Secretary-General of ASEAN, Dr. Kao Kim Hourn, participated in the China–ASEAN Industry Ministerial Roundtable Meeting on the sidelines of the China–ASEAN Expo, on September 17 in China, highlighting ASEAN’s robust economic progress and changing trade patterns.
He underscored the strategic role of the industrial sector in driving regional integration and growth and reaffirmed ASEAN’s commitment to advancing industrial cooperation through the ASEAN Industrial Project-Based Initiative (AIPBI). He also called for deeper collaboration in green industries, digital manufacturing, and resilient supply chains to strengthen competitiveness and sustainability in the region.
“Over the years, ASEAN has made significant progress in economic integration, underpinned by strong trade linkages and industrial development. Today, ASEAN is the world’s fifth-largest economy, with a combined GDP of more than USD 3.9 trillion and a population exceeding 670 million people.
“The industrial sector has been central to this growth—contributing nearly one-third of our GDP, creating millions of jobs, and reinforcing ASEAN’s role in global value chains.2 But disparities in capacity across the region, as well as external headwinds, remind us that progress cannot be taken for granted.
“Looking forward, one thing is clear: trade and industry must advance together. ASEAN recently upgraded the ASEAN Trade in Goods Agreement (ATIGA) to address emerging trade issues such as food security, remanufactured goods, supply chain connectivity, and trade resilience in times of crisis. The upgrade will take place next month during the upcoming ASEAN-China Summit. The upgraded Agreement will boost intra-ASEAN trade, enhance competitiveness, promote crisis resilience, and promote innovation and sustainability. For businesses, this means lower costs, fewer barriers, and a more predictable trading environment.
“Beyond ATIGA, ASEAN is actively implementing the Regional Comprehensive Economic Partnership (RCEP), the world’s largest FTA covering one-third of global GDP and population. At the same time, we have taken steps to upgrade the ASEAN-China Free Trade Area (ACFTA), ASEAN’s first FTA with a dialogue partner and China’s first FTA.
“I believe this will also be signed next month as well. The upgraded ACFTA not only introduces deeper commitments in existing areas, such as customs procedures and trade facilitation, but also expands into new domains, including the digital economy, green economy, and supply chain connectivity. These enhancements will ensure that our FTAs remain relevant and responsive to the evolving demands of the 21st-century economy. These frameworks provide opportunities not only for large firms but also for SMEs to integrate into regional and global markets.
“Yet, agreements alone cannot unlock full potential. To remain competitive, we must strengthen our industrial base and deepen integration into global value chains—especially as supply chains shift, industrial policies evolve, and geopolitical uncertainties shape the global economy. If we do not act decisively, we risk losing ground in emerging industries where others are moving fast.
“This is where the ASEAN Industrial Project-Based Initiative (AIPBI), adopted in May 2025 by the ASEAN Economic Community Council, becomes critical. It goes beyond dialogue, focusing on tangible joint projects in advanced manufacturing, green technologies, and digitalization. The AIPBI is closely aligned with the ASEAN Community Vision 2045 and the ASEAN Economic Community Strategic Plan 2026–2030, recognising industrial cooperation as a cornerstone of ASEAN’s economic future.
“Within this context, ASEAN and China have an opportunity to elevate our partnership. China has long been ASEAN’s largest trading partner and a key partner in industrial development. Together, we can leverage complementarities to strengthen regional value chains, collaborate in emerging industries, and foster innovation-driven partnerships. The green economy, electric vehicles, digital manufacturing, and resilient supply chains stand out as areas where cooperation can deliver broad benefits for both growth and sustainability between ASEAN and China.”