July 12, 2013 Hanoi,Vietnam

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1 The 6th Dialogue between Secretary General of ASEAN and Federation of ese Chambers of Commerce and Industry in ASEAN (FJCCIA) July 12, 2013 Hanoi,Vietnam

2 is the principal investor in ASEAN(2011), in terms of net inflow of FDI from extra-asean. Increasing number of FJCCIA members obviously shows ese companies strong commitments in ASEAN. ASEAN foreign direct investments net inflow from extra-asean(2011) Taiwan 1, % UAE 1, % 30, % ASEAN FDI (net inflow) From extra-asean Korea 2, % Cayman 2, % Unit: Upper: million US$ Lower: share(%) US$ 87,840 million in 2011 Hong Kong 4, % USA 5,783 6% EU 18,241 21% China 6,034 7% 15,015 17% Note 1: FJCCIA stands for the Federation of ese Chambers of Commerce and Industry in ASEAN. 2: Total numbers include regional chambers(e.g,cebu in the Philippines, Danan in Vietnam, East Java, Bandon and Bali in Indonesia). The member companies of FJCCIA was 4,447 In 2010., 4944 in 2011, 5,034 in : Approved base except Indonesia(Realization base) and Singapore(Commitment base) (Source) Prepared by JETRO based data from ASEAN Secretariat The number of member companies of FJCCIA Country June 2013 Brunei 3 Cambodia 144 Indonesia 631 Lao PDR 56 Malaysia 568 Myanmar 107 Philippines 674 Singapore 772 Thailand 1,479 Viet Nam 1,213 Total 5,647 The outstanding position of ese investment in each ASEAN members by ranking in 2012(*3) Country Rank Share Thailand % Vietnam % Malaysia % Philippines % Singapore 2 6.0% Cambodia % Indonesia % (Source) Prepared by JETRO based data from JCC in ASEAN countries. 2

3 ese Government has increased ODA for ASEAN in critical situations after economic crises in 1997 and 2008, respectively. In addition to government level cooperation, FDIs in ASEAN have been steadily increasing (exceeded those in China in 2010 and 2011) (Unit: million US dollars) 7,000 6,000 ASEAN ODA from 5,000 4,000 3,000 2,000 1, ese FDI to ASEAN and China 20,000 15,000 10,000 Asian currency crisis ASEAN bursting of the IT bubble CHINA Lehman's fall 5, (Sources) Prepared by JETRO from Ministry of Finance Balance of Payments Statistics, OECD databese 3

4 ASEAN Export (2012) 802, % 129, % Intra- ASEA N 322, % ASEAN Import (2012) 780, % 129, % Intra- ASEA N 322, % Unit: Upper:: million US$ Lower: share(%) (Note) Data are adjusted by IMF, might be different from the statistics of each countries. (Source) IMF Direction of Trade Statistics, May,2013 ese manufacturers in ASEAN have steadily been increasing the local procurement ratio either in each country or from other ASEAN countries. Finished or semi-finished products are exported to overseas market, including, China and Europe. Average ratio of raw materials and parts procurement sources (N=948) Export destinations (N=1,167) ASAEN 8.3 Local 43.5 (Source) Survey of ese-affiliated Firms in Asia and Oceania(2012/JETRO) Taiwan/Korea 2.8 China % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 39.6 ASEAN 32.4 USA 3.9 China Europe % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ASEAN China Europe USA India 4

5 Customs Procedures Industrial HRD for Global Supply Network Standards, Conformance and Labeling Protection of IPRs Mekong- Industry Government Dialogue ASEAN+1 FTAs Utilization of FTAs New Subjects 5

6 Customs Procedures Customs Procedures Abolishment of FOB value in the CO Form D, ASEAN-Korea, ASEAN- and ASEAN-Australia and New Zealand in instances when WO5, CTC and Process Rules are used (Decision by 25 th AFTA Council Meeting) Steady progress on domestic process in each ASEAN Member State for full implementation of The ASEAN Harmonized Electrical, Electronics Equipment Regulatory Regime (AHEEERR) Mekong- Industry and Government Dialogue New Subjects Concrete actions of Mekong countries to conduct Single Stop Inspection at major land border points for enhancing connectivity (Various actions including the decision by Second Vice Foreign Ministers Meeting on East-West Economic Corridor (EWEC) Development on 16 May) Utilizing FJCCIA s suggested list on Information Technology Agreement (ITA) to WTO/ITA negotiation through forwarding information to their respective relevant agencies for the negotiations (Decision by Coordinating Committee on ATIGA (CCA), on 2 July) -FOB: Free on Board - CO: Certificate of Origin - WO: wholly obtained or produced - CTC: Change in Tariff Classification - AFTA: ASEAN Free Trade Area 6

7 FJCCIA will submit new requests to ASEAN Secretariat in The requests will be consisted from a) remaining issues which need further continuous efforts and b) new issues. Early elimination of Non-Tariff Barriers/Measures (NTBs/NTMs) which would recognized as bottlenecks for improving business competitiveness Coordination of liberalization level and scope in AMSs, as well as liberalization of all kinds of manufacturing support services under ASEAN Framework Agreement on Trade in Services (AFAS) Introduction of ASEAN Business Travel Card scheme by referring to ongoing APEC Business Travel Card system Coordination of taxation and social security system to avoid double taxation and duplicated social security payment such as pensions in each AMS toward freer movement of ASEAN business persons Steady negotiation on Regional Comprehensive Economic Partnership (RCEP) toward development of more business-friendly framework Introduction of Advance ruling on import valuation in all AMSs Copyright 2010 JETRO. All rights reserved. Reproduction without permission is prohibited. 7

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