Southeast Asia Connects
Southeast Asian nations Cambodia, Malaysia, Singapore, and Vietnam are among the most connected companies in the world, beating expectations by the widest margins.
That’s one finding of DHL’s Global Connectedness Index—an analysis of globalization as measured by international trade flows, capital, information, and people. Improved supply chain networks within the region and ASEAN policy initiatives promoting economic integration are factors contributing to Southeast Asia’s high scores.
Singapore remains the world’s second-most-connected country, and the only Asia Pacific country to feature in the Top 10 ranking. Myanmar experienced the biggest improvement, jumping 23 spots to 133rd position. Hong Kong retains its second place behind Singapore on the depth dimension of the Index, which measures the proportion of overall physical, intellectual, and human capital that crosses national borders. Japan and South Korea continue to rank among the top five in global breadth of the same flows.
Overall, the index is a testament to Southeast Asia’s connection and commitment to the global economy. After establishing the ASEAN Economic Community in 2015, the region has seen impressive trade flow improvements, specifically, significant advances in reducing tariffs and improving logistics.