A new survey of Australian-connected businesses on the ground found 47% think that integration of the Association of Southeast Asian Nations (ASEAN) is good for business while only 27% say it is not important.

This figure has now steadily risen from 41% since the AustCham ASEAN survey was first done in 2017. And it comes despite the fact that most Australian businesses in this region tend to have a country focus rather than a pan-regional operation, and the criticism of the slow pace of integration from many analysts.

Surveyed before Covid-19 really hit, 19% said they had expanded their operations significantly in the past two years, and 85% said they expected to expand over the next five years. But a short follow-up survey in April revealed 48% thought the pandemic would be strongly negative and 38% thought it would be somewhat negative, although this did not specifically refer to the investment outlook.

Vietnam’s rise has also been underlined in the survey with the country now seen as the most favorable place to expand, overtaking the Philippines and Myanmar in recent years and longer established economic partners such as Malaysia and Singapore.