ASEAN Economic Community: Progress, Opportunities and Challenges - PowerPoint PPT Presentation

ASEAN Economic Community: Progress, Opportunities and Challenges Tran Dong Phuong Director Sectoral Development Directorate ASEAN Secretariat

Milestones 2015 2007 Adoption of 2003 Cebu 1997 the AEC 1967 2008 Bali Concord Declaration Blueprint 2025 Adoption of II – + Birth of ASEAN Formal the ASEAN ASEAN Charter AEC establishment AEC as the Vision 2020 of the ASEAN goal for REI Blueprint Economic 2015 Community

AEC at a Glance 6 th largest economy in the world, 3 rd in Asia. A combined GDP of US$2.57 trillion in 2016. 3 rd largest market in the world Total population of over 635 million. IMF – WEO, ASEAN Secretariat, and 3 UN World Population

AEC at a Glance Major Trading Partners 30.0% Total ASEAN trade stood at US$ 23% 25.0% 2.2 trillion in 2016 with intra- 20.0% ASEAN trade comprising the 16% 15.0% largest share . 10% 10% 9% 10.0% 5.0% 0.0% ASEAN was one of the largest ASEAN FDI from Dialogue Partners sources of FDI flows in 2016. The 40.0% region attracted US$ 123 billion 29% 30.0% in Foreign Direct Investment in 21% 20.0% 2016. 15% 11% 9% 10.0% 0.0% 4

AEC 2015: Key Achievements 1. More liberalised market and reduced trade costs - Virtual tariff elimination and gradual services liberalisation - Simplified cross-border trading processes (Customs, ROO, Trade Facilitation, Standards & Conformance) 2. Enhanced mobility of skilled people - Eight MRAs have been concluded: engineering services, nursing services, architectural services, framework for surveying qualifications, medical practitioners, dental practitioners, framework for accounting services, and tourism professionals. 5

AEC 2015: Key Achievements Improved investment regimes and business- 3. enabling environment - ASEAN Comprehensive Investment Agreement (ACIA) entered into force in 2012: commitments to liberalise, facilitate, promote, and protect cross-border investment. - Adoption and implementation of common frameworks, standards and mutual cooperation in various areas: agriculture, finance, competition policy, IPR, consumer protection, and SME development. 2. Improvements in transportation and connectivity - Establishment of ASEAN Open Skies - Completion of the ASEAN Highway Network missing links - Transport Facilitation 6

AEC 2015: Key Achievements 5. Narrowing the development gap - Initiative for ASEAN Integration (IAI) Work Plan to assist CLMV countries 6. Better integration into the global economy - Six free trade and comprehensive economic partnership agreements - Continue RCEP negotiation and ASEAN-Hong Kong FTA in 2016 - Review/upgrade the existing FTA 7

AEC Blueprint 2025 Adopted by Leaders at the • 27 th ASEAN Summit 22 Nov 2015 Part of ASEAN 2025: • Forging Ahead Together 1. KL Declaration 2. ASEAN Community Vision 2025 3. APSC Blueprint 2025 4. AEC Blueprint 2025 5. ASCC Blueprint 2025 8

AEC Blueprint 2015 and AEC Blueprint 2025 AEC BP 2015 (2008-2015) AEC BP 2025 (2016-2025) • Single Market and • Highly Integrated and Production Base Cohesive Economy • Competitive Economic • Competitive, Innovative Region and Dynamic • Equitable Economic • Enhanced Connectivity Development and Sectoral Cooperation • Integration into the Global • Resilient, Inclusive and Economy People-Oriented, People- Centred ASEAN • Global ASEAN 9

New features/elements • More emphasis on trade facilitation • Stronger and renewed emphasis on sectoral cooperation and cross-cutting issues. • Increased engagement with stakeholders • Increased focus on innovation and productivity- driven growth • Enhancement of and inclusion of ‘micro enterprises’ to the SME Development agenda • From ‘integration into the global economy’ to Global ASEAN

AEC Blueprint 2025 Highly Integrated & Competitive, Innovative Enhanced Resilient, Inclusive, Global ASEAN Cohesive Economy & Dynamic ASEAN Connectivity & People-Oriented & Sectoral People-Centered Cooperation ASEAN • • • • • Trade in Goods Effective Transport Strengthening Strategic • • Trade in Services Competition Policy ICT the Role of approach • • • Investment Consumer Protection E-commerce MSMEs towards external • • • Environment Strengthening IPR Energy Strengthening economic • • Financial Cooperation Food, the Role of the relations • • Integration, Productivity-Driven Agriculture, Private Sector Review and • Financial Growth, Innovation, and Forestry Public-Private improve existing • Inclusion, and R&D, Technology Tourism Partnership ASEAN FTAs and • • Financial Stability Commercialisation Healthcare Narrowing the CEPs • • • • Facilitating Taxation Cooperation Minerals Development Enhance • • Movement of Good Governance Science Gap economic • • Skilled Labour & Effective, Efficient, &Technology Contribution of partnerships Business Visitors Coherent and Stakeholders on with non-FTA DPs • • Enhancing Responsive Regional Engage with Participation in Regulations, and GRP Integration regional and • GVCs Sustainable Efforts global partners • Economic Support to the Development multilateral • Global Megatrends trading system • and Emerging Trade- Engagements related Issues with regional and global institutions * New elements are underlined

Enhanced Connectivity and Sectoral Cooperation Objective: To enhance economic connectivity in various • sectors, and to further integrate and cooperate in key sectors that complement efforts towards creating an integrated and sustainable economic region , contributing to ASEAN’s overall competitiveness. Elements: Transport; Information and Communications • Technology; E-commerce; Energy; Food, Agriculture, and Forestry; Tourism; Healthcare; Minerals; Science and Technology * New elements in blue 12

Implementation AEC Blueprint 2025 • sectoral work plans • national-level implementation Implementation • partnership arrangements Mechanism, Resources, Communications, Review Monitoring and Review • Periodic review, mid- and end- term evaluation Characteristics (5) • Regular monitoring (enhanced – inc. outcomes and impact) and report of progress Resource mobilisation Elements Communication Strategic Measures (153) 13

Opportunities • Strengthening of sectoral and cross-sectoral coordination • Enhanced monitoring and evaluation • S&T in the AEC; links with innovation and productivity

Challenges • Timely completion of AEC commitments; completion of priority measures carried over from previous years • Ensuring synergies/linkages between regional initiatives and national policies/laws/regulations/initiatives, where necessary • Providing adequate support and resources for implementation, and addressing other implementation bottlenecks • Enhancing communication/outreach, and stakeholder engagement

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