Five Asia-Pacific Economies US Investors Are Underestimating Right Now
While institutional capital continues to crowd into familiar markets like Japan and Singapore, a cohort of high-velocity economies across the Asia-Pacific is generating outsized returns for the investors willing to do the harder work of understanding them. Here is what US funds and entrepreneurs are missing — and how to close the knowledge gap before the window narrows.
The Asia-Pacific region accounts for approximately 60 percent of global GDP growth, yet US investor allocation to the region remains heavily concentrated in a handful of mature markets. The result is a persistent opportunity gap — one that EB Asia's market intelligence work consistently surfaces across sectors from financial technology to clean energy infrastructure.
The five markets profiled below are not without risk. Each carries entry barriers, regulatory complexity, and structural challenges that deserve serious due diligence. But for investors equipped with the right regional intelligence and local networks, each also offers a compelling risk-adjusted case.
1. The Philippines: A Fintech Frontier With Built-In English Fluency
Why It Matters Now
The Philippines is home to more than 115 million people, roughly 70 percent of whom remain either unbanked or underbanked. That statistic, combined with smartphone penetration exceeding 73 percent and one of the youngest median-age populations in Southeast Asia, has created conditions for fintech adoption that rival the most celebrated digital finance stories of the past decade.
The Bangko Sentral ng Pilipinas has been notably progressive by regional standards, having issued a digital banking framework in 2021 that licensed six fully digital banks and established a regulatory sandbox encouraging further experimentation. GCash and Maya have already demonstrated that Filipino consumers will embrace mobile financial services at scale.
Entry Considerations
Foreign equity ownership in financial services remains capped under the Philippines Constitution, requiring US investors to structure participation through joint ventures or minority stakes. Navigating this requires experienced local counsel and, ideally, an established in-country partner with existing regulatory relationships. The Anti-Dummy Law carries significant penalties for arrangements that circumvent ownership restrictions in spirit while attempting to comply in form.
Investment Tip: Focus on B2B fintech infrastructure — payment rails, credit scoring, and KYC technology — where foreign participation constraints are less restrictive and where the growth runway is longest.
2. Bangladesh: Manufacturing's Next Chapter Beyond Apparel
Why It Matters Now
Most US investors, if they think of Bangladesh at all, think of garments. And the garment sector is indeed formidable — Bangladesh is the world's second-largest apparel exporter. But the more interesting story for forward-looking investors is what comes next: a government-led industrial diversification push supported by 100 designated Special Economic Zones, an expanding middle class, and a technology sector that has quietly produced several unicorn-trajectory startups.
The country's GDP growth has averaged approximately 6.5 percent annually over the past decade, a performance that has attracted increasing attention from Asian development finance institutions even as US capital remains sparse.
Entry Considerations
Bangladesh's regulatory environment is improving but remains bureaucratically demanding. Repatriation of profits, while legally permissible, can be slow in practice. Political risk — the country has experienced significant civil unrest in 2024 — requires careful monitoring. The Bangladesh Investment Development Authority (BIDA) has made efficiency improvements, but deal timelines should be planned conservatively.
Investment Tip: Light manufacturing, agri-tech, and digital health are sectors where early-mover positioning is still available and where development finance co-investment from institutions like the US International Development Finance Corporation can reduce risk exposure.
3. Vietnam: Beyond the Manufacturing Story
Why It Matters Now
Vietnam is already on most US radar screens as a manufacturing relocation destination, but the consumer economy and digital sector are equally compelling and considerably less crowded with foreign capital. Vietnam's e-commerce market is projected to reach $39 billion by 2025, growing at a compound annual rate that outpaces every comparable market in the region. A rapidly expanding urban middle class — expected to reach 26 million households by 2026 — is driving consumption across categories from premium food and beverage to financial services.
Entry Considerations
Vietnam's foreign investment law has been substantially modernized, but sector-specific restrictions remain, particularly in media, telecommunications, and certain financial services. Intellectual property enforcement, while strengthening, still lags international standards. Corruption risk at the local government level requires robust compliance frameworks.
Investment Tip: Consumer-facing digital platforms and logistics technology are the highest-conviction sectors for US capital. Strategic partnerships with established local players accelerate regulatory navigation and market access simultaneously.
4. Sri Lanka: A Contrarian Opportunity in Recovery
Why It Matters Now
Sri Lanka's 2022 economic crisis scared away most foreign investors — which is precisely why the contrarian case is worth examining carefully. The country has secured an IMF program, is stabilizing its macroeconomic fundamentals, and retains genuine structural advantages: a strategic location along major Indian Ocean shipping lanes, a literacy rate above 92 percent, and a historically capable services export sector.
Renewable energy, in particular, presents a significant opportunity. Sri Lanka has committed to 70 percent renewable electricity generation by 2030 and is actively soliciting foreign investment in solar, wind, and storage infrastructure through a restructured regulatory framework.
Entry Considerations
Debt restructuring remains ongoing, and sovereign risk is real. Currency volatility, while reduced from crisis peaks, requires careful hedging strategy. Political continuity of reform commitments is not guaranteed.
Investment Tip: Renewable energy project finance, structured with appropriate political risk insurance through multilateral agencies, offers the most defensible entry point. Direct equity exposure to domestic sectors should await further macroeconomic stabilization.
5. Indonesia: The Giant That Keeps Surprising
Why It Matters Now
Indonesia's sheer scale — the world's fourth most populous nation, a $1.4 trillion economy, and the largest economy in Southeast Asia — means it belongs on every serious Asia-Pacific investor's list. Yet US capital remains underweight relative to the opportunity. The digital economy alone is projected to reach $130 billion by 2025. The electric vehicle supply chain, anchored by the world's largest nickel reserves, is drawing global capital at an accelerating pace.
Entry Considerations
Indonesia's investment climate has improved markedly under the Omnibus Law reforms, but implementation is uneven across ministries and regions. Local content requirements in several sectors are demanding. Building effective local partnerships — not merely nominal ones — is the single most critical success factor.
Investment Tip: Infrastructure, digital logistics, and clean energy transition investments offer the best combination of scale, policy tailwind, and defensible market positioning for US institutional capital.
Closing the Intelligence Gap
The common thread across all five of these markets is that the premium for genuine regional knowledge remains exceptionally high. US investors who approach Asia-Pacific through the lens of publicly available data alone will consistently find themselves behind — outmaneuvered by regional players and local capital that understand the nuances these markets demand.
Closing that gap requires sustained investment in on-the-ground intelligence, experienced local networks, and the patience to build relationships before deploying capital. The returns available to those who make that commitment are, in our assessment, among the most compelling in the global investment landscape today.
