Investing in ASEAN gains modern slant

Vietnam will be a big beneficiary from ASEAN’s investment and trade frameworks, set to be completed this year.

- By Nguyen Dat

Member states last week welcomed the completion of the signing of the Fifth Protocol to amend the ASEAN Comprehensive Investment Agreement.

“We looked forward to the entry into force of the protocol to operationalise the transition to a two-annex negative list and implement the obligations on the prohibition of performance requirements mandated under the Fourth Protocol to amend the agreement,” a statement said. “We underscored that this development would enhance certainty, transparency, and predictability for investors while ensuring that ASEAN’s investment regime remains modern, relevant, and responsive to evolving business needs.”

The new protocol aims to increase transparency and expanding the scope to sectors like agriculture, mining, and forestry. It aims for a more modern, adaptive investment regime, strengthening investor confidence and incorporating a ratchet mechanism for some members.

In addition, it also simplifies the process for investors to identify sectors available for investment, as sectors with market access restrictions or limitations will be listed accordingly. The manufacturing sector is particularly expected to draw more investments.

Member states last week also welcomed and looked forward to the implementation of the ASEAN Capacity Building Roadmaps on Competition and Consumer Protection 2026-2030.