Vietnam, Indonesia, Malaysia, Thailand, Philippines shape ASEAN growth

A group of five Southeast Asian economies—Vietnam, Indonesia, Malaysia, Thailand and the Philippines—is set to define the next ASEAN growth cycle. In the first quarter of 2026, Vietnam posted the strongest expansion at 7.83% year‑on‑year, followed by Indonesia (5.61%) and Malaysia (5.4%). Thailand and the Philippines each grew 2.8%, reflecting fiscal delays and a tourism‑export recovery.

The five‑nation bloc, representing over 610 million people (about 90% of ASEAN’s population), benefits from large domestic markets, export‑driven manufacturing and strategic resources such as palm oil in Malaysia and Indonesia and agricultural products from Vietnam and Thailand. Their macro‑economic resilience is underpinned by solid foreign‑exchange reserves: Thailand leads with roughly US$280.5 billion, Indonesia holds US$148.2 billion and Malaysia US$130.5 billion.

Digital transformation is projected to double the ASEAN digital economy to around US$2 trillion by 2030, driven by data‑centre hubs in Thailand and Malaysia, AI and semiconductor commitments in Vietnam, and a large consumer base in Indonesia. Vietnam also recorded a record‑high inflow of foreign direct investment, nearing US$34.6 billion in the first half of 2026, underscoring the region’s attractiveness to global investors.