SME  /  E-COMMERCE

By FedEx | First published: April 21, 2021    Updated: February 20, 2026

As supply chains reconfigure and regional demand accelerates, intra-Asia trade is emerging as a powerful engine of business growth. Here’s why SMEs should look closer to home for faster expansion and more resilient cross-border opportunities.

• Intra-Asia trade now accounts for over half of Asia’s total trade value, supported by diversified supply chains and stronger regional air connectivity. 
• APAC continues to outpace global growth, with ASEAN economies and cross-border e-commerce driving sustained business momentum across the region.
• Rising middle-class demand, accelerating digital adoption, and trade agreements such as the RCEP are creating opportunities for SMEs across Asia-Pacific markets.

Asia’s growth story is increasingly written within the region itself. 

For small businesses, e-commerce sellers, and fast-growing regional brands, intra-Asia trade is becoming a core engine of expansion. In practical terms, intra-Asia trade refers to commerce among countries within Asia, whether from Singapore to Vietnam, Japan to South Korea, or Malaysia to Thailand.

As supply chains diversify and digital adoption accelerates, many ambitious Asian SMEs are prioritizing growth in neighboring markets. Here are five reasons why intra-Asia trade deserves your attention.

1. Intra-Asia trade remains strong and diversified

Over the past four decades, intra-Asia trade has grown by 43%. Nearly 57% of Asia’s trade value originates within the region, making it the world’s second most integrated region after the European Union (EU).     

Take, for example, the strong economic ties between China and the Association of Southeast Asian Nations (ASEAN), which are each other’s largest trading partners. In 2023, ASEAN accounted for 15% of China’s total trade, while China represented 20% of ASEAN’s trade.

Asia’s regional trade integration is largely driven by the rapid growth of manufacturing supply chains across borders, two-thirds of which are used to produce parts for other goods. China remains the undisputed leader in manufacturing, with the world’s most comprehensive industrial network, accounting for nearly 30% of global output.

And while ASEAN functions as a regional bloc, each member country has its own strengths. Vietnam, for example, is a major producer of basic metals, plastics, synthetic rubber, and electronic components. Meanwhile, Malaysia’s manufacturing base is diversified, with clusters ranging across electronics, aerospace components, petrochemicals, and precision engineering.

Rather than relying on a single export market, businesses are building multi-country supply chains across Asia, enhancing resilience and opening up new opportunities in Indo-Pacific corridors.

Air cargo plays a critical role here, as time-definite international shipping services help businesses maintain speed and reliability across Asian markets.

In 2025, for instance, FedEx launched its first direct flight between Taiwan and South Korea, and reduced outbound delivery times from select Chinese cities to Japan by one day. These enhancements support the growing demand for faster, more reliable regional connectivity.

2. APAC continues to outpace global growth

Asia-Pacific (APAC) remains the world’s fastest-growing economic region, accounting for around 60% of global growth. The region even outperformed global trade averages in 2024, reflecting its resilience amid significant headwinds.

In terms of e-commerce, APAC is also the world’s largest and fastest-growing market. In the B2B e-commerce space, APAC’s gross merchandise value is expected to grow at 15% on average annually, surpassing the global average of 14.5%.

Despite these impressive numbers, APAC still has significant untapped potential. Only 11% of the region’s e-commerce volume is currently cross-border, even with integrated payment systems and robust trade flows. This presents a substantial growth opportunity for SMEs, whose participation in intra-Asia e-commerce could further accelerate the region’s expansion and reinforce its position ahead of the global pace.

3. Asia’s start-up ecosystem fuels innovation

Asia is home to the world’s second-largest start-up ecosystem, capturing 23% of all venture capital investments between 2021 and 2023. It continues to produce high-value tech companies across fintech, advanced manufacturing, artificial intelligence, and health tech. Singapore, in particular, has emerged as a hub for tech start-ups, thanks to its dynamic ecosystem, strong government support, and favorable policies.

This culture of innovation enables SMEs to digitize and scale rapidly. From mobile-first payment systems to AI-driven inventory planning, APAC businesses can grow efficiently by adopting cutting-edge solutions and building technology partnerships.

4. A rising middle class reshapes demand

By 2035, APAC will be home to 3.2 billion middle-class consumers – representing 64% of the global middle-class population. With daily incomes ranging from USD 13 to USD 120, this rising middle class will have a profound impact on business opportunities in the region.

As incomes rise, consumers will spend more on education, health, recreation, and financial services. Discretionary spending will also rise for fashion, beauty, electronics, healthcare products, and even specialty foods.

This affluent and digitally savvy customer base comes with increasingly sophisticated expectations. Most middle-class consumers discover brands through social media, prefer personalized customer experiences, and value fast delivery. Businesses that meet – and exceed – these expectations will be able to outperform competitors and unlock rich opportunities for growth.

5. Trade agreements lower barriers to entry

APAC trade agreements continue to deepen regional economic integration.

The Regional Comprehensive Economic Partnership (RCEP) is now in full force among the 10 ASEAN member states, Australia, China, Japan, South Korea, and New Zealand. It is the world’s largest free trade agreement (FTA), covering about 30% of global GDP. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) similarly facilitates tariff reductions and improves market access across its 12 participating countries.

These agreements make it easier for small businesses to expand across APAC markets. They remove barriers to market access by simplifying customs procedures, reducing tariffs on eligible goods, and encouraging supply chain collaboration.

If your business is new to intra-Asia trade, understanding the benefits and requirements of these FTAs can help reduce administrative burdens. Digital tools such as FedEx Electronic Trade Documents and FedEx Global Trade Manager can help you estimate taxes and duties, identify HS codes, and prepare paperwork more efficiently.

Looking ahead: A regional strategy with global impact

For SMEs and e-commerce merchants, your next chapter of growth may begin closer to home.

Intra-Asia expansion offers a practical path to scale: new markets are geographically closer, transit times are shorter, and trade agreements reduce barriers to entry. If your business has global ambitions, success within Asia allows you to hone your cross-border capabilities, providing a springboard for wider global expansion.