, and bolster ASEAN resilience to external shocks, cementing our region's position as a premier global trade and investment hub," said Kao, in his opening remarks.

"This year marks another milestone in ASEAN's journey toward deeper regional integration and shared prosperity," said Malaithong Kommasith, ASEAN Economic Ministers chair and Lao Minister of Industry and Commerce.

ASEAN is now the world's fifth-largest economy with a combined GDP of more than $3.6 trillion.

In the face of rising geopolitical tensions, protectionism, and economic uncertainties, Malaithong said the member states must work together to protect the stability and openness of the region.

"It is this unity that will allow us to weather the challenges of the future," said Malaithong, delivering his opening remarks.

ASEAN has the potential to be a leader in green technology and sustainable investment, said Oudet Souvannavong, president of the Lao National Chamber of Commerce and Industry and chair of the ASEAN Business Advisory Council 2024.

"It is estimated that transitioning to a green economy could add up to $2 trillion in economic opportunities in ASEAN by 2030," said Oudet, in his welcoming remarks.

Noting that promoting a green economy will protect the environment and drive economic growth at the same time, Oudet said he hopes all stakeholders can consider how they can actively help enhance this transition.