ASEAN ECONOMIC COMMUNITY (AEC)
2
ASEAN
Political Security
Community (APSC)
ASEAN
Economic
Community (AEC)
ASEAN
Socio-Cultural
Community (ASCC)
3 PILLARS OF ASEAN
AEC BLUEPRINT
• Single Market & Production base
• Competitive Economic Region
• Equitable Economic Development
• ASEAN’s integration into the Global Economy
AEC PRESENTS GOLDEN GROWTH OPPORTUNITIES
AEC is enjoying a golden period. AEC+3 integration would increase regional prosperity.
JP EU US AEC CHINA
0.7 1.9
2.5
5.2 6.2
REAL GDP GROWTH OF AEC
2014 2015 2016F
4.6 4.6 4.9 5.2 Average of 10 countries
Source : IMF, 2016 / OECD, 2015
2016F-2020F (Average)
GDP GROWTH RATE
GDP GROWTH RATE
FORECAST 2016-2020
(AVERAGE)
China Japan Korea
BEHIND THE GROWTH OF AEC
190 million
in 2012
400 million
in 2020
GROWTH OF
MIDDLE CLASS
By 2020 the middle class
population of AEC will more than double to 400 million Source : Nielsen Forecasting
PRODUCTION HUB
FOR +3 COUNTRIES
2012 2014
Japan
South Korea
China
Greenfield FDI into ASEAN
Source : Financial Times from fDi Markets
All are busy attempting to
shape the future of regional
economic integration with
ASEAN as AEC+3
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UNEVITABLE INTEGRATION TOWARDS AEC+3 ’S PROSPERITY
REGIONAL CONNECTIVITY
CHINA’s “ONE ROAD, ONE BELT” INITIATIVES
ASIAN INFRASTRUCTURE INVESTMENT BANK
Fund for Silk Road Policy , USD 156 billion
Source: ADB, UN (2014)
Road Rail Port
JAPAN ALLIANCE THROUGH INVESTMENT
Significant increase of investment and trade in the region
Funding over next 5 years, USD 110 billion
Nhat Tan Bridge Low-Int. Loan
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ECONOMIC INTEGRATION
MARKET SIZE
(million people)
China Japan Korea AEC
over 2,178
over 634
AEC+3 GDP
17.8 USD Trillion
27.6 USD Trillion
in 2013 in 2020(F)
Source : IMF’s forecast Source : CIA, Jul2015
A lot of opportunity to capture in the AEC+3 region
KEY CHALLENGES
While businesses are right to be excited about AEC+3, the region also presents challenges
DISRUPTIVE TECHNOLOGY INCREASED COMPETITION
3.4 5.1 5.5 7.15 7.2 14.65 6
8.5 10 13 13.5
28
Vietnam Singapore Philippines Malaysia Thailand Indonesia
2015 Estimate 2017 Potential
E-COMMERCE MARKET SIZE
Source: eMarketer, A.T. Kearney Analysis
(Unit: USD Billion)
SOURCING AND RETAINING HUMAN CAPITAL
51
60
68
49
40
32
Low-skilled
Semi-skilled
High-skilled
Impact No impactSURVEY OF LABOR MOBILITY Impact of AEC on ASEAN Employers
Source: International Labour Organization 2014
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QUESTIONS FOR RESHAPING A NEW PARADIGM
FOR GROWTH
What opportunities does the AEC+3 present to business?
What are the most effective models and practices for entering
new market?
What can company do to ensure the success of new ventures
in different Asian market?
How are technological development transforming the ways in
which traditional business operate?
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PROGRAM BY:
AEC+3 BUSINESS FORUM 2016 :
RESHAPING A NEW PARADIGM FOR GROWTH
Date : 16th
March 2016 Venue : Plaza Athenee Hotel
AEC+3
BUSINESS FORUM
2016
AEC+3
TRADE & INVESTMENT
CONSULTING BOOTHS
AEC+3
BUSINESS MATCHING
2016
MOU SIGNING:
AEC+3 CROSS-BORDER
COLLABORATION
Main topics:
• Human capital
management
• Digital technology
• Market integration
First MOU platform that build multilateral collaboration in AEC+3 regional trade
Event
1
Event
4 Event
3 Event
2
This forum will be the
platform for business sector
seeking up-to-date strategic
knowledge and identify best
practices for sustainable growth in this region
The One-stop consulting
booths to serve you the
insightful advice of cross-
border trade and
investment from KBank
and business experts from
CLMVI countries
This event will empower
business network through
building strategic
partnership, with over 300
business matching deals
Highlight industries :
• Food & beverage
• Construction material
• Pharmaceutical .
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