SINGAPORE, Sept. 9 (Xinhua) -- ASEAN remains the top growth market for European Union (EU) companies, with 78 percent of surveyed business representatives expecting trade and investment in the region to increase over the next five years, the Singapore-based EU-ASEAN Business Council said on Tuesday.
The proportion rose from 71 percent in 2025, while ASEAN remained the region offering the strongest economic opportunities for a fourth consecutive year, according to the council's 12th Business Sentiment Survey.
About 78 percent of respondents plan to expand operations in at least one ASEAN market, with Vietnam and Indonesia remaining the top two destinations.
However, uncertainty over U.S. tariff policies remains a key concern, with 81 percent saying it has weakened business confidence in ASEAN.
Among companies recalibrating supply chains amid trade uncertainty, 67 percent are considering ASEAN as an alternative or additional base.
Non-tariff barriers and regulatory fragmentation continue to constrain trade and investment in ASEAN, with 73 percent of respondents citing excessive barriers to efficient supply-chain operations.
"The region has strong fundamentals that make it an attractive supply-chain hub -- market heft, a strategic location, and regional connectivity. Addressing regulatory and cross-border frictions will strengthen market integration, allowing businesses to derive greater value from ASEAN's combined scale and encouraging more commercial activity," said Chris Humphrey, the council's executive director. ■