Business leaders across Southeast Asia remain cautiously optimistic about growth prospects despite escalating geopolitical tensions and global economic uncertainty, according to the Deloitte APEC CEO Survey 2025.

While only 46% of CEOs in the region express confidence in the global economy, 75% expect their own companies to perform better over the next 12 months. Confidence in the broader Asia-Pacific outlook is also notably higher, with 66% anticipating regional economic expansion.

Geopolitical instability emerges as the top threat

The survey highlights a marked shift in risk perception among Southeast Asian executives.
47% now cite geopolitical instability as the single greatest threat to business growth — the highest among all risk categories. Leaders point to rising trade tensions, supply-chain vulnerability, and uncertainty in major power relations as key drivers.

In response, many companies are reassessing operational structures:

  • 50% plan to diversify or expand supply chains within the next year.

  • More than a third are exploring new markets to reduce over-exposure to geopolitical hotspots.

Technology and innovation drive future growth

When asked about growth enablers, business leaders ranked technology adoption as the most important driver today (45%). Over the next three years, however, priorities shift: 47% expect new product development and innovation to become the leading catalyst for expansion.

The findings suggest a transition away from efficiency-driven growth toward capability-building and value creation.

Sustainability investment surges

One of the survey’s most striking results is a dramatic rise in sustainability commitments.
73% of respondents plan to increase sustainability investment in the coming year — more than double last year’s 32%.

This surge reflects growing pressure from regulators, investors, and supply-chain partners, as well as recognition that ESG performance now influences brand reputation and competitive positioning across Asia.

M&A appetite strengthens

Corporate appetite for mergers and acquisitions remains resilient.

  • 42% expect to pursue deals within the next 12 months.

  • This figure rises to 61% when executives consider a three-year horizon.

Cross-border acquisitions are expected to be particularly active, as companies seek new capabilities, regional footholds, and supply-chain resilience.

Implications for Vietnam, Thailand, and India

For major enterprises in Vietnam, Thailand, and India, the survey highlights three strategic imperatives:
• Innovate, not just optimize—as growth engines shift from cost efficiency to product development.
• Diversify supply chains—reflecting the 50% regional trend toward multi-market sourcing.
• Integrate sustainability into strategy—as the ESG investment wave broadens beyond compliance.

These trends align closely with the metrics tracked by Boston Report Group and its partners in regional corporate rankings and governance assessments.

About the survey

The Deloitte APEC CEO Survey 2025 gathers executive insights from 2,000 business leaders across the Asia-Pacific region, including a dedicated sample of CEOs from Southeast Asia. The survey reflects sentiment as of November 2025.

Source: Deloitte Southeast Asia Press Release, “APEC CEO Survey 2025: Southeast Asia Growth Outlook,” November 2025.