Doing business in ASEAN

By Frencie L. Carreon
"When you invest in any ASEAN country, you are in effect investing in Asia."

This is the now the campaign of the Association of Southeast Asian Nations (ASEAN) Secretariat, as it encourages businessmen all over the Southeast Asian region to explore limitless possibilities, and build businesses and business relations not only in one's home country, but even in other Southeast Asian countries.
In doing business in ASEAN member countries, traders will have access to all major markets through ASEAN's network of regional economic linkages.
The benefits in getting involved in trade in the region are like reaping benefits from an ever-growing market of more than 520 million people.
ASEAN offers every businessman, especially those within the region itself, a huge consumer base for products and services. And with the standardization of customs procedures that are undertaken by its member-countries, plus the harmonization of standards, mutual recognition arrangements for conformity assessment, quality benchmarks and business practices, trade in goods and services are is sure to grow hence allowing the investor’s business to reach new heights.
AS the ASEAN Economic Community moves on in the pursuit of its economic integration goals, which include among others, the elimination of tariffs, free movement of professionals, freer movement of capital, and a streamlined customs clearance procedure, the ASEAN Secretariat is presently conducting a more vigorous campaign for more investors within the ASEAN region.
Building an ASEAN Economic Community by 2015
ASEAN officials in Jakarta, addressing some members of the press in Southeast Asia, elaborated on the ASEAN Economic Community’s (AEC) significance as it is envisioned to increase regional economic prosperity and stability, as well as reduce the development gaps among member states. AEC will accordingly be achieved with a single and coherent plan, which is the AEC Blueprint, to identify the priority measures and actions under clear targets and timelines to be undertaken to establish the AEC by 2015.
Every Southeast Asian is a stakeholder, and has thus a shared responsibility in building an AEC. In establishing the AEC, ASEAN as the institution shall act in accordance with the principles of an open, outward-looking, inclusive and market-driven economy that is consistent with multilateral rules and adherence to rules-based systems for effective compliance and implementation of economic commitments.
FREE TRADE AGREEMENTS
Forging free trade agreements (FTAs) is a key strategy being used now for ASEAN to gain greater market access into trading partners as well as attract investments to ASEAN.
The ASEAN Free Trade Area (AFTA) agreement, for instance, has brought in tariffs in ASEAN member states to an all-time low. For the Brunei Darussalam, Indonesia, Malaysia, the Philippines (BIMP), Singapore, Viet Nam, and Thailand, the tariff range is between zero and five per cent for most goods traded. However, this range was achieved by Laos and Myanmar this year, and hopefully by Cambodia in 2010. The goal of ASEAN is to have zero tariffs in a large part of its trade two years from now.
FACILITATING TRADE WITH ASEAN SINGLE WINDOW
It will probably be in 2012 when the ASEAN Single window will fully be implemented, and this is projected to speed up the clearance of shipments and the release of goods by customs authorities in the ASEAN region.
Quang Anh Le, Assistant Director of the Bureau for Economic Integration and Finance, explained the benefits of facilitating trade vis-à-vis the ASEAN Single Window.
This mechanism actually eases up what would have been a bureaucratic system in customs clearance. Through synchronizing the interventions of the government agencies, traders, shippers, forwarders, transport operators and other parties, customs authorities aim to clear containerized shipments within half-hour.
From this cut-down on time and transaction costs, businesses are set to benefit with greater predictability in administrative customs procedures. Hence, regional consumers may enjoy more secure and timely delivery of goods at lower costs.
As per provisions in the 2005 Agreement to Establish and Implement the ASEAN Single Window, and its 2006 Protocol, the ASEAN Single Window is set for implementation in Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand by the end of this year, and in Cambodia, Lao PDR, Myanmar and Viet Nam in 2012.
“There are challenges to realize the ASEAN Single Window visions,” Quang Anh Le said, as he enumerated them. These are “putting into place legal and regulatory requirements for an enabling legal environment for cross border transactions; formalizing works and outputs of the Working Group; and formalizing processes and processing of the ASW environment.”
2008 is a significant year, for it is within this period that the aforementioned six member-states, are set to activate the National Single Windows.
On August 11 this year, Dr. Sri Mulyani Indrawati, coordinating minister for economic affairs and Minister of Finance of Indonesia, launched the second phase of the Indonesia National Single Window. The Philippines is yet to launch its own version by the last quarter of 2008.
SPELLING SUCCESS
There are many opportunities to invest in ASEAN, and there are many privileges as well.
With the ASEAN Investment Area aiming to promote greater and more liberal investments within the Southeast Asian region, ASEAN investors now enjoy national treatment when investing in the manufacturing sector of all ASEAN countries (with few exceptions, ‘though—a number that is also lessening as ASEAN proceeds towards greater economic integration).
POSTSCRIPT:
There is a lot more to know about investing in ASEAN. Hopefully, this space in Zamboanga Today could be your added window to information. (Frencie L. Carreon)