Once relegated to the role of a mere supplier of raw materials, Asia is now establishing itself on the global stage as a dynamic economic powerhouse, characterized by ample room for growth. Data confirms this: according to the International Monetary Fund, Asia-Pacific countries recorded GDP growth of 4.6% in 2024 – compared to 1.8% for advanced economies – accounting for approximately 60% of global economic growth.
From a macroeconomic perspective, over the past decade, many countries in the region have strengthened their fundamentals, reducing deficits and limiting the depreciation of their currencies. This has helped mitigate structural vulnerabilities and create a more stable and attractive environment for investmentt. As a result, billions of dollars have flowed into local economies in recent years: for example, considering the Association of Southeast Asian Nations (ASEAN) alone, between 2021 and 2023, the region attracted an average of $220 billion in foreign direct investment (FDI) per year, reaching a record $230 billion last year.
Above all, the Asia region is undoubtedly emerging as one of the major winners in the global supply chain reorganization. The creation of the $100 billion Asian Infrastructure Investment Bank (AIIB), the New Development Bank (formerly the BRICS Bank), and, in particular, the Belt and Road Initiative (BRI) have significantly increased investment in the region and strengthened cooperation between China and its neighbours. Ports, highways, and railways are being built or expanded throughout the region. Once completed, this vast network is expected to extend from China to the Netherlands, via the Middle East, Singapore, and Africa.
With a population of nearly 5 billion, Asia is by far the most populous region on the planet, but these demographic trends also appear to be favouring local growth. Initially, the abundance of cheap labour enabled emerging Asian economies to attract low-value-added manufacturing activities – activities that are now expanding into higher-value-added industries such as electronics, semiconductors, machinery, electric vehicles and batteries, as well as pharmaceuticals..
The development and modernization of emerging Asian economies, in addition to their considerable competitive advantages – affordable and skilled labour force, considerable political stability, and privileged access to essential raw materials – has led to rising income levels, thus strengthening the local middle class. Lifestyles and consumption are growing, creating fertile ground for an unprecedented booming infrastructure, driven by new technologies, green energy transition infrastructure, and growing domestic demand. These dynamics offer significant opportunities for the supply of high-value-added Italian goods and services, combining exports, industrial partnerships, and technological cooperation.
Strategic Opportunities for Italian Exports
In this context, the Asia-Pacific Focus of the Export Action Plan, developed by the Ministry of Foreign Affairs and International Cooperation (MAECI) last April, in collaboration with the players of the Italian System – ITA, Simest, SACE, and CDP – fits perfectly into the national strategy aimed at stepping up exports to high-potential non-EU markets, with the overall goal of reaching €700 billion in exports by the end of 2027.
In the Asia-Pacific region, Italy confirms its position as a global export powerhouse: in 2024, out of total trade with the region of €144.6 billion, Italian exports totalled €55.3 billion. The strength of Italy’s supply is evident in key sectors for Made in Italy products such as mechanical engineering, pharmaceuticals and chemicals, fashion, agri-food, and transportation.
In the Asia-Pacific region, the Plan’s action focuses on priority markets, such as China, which is the leading export market for Italy in the Asia-Pacific region, and the second largest non-European country after the United States, with €15.3 billion in 2024, followed by Japan with €8.2 billion, South Korea (third-largest market with €6.2 billion), Australia (€5.4 billion), and India (€5.2 billion). The sectors identified as priorities for the entire Asia-Pacific region include machinery, high-quality goods, chemical and pharmaceutical products, energy transition, infrastructure, and telecommunications networks.
ASEAN is a rapidly expanding area in the region, where Italian exports reached €10.7 billion in 2024, a significant 10.3% increase over the previous year. While Singapore is still the leading destination for Made in Italy products (with €3.2 billion in 2024), Thailand could be overtaken for second place (€1.9 billion) by neighbouring Malaysia (€1.7 billion) and Vietnam (€1.5 billion). Indeed, these two countries saw their purchases of Italian products grow significantly in 2024, up 23.4% and 26%, respectively, compared to the previous year. Finally, Indonesia and the Philippines round out the ranking, with €1.2 billion and €0.9 billion in 2024.
In this issue, dedicated entirely to Asia, we will take a closer look at four markets in the region. Four strategic markets for the internationalization of Italian companies. Four markets with diverse growth trends and dynamics, but all providing significant opportunities for the supply of high-value-added Italian goods and services.
