September 2025 marked a turning point in trade relations between the European Union (EU) and the Association of Southeast Asian Nations (ASEAN), as the two sides officially concluded negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia — a major economy in the region and a G20 member.

The agreement was signed after nearly a decade and 19 rounds of negotiations, demonstrating a strong commitment by both sides to promote deeper and more comprehensive economic cooperation. It is the first agreement in a series of efforts to expand trade cooperation between the EU and ASEAN economies.

Speaking on the sidelines of the 57th ASEAN Economic Ministers’ Meeting (AEM-57) in Kuala Lumpur, Malaysia, EU Trade Commissioner Maroš Šefčovič stated that the EU is aiming to conclude the remaining Free Trade Agreements (FTAs) with Malaysia, Thailand, and the Philippines before 2027 — the year marking the 50th anniversary of EU–ASEAN relations.

EU remains ASEAN’s second-largest investor

According to data from the European Union, over the past five years, the EU has consistently been the second-largest investor in ASEAN (after the United States), with total investment in 2024 reaching approximately USD 20.1 billion, accounting for 8.8% of total FDI inflows into the region. At the same time, the EU is ASEAN’s third-largest trading partner in goods, with average annual exports from ASEAN to the EU reaching about USD 270 billion. In 2023 alone, the trade volume reached USD 321 billion, and in 2024, USD 292.8 billion.

The EU is also ASEAN’s third-largest export market, with total exports over the past five years estimated at USD 1.536 trillion.

Growing cooperation potential

The EU is currently intensifying bilateral cooperation with ASEAN member states. Following the conclusion of CEPA negotiations with Indonesia in July 2025, the two sides signed the agreement in September of the same year. At the same time, FTA negotiations with Thailand and the Philippines were resumed in 2024.

Over the next three years, the EU plans to implement support programs for ASEAN worth approximately EUR 150 million, focusing on areas such as green transition, digital transformation, sustainable development, and competitiveness enhancement.

According to assessments from the EU–ASEAN Business Council (EU-ABC), ASEAN remains a dynamic and growing economic region, with a combined GDP estimated at USD 4 trillion and an average growth rate of about 4.5%. Key drivers of the region’s attractiveness include a large and young skilled workforce, an expanding middle class, high urbanization rates, and rapid digitalization.

A recent EU-ABC survey found that 56% of European businesses view ASEAN as a region offering significant economic opportunities, while 71% expect to expand investment and operations in the region over the next five years.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam