Southeast Asia: Riding the Green Wave of Growth
Southeast Asia is cementing itself as a global powerhouse, not just through robust economic growth, but also by seizing the opportunity of the green energy transition. The region’s dynamism is evident in its swelling share of the global GDP, which surged to 44% in 2023, a tremendous leap from 36% in 2010.
This incredible growth is fueled by a confluence of factors, including powerhouse economies like Indonesia, Malaysia,Thailand, and Vietnam. These nations have consistently displayed remarkable resilience, navigating the 2008 financial storm and bouncing back from the pandemic’s slowdown to achieve sustained growth.
"The Asian Development Bank projects regional growth of 4.6 percent in 2024 and 4.7 percent in 2025 — higher than the global averages and outpacing major economies such as the European Union, the US and Japan," the report notes, highlighting the region’s competitive edge.
But Southeast Asia is not merely riding the tide of economic growth; it’s actively shaping the future by becoming a focal point for clean energy development. Abundant natural resources, established industrial bases, and a competitive workforce position the region perfectly to capitalize on the global demand for green technologies.
Leading this green revolution is China, the undisputed global champion of clean energy. China’s market dominance in solar photovoltaic supply chains, electric vehicle production, and battery technology is simply astounding:
“China currently holds more than 80 percent of the global market share in all stages of the solar photovoltaic supply chain, from polysilicon to cells and modules … In electric vehicles (EVs), China accounts for nearly 90 percent of global cathode manufacturing capacity and almost all of the anode capacity — both essential for making mobility batteries. It also produces more than 80 percent of the world’s battery cells and over half of global EV output."
This dominance, however, is not a product of overnight success. China’s journey to the top of the clean energy sector has been a decades-long strategy of sustained investment in research, development, and the creation of integrated industrial clusters.
While China plays a critical role, it’s not a one-way street. The ASEAN countries are strategically leveraging partnerships with China to accelerate their own clean energy development. This collaboration is already yielding impressive results, particularly in the solar sector.
"Trina Solar, a major Chinese solar power equipment manufacturer, has set up production facilities in Malaysia, Indonesia and Vietnam," the report cites as an example.
By 2022, Southeast Asia had emerged as the world’s second-largest producer of solar modules, trailing only China itself. This reflects a dramatic ascent from a negligible level just a few years ago.
The ripple effects of this collaboration extend to the electric vehicle (EV) sector as well. BYD, a global EV giant, has established manufacturing plants in Thailand, transforming the country into a regional EV hub and accelerating Thailand’s ambitions to become a major player in the global EV market.
For Southeast Asia, a region deeply dependent on trade, collaborative strategies like those seen through the Belt and Road Initiative (BRI) are critical for fostering lasting socioeconomic progress.
The BRI is playing a key role by promoting interconnected regional supply chains, reducing the risk of single-country dominance and fostering economic resilience.
The growing partnership between China and Southeast Asia offers a compelling model for global sustainability. It demonstrates the power of collaborative action, creating economic prosperity while driving the transition to a clean, secure, and prosperous future.
## Interview: Southeast asia: Riding the Green Wave of Growth
**World Today News:** Today, we’re joined by dr. Leanne Chen, a leading expert on Southeast Asian economics and enduring development at the National University of Singapore. Dr. Chen, thank you for joining us.
**Dr.Chen:** my pleasure. It’s exciting to discuss the dynamic landscape of Southeast Asia.
**World Today News:** Southeast Asia’s economic rise is undeniable. We’ve seen its share of global GDP surge to an notable 44% in 2023. What are the key drivers behind this remarkable growth?
**Dr. Chen:** It’s a combination of factors. Firstly,**strong regional economic integration:** ASEAN has fostered closer economic ties,encouraging trade and investment within Southeast Asia.Secondly, **demographic dividend:** the region has a young and growing workforce, providing a significant advantage. Thirdly, investments in **infrastructure and technology** have modernized economies and boosted productivity.And the rise of **middle classes** across the region has spurred domestic demand.
**World Today News:** You also mentioned the “green wave” of growth. Can you elaborate on how Southeast Asia is positioning itself as a leader in the global green energy transition?
**Dr. Chen:** Absolutely. Southeast Asia boasts abundant natural resources, including hydropower, solar, and wind energy. governments are increasingly recognizing the potential of renewables not just for environmental sustainability but also for economic competitiveness. we’re seeing a surge in investments in solar and wind farms, along with policies to promote energy efficiency and green technology adoption.
**World Today News:** Which countries in the region are at the forefront of this green transition?
**Dr. Chen:** Vietnam is making impressive strides with substantial investments in solar power. Thailand is focusing on promoting electric vehicles and smart grids. Indonesia, with its vast geothermal resources, has immense potential for clean energy generation. Malaysia is actively developing its biofuel industry.
**World Today News:** The transition to green energy presents both opportunities and challenges. What are some of the key obstacles Southeast Asian nations need to overcome?
**Dr. Chen:** Financing remains a major hurdle.Many countries need substantial investment in renewable energy infrastructure and grid modernization. Another challenge is **regulatory uncertainty and policy inconsistencies** which can deter private sector investment. Additionally, **building public awareness and acceptance** of green technologies is crucial for successful implementation.
**World Today News:** Looking ahead, what are the key factors that will determine Southeast asia’s continued economic success and sustainability?
**Dr. Chen:** Continued **regional cooperation and integration** are vital. harnessing the power of **innovation and technology**, particularly in areas like green
technology and digitalization, will be crucial. And lastly, a **strong focus on human capital development**, ensuring a skilled and adaptable workforce, will be essential for sustained growth in the long term.
**World Today News:** Dr. Chen, thank you for sharing your insights.
**Dr. Chen:** It was a pleasure. I’m optimistic about Southeast Asia’s future. Its dynamism,coupled with a proactive approach to sustainable development,positions it well to become a global leader in the 21st century.
