Asian countries have enjoyed tremendous gains from free trade and globalization, driving remarkable economic growth. Yet, as international trade is hit by headwinds and geopolitical tensions escalate, that growth is increasingly vulnerable—threatening livelihoods, especially among the vulnerable in the Asia-Pacific. Cambodia, Vietnam, and Sri Lanka are considered particularly vulnerable, as per several analyses.
To overcome such challenges, authorities stress the requirement of structural reform to enhance the investment environment. Deregulation is one possible measure that may spur domestic demand. Meanwhile, diversifying sectors and supply chains, as well as enhancing vocational training and education, are imperative steps. Promoting trade relations and further integration of economic interdependence in the region are likewise imperative.
“A free and open trade system is a reflection of humanity’s wisdom. Now is the times to further proceed with an open economy,” the piece stresses. In such a system, Asian nations can form win-win relationships—supplying high-quality goods abroad while importing valuable products in return, thus fostering mutual improvement and support.
The Asian Development Bank (ADB) is taking a prominent role in backing regional resilience. It financially supports structural reform and seeks to enhance industrial sustainability. A primary initiative is the $10 billion (around ¥1.4 trillion) investment in an ASEAN countries-interconnected international power grid project aimed at securing a stable electricity supply.
In order to protect against economic shocks, the ADB has also instituted a system for the quick disbursement of emergency loans, for example, during times of capital flight. With increasing global tensions, the expectations are mounting for the ADB, which stays neutral and now has added responsibility.
During discussions in April, U.S. Treasury Secretary, Scott Bessent praised the ADB’s efforts, stating the bank’s strategy to foster job creation and promote technological innovation by supporting the private sector is commendable. He added, “We also agreed that the ADB and the United States will work to build closer ties.”
While nations continue to pursue their interests amid complex domestic debates, maintaining a free trade system is more important than ever. By embracing the current crisis as a catalyst for reform, countries in the Asia-Pacific region have a unique opportunity to build a more resilient and inclusive economic future.