ASEAN-BRICS Trade Expansion Boosts Regional Investment
Businesses operating in ASEAN face rising investment flows but must navigate persistent logistical bottlenecks.
Updated on Oct. 24, 2026 in International Trade
Live Poll
Do regional economic partnerships between major blocs significantly improve long-term trade benefits for member nations?
Economic ties between ASEAN nations and the BRICS bloc are deepening as the region sees a rise in foreign direct investment. Businesses operating across these markets face both new investment flows and ongoing logistical hurdles that require significant infrastructure upgrades.
Why it matters
Expanding cooperation offers growth potential for cross-border trade, but high operational costs from customs delays and rail infrastructure inconsistencies remain persistent friction points for supply chains.
ASEAN recorded US$243.9 billion in foreign direct investment during 2025, up from US$230 billion in 2023. Officials estimate that regional transport and logistics infrastructure must expand by at least 50 percent to effectively support the targeted trade flow.
The players
ASEAN
A regional political and economic union of ten member states in Southeast Asia.
BRICS
An intergovernmental organization comprising major emerging national economies.
People's Bank of China
The central bank of China responsible for implementing monetary policy and maintaining currency swap lines.
The details
Trade expansion is currently hindered by non-tariff barriers, including varying railway track gauges and lengthy customs processing times that increase overall transit costs. To mitigate these expenses, many cross-border transactions are shifting toward the use of national currencies, facilitated by bilateral renminbi swap lines maintained by the People's Bank of China.
Timeline
2023: ASEAN recorded US$230 billion in foreign direct investment.
2025: ASEAN recorded US$243.9 billion in foreign direct investment.
2035: Target year for the completion of a sustainable ASEAN-BRICS economic network.
Market Landscape
This integration follows the regional growth patterns set by the ASEAN Economic Community roadmap. It marks a shift as member nations increasingly diversify capital sources through BRICS cooperation alongside established trade relationships.
Operators in the region should monitor infrastructure development plans, as a 50 percent expansion is required to address current shipping delays. Businesses should evaluate the cost-saving potential of local currency transaction protocols for their cross-border logistics.
The takeaway
The move toward a unified economic network by 2035 signals that regional trade complexity will likely decrease over the next decade. Monitor regional customs policy updates for simplified cross-border procedures that could reduce your freight lead times.
Further reading
Learn more about shifting global commerce at International Trade.
Source note: This article includes information reported by The Star.
Live Poll
Do regional economic partnerships between major blocs significantly improve long-term trade benefits for member nations?
