Tech and innovation: The Changing Face of South East Asia

On December 31, 2025, the ASEAN Economic Community (Association of Southeast Asian Nations, established in 1997) will celebrate its 10th anniversary. The 10 member countries have created a large common market, allowing for deeper regional integration. This integration has gradually extended beyond the original framework, particularly through ASEAN+3 (with China, Japan, and South Korea). Despite significant disparities among member states and numerous geopolitical tensions, Southeast Asian countries have benefited from the reorganization of global value chains, the relocation of certain Chinese manufacturing operations, and a strong inflow of foreign investment. This growing international integration has been accompanied by a drive for innovation and industrial upgrading in nearly all member countries, albeit in diverse ways depending on their level of development, political systems, and social structures. The development of artificial intelligence, smart cities, and semiconductor production has advanced in many ASEAN nations, supported by state initiatives aimed at fostering dynamic startup ecosystems. These countries share ambitious goals but remain vulnerable and heavily dependent on foreign investment. They are still overshadowed by their larger neighboring economies.