As 2025 draws to a close, we reflect on some of the biggest economic stories across Southeast Asia this year. The region as a whole saw continued strong growth, led by Vietnam, which is proving that the export-led model of development remains alive and well, especially when you share a border with China. Despite some oddities in the real estate sector, Vietnam was elevated to emerging market status by index provider FTSE Russel which should drive even more investment into the country.

The exception amongst major regional economies is Thailand, where the export-led model of growth is creaking under its own weight. The Thai economy remains mired in a very low rate of growth with no obvious way out, given conditions in the global economy, ongoing armed conflict with Cambodia, and the inability of the political class to maintain a stable government and create effective policies when the country needs them most.

This year also saw the launch of several new and unusual state-owned investment funds, including Danantara in Indonesia and the Maharlika Wealth Fund in the Philippines. It’s too early to say exactly how these funds will function or what their long-term impact will be, but they are further evidence that the........

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