Competitiveness Gains in ASEAN

ASEAN countries have improved their competitiveness significantly over the past 10 years. However further improvements in technological readiness, infrastructure and education have to be made to sustain growth and to bridge gaps between countries.

The structural changes and productivity growth observed in ASEAN has been reflected in their strong competitiveness performance. On average, ASEAN Competitiveness has improved by approximately 6% over the past 10 years with notable improvements in 11 out of the 12 dimensions covered.

While almost all countries have risen in the rankings, some countries have made extraordinary progress: Indonesia has caught up with Thailand, ranked 37^th, and the Philippines has overtaken Vietnam to reach 47^nd while Cambodia, ranked 90^th, has also made important strides.

However, there is no room for complacency. Despite significant progress, large competitiveness gaps remain between ASEAN and advanced economies. In addition, competitiveness is a moving target: the development frontier is constantly expanding. Therefore countries need to continuously reform and update their levels of efficiency and technology to deliver higher prosperity to their citizens.
ASEAN has to further improve its technological readiness, infrastructure and education. Although they have already improved substantially, further upgrades and investments are needed both across ASEAN countries and vis-à-vis the top performers globally.