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EU-ASEAN BUSINESS NETWORKS
Your Gateway to South-East Asia
European Association for Business and Commerce in Thailand
GATEWAY TO ASEAN
1999
1998
1997
1996
1995
1967
1977
1984
1993
2003
2007
2008
2009
2015
ASEAN formedIndonesiaMalaysia
PhilippinesSingapore
Thailand
Free flow ofGoodsServicesInvestmentSkilled labourFreer flow of capital
ASEAN Economic Community (AEC)
ASEAN Charter
PTA
Myanmar and Laos joined
AFTA
Vietnam joined
AFAS
Brunei Darussalam joined AIABali Concord II
Cebu Declaration
Cambodia joined
The Association of Southeast Asian Nations (ASEAN)
GATEWAY TO ASEAN
ASEAN Population: 625 million (9% of the world's population); Median age: 28 years EU Population: 500 million (7.3% of the world’s population); Median age: 40 years in EU
ASEAN GDP: USD 3.3 trillion; GDP Growth (2013): 5.2%EU GDP: USD 16.6 trillion; GDP Growth (2013): 0.1%
Foreign Direct Investment (FDI): US$115 billion The EU is the biggest provider of Foreign Direct Investment into ASEAN. EU FDI is 22% of the total in 2013
ASEAN Economic Community (AEC): moving towards a single market4 Pillars: Single Market and Production Base, Competitive Economic Region, Equitable Economic Development , Integration into the Global Economy
Free Trade Agreements in place: China (ACFTA), Japan (AJCEP), Korea (AKFTA), India (AITIG), Australia-NZ (AANZFTA), and EU has concluded a FTA with Singapore and is negotiating FTAs with several other ASEAN countries (Vietnam, Thailand, Malaysia, Indonesia)
ASEAN key facts
GATEWAY TO ASEAN
Year of entry into ASEAN
Population
Million
GDP
$Billion
GDP per capita
% of US level
Real growth of GDP, 2003 – 13
%
Brunei 1984 0.4 17 78 1.1
Cambodia 1999 15.1 15.5 2 7.8
Indonesia 1967 249.9 868.3 7 5.8
Laos 1997 6.8 10.9 3 7.8
Malaysia 1967 29.7 312.4 20 5
Myanmar 1997 62.8 59 2 8.6
Philippines 1967 98.4 272 5 5.4
Singapore 1967 5.4 295.7 103 6.3
Thailand 1967 67 387.2 11 3.8
Vietnam 1995 91.7 171.2 4 6.4
ASEAN key facts
Source: HIS, McKinsey Global Institute Analysis
GATEWAY TO ASEAN
ASEAN key economics
GATEWAY TO ASEAN
EU - ASEAN trade performance
GATEWAY TO ASEAN
EU - ASEAN Business Networks
European Association for Business and Commerce in Thailand
WHO &
WHERE
EU BUSINESS NETWORKS IN THE REGION
Attracting EU businesses into the region and supporting them in their market entry activities; Increasing EU Business’ leverage towards the ASEAN Governments.The projects
Increase and improve export and investment of EU businesses to the ASEAN regional market.Objectives
European businesses in Europe, in particular SMEs, with an interest in ASEAN markets. Existing European companies in ASEAN which need to increase their presence and visibility.
Target group
WHAT
Joint expertise, knowledge and experience of well-established European business support organizations with an extensive network in ASEAN and the EU.Expertise
ASEAN ROADSHOWVILNIUS, LITHUANIAMAY 12, 2015
PHILIPPINES – THE RISING TIGER OF ASIA
Philippines - Country facts
Economic overview
• GDP growth 2014 – 6.1%. Government target 6-7% in 2015-2016.
• GDP is heavily dependent on the service sector– Service sector 57.1%, industry 37.1%, agriculture 11.8% of GPD in 2012• Consumption-driven economy - 69.4% of GDP is formed by
private consumption– Fueled by overseas remittances amounting to $24.4 billion and the
Business Process Management industry $18.4 billion (2014)– Other growth sectors are manufacturing and construction (7.5% growth
in 2014), and real estate services and financial intermediation -> 6% growth rate in the overall services sector in 2014
• Total exports $61.8 billion, imports $64.5 billion
Investment climate
• Investment grade ratings (Fitch, S&P, Moody’s, Japan, Korea)
• FDI $6.2 billion in 2014, six times higher than in 2010 • Government incentives– Board of Investment - Investment Priority Plan– Philippine Economic Zone Authority (PEZA) for export-oriented
activities
• Foreign ownership– Foreigners can invest up to 100% equity in corporations,
partnerships and other entities in the Philippines, except in areas included in the Foreign Investments Negative List (FINL)
Lithuania-Philippines Bilateral Trade
Areas of opportunity• Energy/Renewables & Environmental technologies• ICT & IT/BPM• Food/Agriculture• Infrastructure & Transport • Maritime• Tourism• Healthcare/Medical & Pharmaceuticals• Consumer Goods/Retail• Financial Services• Manufacturing• Mining• Automotive
Areas of opportunity• Information Technology and Business Process Management
– Philippines is world no. 1 in voice services, no. 2 in non-voice services– Metro Manila region world no. 2 outsourcing/offshoring destination after
Bangalore– One of the fastest growing industries in the Philippines, CAGR 26% (2006-
2013)
• Environment / Renewable Energy– National Renewable Energy Program aims to triple the yearly production
capacity of renewable energy by 2030, currently 5030 MW. Program relies heavily on private sector.
– Solid waste management systems being developed according to the implemented act RA 9003. Aim to reach recycling ratio of 25 percent.
– Lots of untapped potential in the treatment of hazardous and medical waste.
Areas of opportunity• Infrastructure
– Public infrastructure budget increased by 17,7% for 2014 (US$7,04bn). – Construction industry the fastest growing in Asia on medium-term after
Myanmar. Value US$21bn (2014), year-on-year growth rate 47%– Public-Private-Partnership projects
• Healthcare & Pharmaceuticals– Department of Health operates with the biggest budget among
government departments. National health insurance act was signed in July 2013 to insure every Filipino, currently covers ~83% of the population
– The revenue of pharmaceuticals industry is expected to double to US$8bn by 2020
Doing business in the Philippines
• Strengths– Strong macroeconomic
fundamentals– Educated, young, and
English-speaking labor force
– Improving governance– Renaissance of
manufacturing– Overseas remittances– Strategic geographic
location: launching pad for AEC
Doing business in the Philippines
• Strengths– Strong macroeconomic
fundamentals– Educated, young, and
English-speaking labor force
– Improving governance– Renaissance of
manufacturing– Overseas remittances– Strategic geographic
location: launching pad for AEC
• Challenges– Corruption– Red tape and Bureaucracy– High rate of poverty– Inefficient infrastructures– Low rates of investments
to GDP – Low Foreign Direct
Investments
EU-Philippines Business Network
• Partnership of eight chambers of commerce operating in Manila
EPBN Services
• Advocacy and market access– 14 industry-led sector committees & ad hoc support
• Business support–Market studies, business matching, new market entry
support, business development• Business missions–Ministerial & private sector business delegations
• Government relations– Embassies and Philippine government agencies
