Vietnam, a nation ravaged by war decades ago, has emerged as a major tourism magnet in both Southeast Asia and Asia as a whole after successfully attracting more than twenty-one million foreign tourists in 2025, according to a VnExpress International news report. The figure is a new all-time high. What Vietnam achieved was more than 20% higher than its 2024 foreign tourist numbers. For 2026, Vietnam is aiming high with a target of 25 million foreign visitors.
To put things in perspective, posted below is an excerpt from the news report VnExpress. Some parts in boldface…
Vietnam welcomed a record number of foreign tourists in 2025 with 21.2 million, up 20.4% from the previous year and the highest ever, according to General Statistics Office.
Mainland China was Vietnam’s biggest source of visitors last year with 5.2 million arrivals, up 41% year-on-year, followed by South Korea with 4.3 million and Taiwan with 1.23 million.
The U.S. ranked fourth with 848,000, followed by Japan with 814,000. The rest of the top 10 were India (746,000), Russia (689,000), Cambodia (687,000), Malaysia (573,000) and Australia (548,000).
Tourism industry insiders attributed Vietnam’s strong performance to visa reforms.
Foreign tourists welcomed in Vietnam. (photo credit: Ho Chi Minh City Department of Tourism)
In March the government decided to extend visa exemptions until 2028 for citizens of 12 countries: Denmark, Finland, France, Germany, Italy, Japan, Norway, Russia, South Korea, Spain, Sweden, and the U.K.
In August it waived visa requirements for stays of up to 45 days for citizens of 12 more countries: Belgium, Bulgaria, Croatia, Czechia, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia, Slovenia, and Switzerland.
This expanded the unilateral visa waiver list to 24 countries and the total number including bilateral waivers to 39.
Let me end this piece by asking you readers: What is your reaction to this development? Considering the strong international tourism momentum it has right now, do you think Vietnam will succeed in attracting 25 million foreign tourists this year? Do you think a lot more visitors from Europe will come to Vietnam this year?
With 2025 already behind us, one has to wonder how the Philippines performed when it comes to attracting foreign tourists and as of this writing, the final statistics have yet to be announced by the government. What is clear is that the Philippines really slumped on international tourism last year and the nation is behind many of its Southeast Asian neighbors, according to a recent news article by VnExpress International.
To put things in perspective, posted below is an excerpt from the news article of the VnExpress International. Some parts in boldface…
Vietnam and Malaysia are rising tourism stars in Southeast Asia thanks to relaxed visa policies and improving infrastructure while Thailand has lost its lead due to border clashes and safety concerns.
Vietnam received its 20th millionth foreign visitor in a year for the first time at the Phu Quoc International Airport on Dec. 15, marking a milestone for its tourism sector. The full-year is expected to exceed 21 million, surpassing the previous record of 18 million achieved in 2019 before Covid.
With its 21% growth rate this year, Vietnam is regarded by the United Nations World Tourism Organization as one of the fastest-growing markets in the world.
Malaysia attracted 28.2 million tourists in the first eight months of this year, a 14.5% increase year-on-year.
The industry will be supported by stronger Chinese tourist arrivals, improving flight connectivity and the government’s ambitious “Visit Malaysia 2026” campaign, according to HSBC Global Research.
“Malaysia is on track to easily exceed its 2025 tourism target of 31.4 million tourists, making it one of the few ASEAN economies to achieve its target.
“We estimate the number of tourists is likely to exceed 40 million.”
This year, both countries have strived to ease visa polices, enhance promotion campaigns and improve airport infrastructure.
Indonesia and Laos have also seen increasing tourist numbers.
Indonesia received over 12.76 million foreign visitors in the first 10 months, a 10% increase, with Malaysia, Singapore, Australia, and India being the leading source markets. Laos received 3.8 million, a 13% increase.
Challenging year for Thailand, Cambodia – Once a tourism powerhouse in Southeast Asia, Thailand has struggled with setback after setback this year.
The crisis began in January as many Chinese tourists canceled their trips to the country following the high-profile abduction of Chinese actor Xing Xing.
Two months later a deadly earthquake in Myanmar that sent tremors across Bangkok caused widespread damage to the tourism industry.
Escalating military clashes along the Thai-Cambodian border also triggered a surge in cancellations across provinces near the fighting. Some countries warned their citizens to postpone traveling to Thailand.
Arrivals as of early December declined by 7% to 30 million. Thailand had received 40 million tourists in 2019 and 35 million last year.
Meanwhile, Cambodia’s reputation took a beating in the eyes of South Koreans due to online scams and the disappearance of hundreds of their fellow citizens who entered that country.
The South Korean government has issued warnings to its citizens to cancel or postpone non-essential travel to the Cambodian capital Phnom Penh and areas like Sihanoukville and Bokor Mountain.
Cambodia attracted only 4.75 million tourists in January-October, a decrease of 11.6%.
The Philippines received 4.7 million foreign visitors in the first 11 months of the year, a 3.02% decline due to significantly lower arrivals from South Korea and China.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines still has a lot of problems to solve regarding infrastructure, tourism promotions and domestic travel costs before it could become competitive with its Southeast Asian neighbors? If ever the Philippines fails to hit its 2025 foreign tourist arrivals target, do you think the Department of Tourism (DOT) will once again point to tourism revenues as a barometer for success? With its current standing on international tourism, do you consider the 2023-2028 National Tourism Development Plan (NTDP) of the Philippines a failure already?
Even though there already is a foreign tourism boom in Southeast Asia, the Philippines has literally been left behind by its neighbors as it attracted only 5.235 million international tourist arrivals for the period of January to November 2025, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…
VISITOR ARRIVALS in the Philippines fell by 2.16% in the first 11 months, amid a decline in tourists from South Korea and China, Tourism department data showed.
Data from the Department of Tourism (DoT) showed international tourist arrivals dropped to 5.235 million in the January-to-November period from 5.35 million in the same period in 2024.
Of the tourist arrivals, the bulk or 4.918 million were foreign tourists, while the rest were overseas Filipinos.
South Korea remained the biggest source of tourists in the first 11 months, accounting for 21.66% of the total. While 1.134 million South Koreans visited the Philippines as of November, this was a 21% decline from the 1.436 million Korean tourists a year ago.
The US was the second-biggest source of tourists, at 894,835 or 17.09% of the total as of end-November. This was 6.57% higher than last year’s 839,635 tourist arrivals from the US.
Japan was the third-biggest source of tourists, accounting for 406,794 or 7.77% of the total, 15.36% up from 352,630 a year ago.
Tourist arrivals from Australia increased by 16.17% to 268,892 in the 11-month period. Meanwhile, tourists from China fell by 16.55% to 248,339 as of end-November.
The other top markets were Canada, Taiwan, the United Kingdom, Singapore, and Malaysia, which cumulatively accounted for 793,750 of the total arrivals.
“The weaker South Korean won amid a volatile political and economic situation over the past year and slower economic growth in China, which is the world’s second-biggest economy, on top of territorial disputes partly weighed on foreign tourism numbers,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Mr. Ricafort noted that the government should improve infrastructure to make it more convenient for tourists to travel around the country.
“Challenges include the need to further expand and develop tourism-related infrastructure such as airports, seaports, accommodation facilities, and train systems, including the Metro Manila subway and toll roads,” he added.
Despite the decline in the first 11 months, Mr. Ricafort said that it is still possible for the country to surpass the tourist arrivals last year, which reached 5.949 million.
“It is still possible, considering some seasonal increase in foreign tourists during the Christmas holiday season, especially overseas Filipino workers and balikbayans, to spend the most festive time of the year, while others escape winter,” he said.
“A higher US dollar-peso exchange rate would make it cheaper for foreign tourists to come to the Philippines,” he added.
Meanwhile, Mr. Ricafort noted the growth in tourist arrivals from India and other countries, which helped “offset the decline in major traditional sources such as South Korea and China.”
India was the 11th biggest source of tourist arrivals in the January-to-November period, accounting for 85,885 or 1.64% of the total. Tourists from India increased by 17.06% from 73,369 arrivals in the same period in the previous year.
Earlier this year, the Philippines and India signed the Implementation Program on Tourism Cooperation for the years 2025 to 2028.
For his part, Colliers Research Director Joey Roi H. Bondoc said that with only 5.235 million as of end-November, it will be difficult for the country to even surpass last year’s arrivals.
“I think it will be very difficult… We may not be able to beat that or even meet that, but of course we want to end the year stronger,” he said in a phone interview.
“We see a lot of foreign tourists still in December because of the holiday season. Definitely that optimism should spill over to next year,” he added.
As for the drop in arrivals from South Korea, Mr. Bondoc attributed this to the economic downturn and political crisis in the country.
“If you look at some integrated casinos, they were initially targeting Koreans… so they are experiencing the pinch of slower arrivals from South Korea,” he said.
Mr. Bondoc said the Philippines should try to attract tourists from other markets.
For further insight about the tourism industry problem of the Philippines, watch the CNA Insider video below.
Let me end this post by asking you readers: What is your reaction to this recent development? Did you think the Philippines can still beat its 2024 record of international visitor arrivals and generate huge revenues for the economy? Do you think the current administration will be able to improve the nation’s infrastructure and make travel more efficient and convenient for all tourists? Do you think the Philippines is too expensive when it comes to air travel?
Images created with artificial intelligence (AI) applications that got shared on social media continue to fool people. It is unfortunate because AI is so accessible through apps and online, people can use them and create fake stuff that easily capture people’s attention.
For starters, look what happened in Japan when someone used generative AI to create a fake image about a bear on a road, shared it online and scared the local community. This was during the time when bear attacks in Japan increased.
Recently, deception caused by AI-generated imagery took its toll in parts of Southeast Asia. To put things in perspective, posted below is an excerpt from the technology article of VnExpress.net. Some parts in boldface…
When Thu saw a viral video purportedly showing a woman and her grandchild trapped in floodwaters in central Vietnam, she almost shared it until some things made her pause.
Thanh Thu first encountered an AI hoax last month when she believed a photo showing dozens of people clinging to rooftops during flooding in Thai Nguyen Province in the north was real. The grainy quality made the picture convincing at first glance.
“But on closer look, it made no sense as multiple helicopters were hovering just above the water yet not rescuing anyone,” she says
That experience made her more cautious. So when she saw the new flooding video, she examined it again and noticed the grandmother’s face was blurred and distorted, while nearby people appeared calm, chatting casually with water only reaching their knees.
“The footage was heart-breaking at first and gave me a strong urge to share it, but I realized in time that it was AI-generated just to attract views,” the 28-year-old in HCMC says.
In recent months, her social media feeds have been filled with photos of friends posing in destinations around the world, their faces retouched to look like models. But when she noticed that photos from various friends had identical settings, with only their faces changed, she realized the images were AI-generated.
In Hanoi, Hoang Viet, 27, has also been fooled by AI-generated content. A nature enthusiast, he once spent more than an hour watching a TikTok video about a supposed “rainbow mushroom” and even took notes for research. “Later I did more research and asked experts only to find out the species does not exist at all,” he says.
He recalls being frightened by clips of “sea monsters revived” or wild animals jumping on trampolines, all low-quality videos resembling security footage but drawing tens of millions of views. “All of them were fake.” After these experiences, he now cross-checks any information using reliable news sources or academic materials before accepting it as true.
The rise of tools such as OpenAI’s Sora, Google’s Veo 3 and Runway this year has caused a surge in AI-generated images and videos, from staged travel photos to recreated images with deceased relatives.
According to digital transformation expert Dr. Dinh Ngoc Son, AI-generated content is designed to exploit emotions and curiosity. “Sensational or unusual information always spreads faster,” he says. “As AI improves realism, the spread becomes stronger, creating an emotional whirlwind that is difficult to control.”
He says authenticity and digital ethics have become major challenges. As generative AI advances, the line between real and fake is becoming increasingly thin. He cites fabricated flood rescue clips and deepfake news anchors as examples.
In July Malaysian newspaper The Star reported that a couple in Kuala Lumpur drove 300 kilometers to a tourist destination only to find it did not exist and had been entirely produced by AI. “When users share such content without verification, it distorts public perception and undermines trustworthy information platforms,” Son says.
Cybersecurity specialist Ngo Minh Hieu, known as Hieu PC, says many people unknowingly expose personal data by uploading their photos to AI-powered editing apps. “With just a smartphone, anyone can create AI products,” the founder of the “Anti-Scam” project says. “While many use them for fun, scammers increasingly exploit them to deceive those who are less tech-savvy.”
At a national seminar on online fraud prevention in late October, Deputy Minister of Public Security Pham The Tung warned that criminals are taking advantage of AI and deepfake technologies to defraud citizens. On Oct. 28 anti-scam platform Chongluadao.vn issued a new alert about fraudsters using AI to manipulate e-commerce livestreams.
They take real sales videos, modify the sellers’ appearances to look physically disabled or ill, and re-upload them to solicit purchases from sympathizers. Scammers also create dozens of fake accounts to leave emotional comments, leveraging the bandwagon effect to deceive more viewers.
As someone who once bought products on livestreams of disabled people out of sympathy, Thu says the AI scam leaves her increasingly bewildered. “Now, when even images of those people can be faked, I do not know what to believe.”
To combat AI-driven misinformation, Son says joint action is needed from individuals, society and authorities. Individuals must improve their fact-checking skills, while the journalism and education industries should strengthen digital media literacy, he says.
Very clearly, AI has no soul and AI applications are being used for the wrong and irresponsible reasons. Not only are there tech users who use AI to make images or videos to grab people’s attention, there are criminals, fraudsters and scammers who use AI to steal money or information. This should remind you that technology can be abused a lot and affect people negatively.
An example of AI-generated imagery. (credit to VnExpress.net)
Let me end this piece by asking you readers: What is your reaction to this development? Are you able to tell if a video you saw is generated by AI? Do you think a lot of people are abusing AI to grab people’s attention and increase their social media followers? Is your local government unit using AI through public services? Do you know anyone who became a victim of scammers who used AI?
The 3rd quarter growth of only 4% the Philippines achieved has been on people’s minds a lot lately. As such, the country is at risk of falling behind its neighbors in Southeast Asia in terms of economic growth and gross domestic product (GDP) per capita, according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…
The Philippine economy is at risk of further falling behind its Southeast Asian neighbors, an economist said, noting it may take two years to catch up with Vietnam and up to 70 years to catch up with Singapore.
“(T)he Philippines could find itself lagging behind if alleged public spending issues continue to divert attention and resources away from the structural reforms needed to accelerate economic development,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.
In the third quarter, Philippine gross domestic product (GDP) grew by 4%, its slowest pace in over four years amid slower household and public infrastructure spending as the flood control scandal dampened investor and con-sumer sentiment.
In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.
“The Philippine economy is growing, but not enough to close the economic gap with other countries,” Mr. Neri said.
He noted the Philippine GDP per capita is lower compared with other economies in the region. Citing International Monetary Fund (IMF) data, he said the Philippines’ GDP per capita stood at $4,078 in 2024.
“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.
The Philippines lagged behind Singapore which had a GDP per capita of $90,674 in 2024, followed by South Korea ($36,128), Japan ($32,498), China ($13,312), Malaysia ($12,540), Thailand ($7,491), Indonesia ($4,958) and Vietnam ($4,535).
“Before the pandemic, the Philippines had a higher GDP per capita than Vietnam, but has since been overtaken. At current trends, it would take the Philippines two years to catch up with Vietnam, but that gap could increase to 13 years by 2044,” Mr. Neri said.
The BPI economist said the Philippines needs structural reforms to accelerate growth in order to close the widening gap with its neighbors.
“The current economic model of the country is not enough, as shown by the country’s inability to grow faster than 6% in recent years,” he said.
Mr. Neri said the economy has been “too reliant” on consumer spending, driven by overseas Filipino worker (OFW) remittances and the business process outsourcing industry.
“There is a need to diversify its sources of growth. The economy must improve in terms of production, especially in agriculture and manufacturing, as they will allow the economy to be more self-sufficient and to reach foreign markets. These industries have been critical to Vietnam’s success and could play a similar role for the Philippines,” he said.
However, Mr. Neri said implementing these reforms will be hard if the government lacks focus.
“Public spending issues divert fiscal resources and policymaking focus away from long-term development priorities. Efforts to strengthen safeguards against potential issues in government spending are essential, enabling the country to work on structural reforms that could improve the economy,” he said.
Let me end this post by asking you readers: What is your reaction to this recent development? What do you think should the government do to accelerate economic growth?
United States President Donald Trump and new Japanese Prime Minister Takaichi Sanae met in Tokyo yesterday and officially America and Japan reaffirmed its alliance, according to the English news report of NHK and other sources.
To put things in perspective, posted below is an excerpt from NHK’s English news report. Some parts in boldface…
Japanese Prime Minister Takaichi Sanae and US President Donald Trump are taking part in a series of talks and appearances during their first summit in Tokyo.
Takaichi welcomed Trump at the State Guest House in Tokyo Tuesday morning. They received a salute from a ceremonial guard of honor with Japan’s Self-Defense Forces. Soon after, the two leaders sat down for their first face-to-face meeting.
Takaichi said, “I am determined to restore Japan’s dynamic diplomacy to protect Japanese national interests. I am ready to promote further collaboration between Japan and the United States toward our shared goal of achieving a free and open Indo-Pacific. I want to realize a new golden age of our Japan-US alliance in which both nations become stronger and more prosperous.“
Trump said, “I have always had a great love of Japan and a great respect of Japan, and I will say that this will be a relationship that will be stronger than ever before, and I look forward to working with you and on behalf of our country. I want to just let you know anytime you have any questions, any doubt, anything you want, any favors you need, anything I can do to help Japan, we will be there, we are an ally at the strongest level.”
The two leaders have signed documents to cement a deal reached as a result of tariff talks.
Trump meets abductee families – After the meeting, Trump met families of Japanese citizens abducted by North Korea.
He said, “I met the families before, and I’m with them all the way, and the US is with them all the way, and with Japan and the prime minister.“
Trump also said he’s had the issue in mind since meeting late Prime Minister Abe Shinzo. He told the families the US will do everything in its power to help.
Japan’s government says at least 17 Japanese nationals were kidnapped by North Korean agents in the 1970s and ’80s. Five of them returned in 2002, but what happened to a dozen others remains unknown.
Takaichi seeks to strengthen security, economic ties with US – Ahead of the meeting on Tuesday morning, Takaichi wrote on X that she is looking forward to “having a fruitful discussion on how we can further strengthen our great Alliance.”
Trump has complained that the burden for security shouldered by US allies is insufficient. The measures include revising three national security documents, including the National Security Strategy, by the end of next year.
Japan had been aiming to increase defense spending and related expenditures to two percent of the GDP in fiscal 2027. Takaichi will likely tell Trump that Japan will instead achieve that goal in the current fiscal year.
Takaichi wants to use the occasion to build a personal relationship with Trump. She is also hoping to enhance bilateral cooperation across a wide range of fields, including security and economy.
For additional coverage of Trump’s visit in Japan, watch the selected YouTube videos below…
Let me end this piece by asking you readers: What is your reaction to this development? Are you feeling confident that US-Japan relations will improve under Trump and Takaichi? Considering the geopolitical interests of both leaders, do you think US-Japan will help turn the tide against Communist China with regards to disputes on the sea of Southeast Asia? Do you think illegal immigrants, the LGBTQ mob, the woke extremists and Islamists are now feeling uneasy about invading Japan and America?
Startups here in the Philippines secured $86.4 million in equity funding during the first half of this year which translates to a very sharp drop of 55% when compared to a year earlier, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
PHILIPPINE startups secured $86.4 million in equity funding in the first half of 2025, down 55% from a year earlier and lagging most of its Southeast Asian neighbors, according to a report by Kickstart Ventures, Inc., the corporate venture capital arm of Globe Telecom, Inc., and Singapore-based business news platform DealStreetAsia.
The Philippines raised about P4.91 billion from 15 disclosed deals in the six-month period, lower than the P10.86 billion ($191 million) recorded in the same period last year.
By deal value, the country trailed Singapore ($1.21 billion), Vietnam ($275 million), and Malaysia ($196 million). It only surpassed Indonesia ($78 million) and Thailand ($10 million), while Cambodia did not disclose figures.
Across Southeast Asia, startup equity investment fell by 20.7% year on year to $1.85 billion, the lowest in six years.
Joan Yao, general partner at Kickstart Ventures, said funding deals slowed after digital activity peaked in 2021 and 2022 at the height of coronavirus lockdowns.
“I think to some extent, as the effects of COVID died down… [digital] activity became more balanced between online and offline,” Ms. Yao said during a media briefing on Wednesday.
Philippine startups had raised $456 million and $481 million in the first halves of 2021 and 2022, respectively, before declining sharply as global investors scaled back.
Ms. Yao cited the tight monetary policy in the United States, when the US Federal Reserve hiked interest rates from March 2022 through July 2023 to curb inflation.
“A lot of the global investors that were coming to invest in the Philippine market or Southeast Asia pulled back a little bit from their investment activities because of the higher cost of capital,” she said.
The report said investors have become more selective, favoring companies with stronger governance and clearer paths to profitability.
Let me end this post by asking you readers: What is your reaction to the recent developments? Were you surprised to see the Philippines’ startups attracting much less equity funding from global investors? What do you think the government should do to convince global investors to invest more in startups here in the Philippines?
While Spain and other nations of Europe are struggling with the high number of illegal migrants and foreign nationals who keep on trespassing into their respective territories, the Philippines deported more than one thousand four hundred foreigners in the first half of 2025 over a series of violations of immigration law, according to a news article by the Philippine News Agency (PNA).
To put things in perspective, posted below is an excerpt from the first PNA news article. Some parts in boldface…
The number of foreign nationals who were deported during the first half of the year doubled compared to last year, the Bureau of Immigration (BI) reported Friday.
According to Commissioner Joel Anthony Viado, data from the bureau’s deportation and implementation unit (DIU) revealed that a total of 1,422 foreign nationals were deported due to immigration violations during the period. The BI recorded 717 deportees during the same period in 2024.
Chinese nationals topped the list with 957, followed by 231 Vietnamese, 41 South Koreans, 41 Malaysians, and 37 Burmese.
Viado said majority of the deportations were foreigners found to be illegally working in Philippine offshore gaming operators (POGOs) in the country despite the ban.
“Our strengthened deportation protocols follow the directive of the President to act swiftly and remove foreigners who abuse our people’s hospitality. We will continue expediting the deportation of foreign nationals who violate our laws,” the BI chief added in a statement.
The BI earlier reported improvements in deportation protocols, including fast-tracking clearances in partnership with the National Bureau of Investigation, immediate resolution of cases suspected to be filed under the ‘demanda me’ scheme, regular coordination with embassies for swift issuance of travel documents, and opening of a new holding facility for arrested aliens.Meanwhile, Viado also reported the arrest on July 22 of two Sudanese nationals found to be undocumented in San Carlos City, Pangasinan.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the national authorities will be able to apprehend and deport more illegal aliens who are still on the lose all over the Philippines? Do you think the authorities can double the number of deportees by the end of this year?
By pointing to a variety of factors, the Asian Development Bank (ADB) recently announced that the economy of the Philippines will grow by 5.6% this year, according to a news article by the Philippine News Agency (PNA). The ADB recently released its latest economy report.
To put things in perspective, posted below is an excerpt from the first PNA news article. Some parts in boldface…
The Philippines is expected to post the second highest economic growth in Southeast Asia this year despite the downgrade in growth outlook due to external headwinds, a report released by the Asian Development Bank (ADB) showed.
In its Asian Development Outlook July 2025 report released on Wednesday, the ADB said Philippine economic growth is expected to settle at 5.6 percent this year.
The growth outlook for the Philippines is the second highest in Southeast Asia, next to Vietnam’s 6.3 percent. Indonesia is projected to grow by 5 percent, Malaysia by 4.3 percent, Singapore by 1.6 percent, and Thailand by 1.8 percent.
For 2026, growth is expected to slightly pick up to 5.8 percent.
The ADB’s latest projection, however, was lower than its 6 percent for 2024 and 6.1 percent for 2025 economic growth forecast amid external headwinds. The Philippine economy grew by 5.4 percent in the first quarter of the year.
“Domestic demand grew 6.7 percent, supported by easing inflation and monetary policy. However, net exports dragged on growth as brisk imports outpaced exports,” the ADB said. It added that manufacturing index (PMI) recovered slightly to 50.7 in June from 50.1 in May.
“Consumer sentiment was positive in the near term. Unemployment was low at 3.9 percent in May, and remittance growth of 3.0 percent helped sustain household spending,” it said.
The ADB, however, said that business confidence softened amid heightened global policy uncertainties.
According to the ADB, economic forecasts for most countries in Southeast Asia have been downgraded for 2025 and 2026 due to the continuing global growth slowdown and increased trade uncertainty.
“Weaker external conditions have hurt business and consumer sentiment and threaten to disrupt investment in the subregion,” it said.
“Except for Indonesia, the largest economy in the subregion, all Southeast Asian economies are expected to post weaker growth in the next two years.”
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think it is still possible for the economy of the Philippines reach 6% GDP growth by the end of 2025?
Based on the latest international tourism statistics and analysis for 2025, the Philippines is clearly failing to attract foreign tourists when compared to its Southeast Asian neighbors, according to a news article by VnExpress.
To put things in perspective, posted below is an excerpt from the VnExpress news article. Some parts in boldface…
An online debate has erupted on social media as users wonder why the Philippines, with its rich nature, culture, and cuisine, is being overlooked by foreign tourists in favor of destinations like Vietnam and Thailand.
Thea Tan, a Filipino, posted on her X account in May expressing frustration over the Philippines’ underwhelming tourism numbers despite offering what other countries dream of: breathtaking beaches, vibrant culture, incredible food, and the warmest locals.
“So, why are tourists still choosing Thailand, Vietnam, and Bali over us?” she asked.
The post quickly went viral, accumulating over 9,000 likes and hundreds of comments.
In the first quarter of the year, Malaysia topped the list of most-visited Southeast Asian countries, with 10.1 million arrivals, followed by Thailand (9.55 million), Vietnam (6 million), and Singapore (4.3 million). By April, the Philippines had only welcomed 2.1 million visitors.
In 2024, the country saw 5.9 million foreign tourists, falling short of the government’s target of 7.7 million and far behind its regional neighbors including Cambodia, which had 6.7 million visitors.
Many online users, like Tan, argue that the Philippines is not considered a top priority destination in ASEAN.
“We are tiring out tourists with poor infrastructure and complicated transportation,” Tan noted.
Even locals find domestic travel expensive and difficult, let alone for foreign visitors, according to comments on the post.
“The Philippines has beautiful beaches, delicious food, and friendly people, but it lacks roads, reliable airports, and public transportation. Most importantly, the prices here are too high,” one local shared.
Another netizen pointed out, “In all the countries you’ve mentioned, their capitals are also tourist destinations. Manila, on the other hand, is boring for tourists. We don’t have decent museums or historical tours, and moving around in Manila is not easy either.”
A netizen added, “The government isn’t investing in quality tourist facilities and infrastructure like our neighboring countries. That’s where we’re lagging behind.“
Recently, the Philippines was ranked as the most dangerous destination by U.K. financial comparison site HelloSafe in a survey dismissed by the Philippines’ tourism experts as biased and misleading.
Victor Lim, president of the Federation of Filipino-Chinese Chambers of Commerce and Industry, emphasized that the Philippines must improve its infrastructure and enhance safety measures to establish itself as a leading tourist destination in Southeast Asia, Philstar reported.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Department of Tourism and its strategic partners should get together and come up with hard adjustments to make the Philippines more attractive to foreigners? What do you think are the five biggest problems of the tourism industry of the country? Do you consider tourism-related awards crucial to the Philippines’ ability to attract visitors from around the world?
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Author Carlo Carrasco 