FedEx: 85% of APAC SMEs plan Europe expansion

A new FedEx survey shows that 85 percent of small- and medium-sized enterprises in the Asia Pacific region plan to begin or expand trade with Europe in the next 12 to 24 months, reflecting growing confidence in the Asia–Europe trade corridor.

The findings, released in November by Federal Express Corp., are based on a September 2025 poll of 850 SMEs across 13 APAC markets and more than 1,200 SMEs across nine European countries.

The report indicates that 76 percent of APAC SMEs recorded higher export volumes to Europe over the past year, with the United Kingdom at 42 percent, Germany at 40 percent, and France at 38 percent emerging as the top European markets driving business growth.

On the European side, 87 percent of SMEs are maintaining or increasing trade activity with APAC, with China at 55 percent, Japan at 36 percent, and South Korea at 24 percent cited as the most promising growth markets over the next two years.

The optimism aligns with sustained momentum along the Asia–Europe trade lane, which logged 30 consecutive months of growth as of August 2025.

FedEx attributes the strengthening APAC-to-Europe flow to robust European consumer demand, strong price competitiveness of Asian goods and services, and expanding strategic opportunities—factors identified by 68 percent of surveyed APAC firms.

European SMEs, meanwhile, are drawn to APAC markets because of strategic prospects, advanced logistics services, and the advantages offered by favorable trade agreements.

Despite the positive outlook, several obstacles persist, with 86 percent of APAC and 78 percent of European SMEs reporting that regulatory changes, complex customs procedures, and market volatility hinder cross-border expansion.

To overcome these challenges, 30 percent of APAC firms and 41 percent of European firms want digital tools that enhance supply chain transparency, reduce delivery times, and streamline shipping operations.

Additionally, 27 percent of APAC and 41 percent of European respondents seek improved customs expertise to navigate shifting trade regulations and manage compliance costs.

FedEx is responding to these demands by expanding its logistics network, including five new weekly flights from Asia to Europe launched in November and a Vietnam–Europe route that shortens delivery times by one day.

The company now operates 26 weekly flights connecting APAC to Europe, with express shipments reaching major European destinations in as little as 48 hours.

Its integrated air-and-road network—supported by major hubs in Paris, France, and Liège, Belgium—connects more than 550 pick-up and delivery stations across 45 countries and territories and processes more than 2 million packages daily.

“The strong confidence among Philippine SMEs in expanding trade with Europe is a clear signal of the country’s growing role in global commerce,” said Maribeth Espinosa, FedEx Philippines managing director.

“As international trade dynamics evolve, local businesses are seizing new opportunities beyond borders,” she said.

“At FedEx, we are committed to fueling this momentum by delivering reliable logistics, intuitive digital tools, and adaptive trade expertise that help businesses navigate shifting regulations and thrive in the dynamic Asia–Europe corridor.”

FedEx continues to invest in digital tools to simplify cross-border commerce, including electronic trade document uploads and the FedEx Import Tool, which provides customs clearance tracking, real-time alerts, and downloadable documentation.

The FedEx Go-To Europe Hub also serves as an online resource offering trade insights, regulatory guidance, and multimedia tools to support APAC businesses expanding into Europe.

The survey was conducted online by Milieu Insight across 13 APAC markets—including Australia, China, the Philippines, and Vietnam—and by Mortar Research across nine European markets including the United Kingdom, Germany, and France.