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ASEAN Facts and ASEAN Business Figures

ASEAN (Association of Southeast Asian Nations) is a political and economic regional organisation of 10 Southeast Asian countries, formed on 8 August 1967 by Malaysia, the Philippines, Singapore and Thailand. Brunei Darussalam became its 6th member on 7 January 1984, barely a week after gaining independence. In 1995, Vietnam became ASEAN’s 7th member. Laos and Myanmar (Burma) joined two years later as Cambodia did become a member again 2 years later, in 1999.

ASEAN Economic Community initiative is to achieve by the end of 2015:
A solitary market and a production base, enabling a free flow of products, services, knowledge, labour, capital as well as financial investments throughout the region.
In 2007, ASEAN embraced the ASEAN Economic Community Blueprint, which did have a completion target of 2015 to 2020. As of October 2013, regarding 80% of the ASEAN Economic Community Blueprint have actually been implemented.

The ASEAN Economic Community is specified by 4 columns:
1.    Producing a single market and also the production base
2.    Boosting competitiveness,
3.    Promoting equitable financial growth and
4.    Further integrating ASEAN with the worldwide economy.

ASEAN is not a monolithic market and does have immense regional differences in economic scale and GDP and variety that prolongs in society, language and also religion. Although ASEAN is becoming much more integrated, business ventures should be aware of the widely varying markets in local preferences and cultural sensitivities and not rely on a one-size-fits-all strategy.

ASEAN as one economy would undoubtedly be 7th largest around the world with a combined gross domestic product (GDP) of $2.4 trillion (2013). And if growth patterns would continue: by 2015-2020, it could become the 4th biggest global economy.

ASEAN’s potential market with over 600 million individuals is larger than the European Union (EU) or North America (US+CA).

ASEAN has the globe’s 3rd labour force – that remains reasonably young – after People’s Republic of China and India.

ASEAN is one of the most open economic regions in the world, with a total merchandise export of over $1.2 trillion – nearly 54% of entire ASEAN GDP – and with 7% of global exports, it has become the 4th – largest exporting region. By now export-processing zones, once dominated by China, have been established across entirely ASEAN.

ASEAN industry has expanded and is now home of many globally competitive companies; it is now 7th –largest host of the Forbes Global 2000 and includes over 225 of the world’s companies with a higher than $1 billion yearly revenue, or 3% percent of the world’s overall. In 2013 ASEAN did also attract more foreign direct financial investment than China ($128 billion versus $117 billion). In addition, to bring in multinationals, ASEAN has come to be a launching pad for brand-new companies; the area now represents 38% of Asia’s market for going public (IPO).

ASEAN is a growing centre of consumer demand as income development has actually continued to be solid considering that 2000, with ordinary annual real gains of greater than 5 per cent. Already some 67 million homes in ASEAN states are part of the “consuming course” as well as this number can almost double to 125 million homes by 2025.

Main export products of ASEAN countries - annual volume and percentage of country total (x mio $) [2012]

Image: Main export products of ASEAN countries - annual volume and percentage of country total (x mio $) [2012]

ASEAN Agriculture – production overview by country

Image: ASEAN Agriculture – production overview by country

Sources:
•    The Observatory of Economic Complexity (OEC)
•    The World Factbook – CIA
•    Chairman’s Statement of the 23rd ASEAN Summit, Bandar Seri Begawan, Brunei Darussalam, 9 October 2013.
•    Nay Pyi Taw Declaration, 24th ASEAN Summit, 11 May 2014.
•    ASEAN Integration and the Private Sector, speech by ADB Vice-President Stephen Groff, 23 June 2014 in Berlin, Germany.
•    ADB publication ASEAN 2030: Toward a Borderless Economic Community.
 


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