Countries in the ASEAN region remain attractive to European Union investors, a recent poll from the EU-ASEAN Business Council said.

However, the Philippines is not included in the favored list of ASEAN countries preferred by the surveyed EU business owners.

According to the EU-ASEAN Business Sentiment Survey, released on Wednesday, European business confidence in ASEAN has withstood global trade uncertainty. Respondents noted that the region has become more important to global revenues, with many expecting to expand business operations in top ASEAN markets, namely Vietnam, Indonesia, Malaysia, and Thailand.

“While the EU remains one of ASEAN’s most trusted partners, only 20 percent of respondents feel that European institutions are doing enough to support their business interests in the region, signalling more room for impactful engagement. That figure has not changed in the last two years, underscoring the need for the EU to show greater ambition in its economic diplomacy and trade policy towards Southeast Asia. Advances in free trade agreement (FTA) negotiations with Malaysia, the Philippines, and Thailand will help with this,” said Jens Ruebbert, chairperson of the EU-ASEAN Business Council, in the foreword of the study.

In 2024, total trade between the Philippines and the EU reached $15.5 billion, making the EU the country’s fifth-largest trading partner.

Philippine exports to the EU were valued at $8.1 billion, while imports stood at $7.5 billion. 

The survey gathered 474 responses from representatives of European businesses.

The poll also said ASEAN has emerged as the region of best economic opportunity for European businesses, beating India and China for the third consecutive year.

Yet, positive sentiment appears tempered by concerns over global trade uncertainty this year, as a smaller share of respondents expect to see increased levels of trade and investment regionwide in the short term.

The survey’s key findings indicated that 73 percent of polled EU business owners say ASEAN has become more important to their global revenues over the past two years.

On the other hand, the survey said 77 percent of respondents stressed that there are too many barriers to the efficient use of supply chains in ASEAN, with 58 percent indicating that they feel non-tariff barriers to trade are increasing, up from 40 percent in 2024.

“ASEAN continues to be viewed as the most promising region for growth, but at the same time, European businesses report frustration at the slow pace of regional integration. Non-tariff measures, regulatory inconsistencies, and persistent bottlenecks continue to add cost and complexity, limiting the full benefits of ASEAN’s market potential. Unless greater effort is made to address these barriers, the region risks falling short of its ambition to function as a truly single, integrated market,” said Chris Humphrey, Executive Director of the EU-ABC.

He added: “The 2025 survey points to a critical juncture for both ASEAN and Europe. European companies remain committed to expanding in the region, but fully capitalizing on ASEAN’s growth requires faster progress on reducing barriers and deepening integration. At the same time, the EU must step up its engagement to stay competitive, with a region-to-region FTA now seen as a strategic necessity. As global trade realignments continue, ASEAN must accelerate integration, and Europe must prioritize engagement to secure its place in the region’s growth story.”

Moreover, the study found that ASEAN has maintained its position for the third consecutive year as the best region for economic opportunity within a five-year timeframe, far ahead of India and China.