Southeast Asian Country "Asean"

Amity International Business School

Amity International Business School 2012-2015

Doing Business with Association of Southeast Asian Country

BY : FacultySunil Kr Ahirwar Ms. Supriya Lamba


Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.

Brunei then joined on 7 January 1984, Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN

INTRODUCTION ASEAN


• To accelerate economic growth, social progress & cultural development in the region

• To promote regional peace & stability based on the rule of law & the principles of the United Nation Carter

OBJECTIVE ASEAN


Philippines officially know as the Republic of the Philippines Southeast Asia situated in the western Pacific Ocean. It consist of 7,107 island that are categorized broadly under three main geographical division• Luzon• Visayas• Mindanao

A founding member of ASEAN, the Philippines is a middle-income ASEAN Member State but is today considered the new tiger in Asia amid strong growth.

PHILIPPINES


The ASEAN Business Awards Philippines aims to recognize outstanding local enterprises and use it as a platform to spread knowledge about the ASEAN Economic Community; to inspire and rally Filipino businesses to participate and become key players in the broader market; and to strengthen over-all competitiveness of the Philippines in the ASEAN Economic Community

OBJECTIVE


• Textile Products• Real Estate• Retail• Travel & Tourism• Restaurant & Bar• Logistic• Agriculture• Manufacturing• Photography

BUSINESS OPPORTUNITIES


DEMOGRAPHY

ECONOMY

• Land Area: 300000 sq. km• Population: 95.8 Million The Philippines has a population growth

rate of 2.04%, one of the highest in Asia.

• GDP 424.4 BILLION US$, 6.6% Growth Rate• Tourist Arrival 3.92 Million• Currency: Philippine Peso• FDI 2.8 Billion USD$• Unemployment: 7.0%


• Capita: Manila• Language: Filipino & English• International Airport: 12• Major Sea Port: 21 Major Ports

OTHER INFORMATION

GDP BY SECTOR• Agriculture: 12.3%• Industry: 33.3%• Services 54.4%


Around 92 percent of the Filipinos are Christians making it the world's third-largest Christian nation. Among the Christians, 83 percent belong to the Roman Catholic Church, 2 percent to the Philippine Independent Church, and 10 percent to various Protestant denominations. Some 5 percent of the Filipinos are Muslim and live primarily in parts of Mindanao and the Sulu archipelago. Filipino culture blends the indigenous traditions of the Philippines with the Hispanic and American cultures, and also have distinct cultural traits of the Chinese, the Indonesians and the Indians.

CULTURES


The Balance of Payments (BOP) is a systematic record of a nation's total payments to foreign countries, including the price of imports and the outflow of capital and gold, along with the total receipts from abroad, including the price of exports and the inflow of capital and gold.

The Philippines' balance of payments (BOP) surplus narrowed in 2013 on the back of the uncertainty caused by the US Federal Reserve's withdrawal of its economic stimulus.Data from the Bangkok Sentral Pilipinas (BSP) show the country's BOP surplus dropped by 45 percent to $5.085 billion last year from $9.236 billion in 2012, narrowly missing the central bank's target of $5.3 billion for 2013. In December alone, the surplus fell to $419 million, or half the $837 million the month before. "While slightly lower than the projected surplus of $5.3 billion announced in December, [the full-year figure] was higher than the earlier projection of $4.4 billion developed in May and announced in June,"

BALANCE OF PAYMENT


• Exports $53.98 Billion• Exports Goods: Electronic Products, Transport Equipment,

Garments, Copper products, Petroleum products, Coconut oil, Fruits• Export Partner: Japan 19.0%, United States 14.2%, China 11.8%,

Hong Kong 9.2%, South Korea 5.5%, Thailand 4.7%

• Imports $61.71 Billion• Imports Goods: Electronic products, Mineral fuels, Machinery &

Transport equipment, Chemical , Plastic, Textile fabric• Import Partner: US 11.5%, China 10.8%, Japan 10.4% South

Korea 7.3%, Singapore 7.1%, Thailand 5.6%, Saudi Arabia 5.6%

EXPORT-IMPORT COMMODITIES


Region: East Asia & PacificIncome category: Low incomePopulation: 52,797,319GNI per capita (US$): 835DB2014 rank: 182DB2013 rank: 182*Change in rank: 0DB 2014 DTF: 42.38DB 2013 DTF: 41.72Change in DTF: 0.68

MYANMAR


With a population that exceeds 60 million, Myanmar (or Burma) is the 24th most populous country on Earth. It has the highest literacy rate in Southeast Asia, and is rich in important resources, with the 10th largest natural gas reserves as well as oil, copper, gold, jade, coal, tin, nickel, timber and a large production of rice, beans and pulses. The country is experiencing enormous growth (6.9 percent in the medium term, and rising, according to the World Bank) compared to its neighbours (5.2 percent, and falling) with rising household incomes, and foreign direct investment growth of 50 percent year-over-year. Moreover, Myanmar has experienced a substantial rise in volume and price of exports, both in commodities and manufactured goods such as gas, rice, garments, etc.


The country is one of the poorest nations in Southeast Asia, suffering from decades of stagnation, mismanagement and isolation. The lack of an educated workforce skilled in modern technology contributes to the growing problems of the economy.[The country lacks adequate infrastructure. Goods travel primarily across the Thai border (where most illegal drugs are exported) and along the Irrawaddy River. Railways are old and rudimentary, with few repairs since their construction in the late 19th century. Highways are normally unpaved, except in the major cities. Energy shortages are common throughout the country including in Yangon and only 25% of the country's population has electricity.

ECONOMY


MYANMAR RANK


MYANMAR RANKS ON DOING BUSINESS TOPICS


BUSINESS INDICATORS



BUSINESS OPPORTUNITIES AND MAJOR INDUSTRIES

• 1. Business opportunities in Wood industry- With the presence of ECO forestry policy, hardwood like Teakwood, Padauk, and Yamane are very sustainable. Similarly Cane and Bamboo are VERY plentiful too.

• 2. Business opportunity in Farming industry– In Myanmar, much of the countryside are usually farmed producing plenty of pulses, rice, vegetables, and fruits, including grapefruit, avocados, tangerines, and mangoes, etc.


• 3. Investment opportunity in the Fishing Industry– Fishing is well-known in Myanmar as there are numerous Prawn and Fish farms running in the country. The Andaman Sea, for example, is rich with “marine life.” Pearls are plentiful too.

• 4. Myanmar offers diverse delights for Foreign Investors- Similarly, Myanmar has high hills, tall mountains, and river to offer plenty opportunity to start a business here.

• Travel agencies, for example, may take tourists for trekking, sight-seeing, and even mountain climbing expeditions around the snow-capped mountains on the hill, while others can cruise on a luxury yatch on the warm and deep blue Ayeyawady River in the south.


• 5. Myanmar is among the safest countries in the world– Myanmar is the ideal holiday destination for many tourists as it is considered to be one of the SAFEST countries in the world having FRIENDLY people around.

• 6. Myanmar has HUGE reserves of natural resources– Myanmar is blessed with HUGE reserves of natural resources such as rice, oil timber, gas, precious gems, and fish among others.The BEST things about these natural reserves are that they have remained UNTOUCED over all the years. So, early foreign investors are likely to take the full advantage of these natural resources for HUGE profits.


• Land boundaries 4,863 km• Coastline 3,219 km

THAILAND INDICATOR

THAILAND

ASEAN has been and will continue to be a cornerstone of Thailand’s foreign policy. Thailand attaches great importance to enhancing cooperation within ASEAN frameworks to build trust and confidence among ASEAN Member States, as well as to promote peace, stability and prosperity in the region.


• Thailand has a long history of international trade. Beginning in the 15th to 18th centuries. The country's first significant trade treaty was

• Bowring Treaty in 1855 with Britain. Shortly after that, it also signed treaties with 14 other countries including the United States, France, Russia, Sweden, Spain, and Japan.

• Today, the United States, Japan, and the European Union continue to be its top trading partners, absorbing 52.6 percent of all exports in 1999 and supplying 48.8 percent of total imports in the same period

• Thailand's major exports are rice, tapioca products, cane sugar and molasses, and rubber for agriculture; chemicals, polymers, and plastics for the manufacturing industry; and gypsum, natural gas etc.

HISTORY OF TRADING THAILAND


• Thailand Foreign TradeLatest: US$2.2 billion for AugustPrevious: US$1.5 billion for July

• Thailand GDPLatest: 0.4% for 2014Q2Previous: -0.6% for 2014Q1

• Thailand Industrial ProductionLatest: -2.7% for AugustPrevious: -5.2% for July

• Thailand Private ConsumptionLatest: -0.8% for AugustPrevious: 0.2% for July

BUSINESS INDICATOR


BOP


MAJOR INDUSTRIES

• Agriculture in 2010 contributed 10.4 percent to the overall GDP, but employs 42.4 percent of the overall workforce

• Electronics Services contributes 44 percent to Thailand's GDP and employs 37.9 percent of the total workforce in 2010.

• Tourism: the country welcomed 10.35 million visitors, and collected a total of US$19.76 billion in international tourism receipts in 2010

• Automobile grew by 64 percent in 2010, with 1.6 million cars produced. Industry contributes 45.6 percent to the country's GDP and employs 19.7 percent of the total workforce



1. Restaurant

2. Jewelry

3. Web design

4. Real estate

6. Automobile and machinery

7. Healthcare services

8. Freelance writing

9. Agriculture

10. Garment and textile


LEGAL STRUCTURE• Constitutional Law :relationship between the Government and

citizens in regards to fundamental rights and responsibilities.• Acts: An act is the most common known law and is made by

parliament. Examples of Acts are the Copyright Act, Trademark Act and Investment promotion Act.

• Royal Decree: A Royal decree is promulgated by the Executive Branch normally though the Minister of the concerned Ministry authorized under a specific Act to set forth the details from time to time under the guidelines of the Act. For example a Royal Decree to revise the tax rates under the Revenue Code.

• Emergency Degree: An emergency Decree is enacted by the executive branch, though the cabinet in an emergency to protect the country from imminent harm but subject to subsequent confirmation of the Parliament.


SINGAPORE

Singapore plays an active role in working with other ASEAN members to develop sound competition policies and best practices for the region.

Language: there are 4 official languages English, Tamil, Mandarin Chinese and Malay.

Land Area: 714.3 square kilometers (275.8 sq. miles)

COUNTRY INDICATORS


BUSINESS INDICATOR


MAJOR INDUSTRIES

• Tourism Industry: • Bio medical Sciences • Logistics • Banking & Finance• Chemicals• Construction



• Agriculture:• Biotechnology:• Fast foods and snacks:• Transport:• Electronics:• Online Marketing:• Freelance writing:• Laundry:• Automobiles and spare parts:• Financial Services:


LEGAL STRUCTURE

The following business structures are available for registration: • Sole Proprietorship• Partnership• Company• Limited Liability Partnership• Limited Partnership


FINANCIAL STRUCTURE

• The Singapore financial system is highly developed, and well regulated and supervised. Singapore is one of the world’s largest financial centers, built around a core of domestic and international banks, and also offers a wide range of non-bank services. The authorities have given strong emphasis to integrity and stability in finance and to compliance with international standards, and have addressed most recommendations made by the 2004. Singapore’s current regulation and supervision are among the best globally. The Monetary Authority of Singapore (MAS) oversees the entire financial system, and has the analytical and operational capabilities to do so effectively.


A federal constitutional monarchy located in Southeast Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometers (127,350 sq. mi) separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and East Malaysia (Malaysian Borneo). Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with Singapore, Vietnam, and Indonesia.

MALAYSIA


BALANCE OF PAYMENT

The current account balance posted a lower surplus of RM16.0 billion (6.1 per cent of GDP at current prices) for the period of April - June 2014 as compared to RM19.8 billion in the preceding quarter.


• Travel agency• Fashion• Foods and snacks• Oil and gas• Local taxi service• Smartphone and PC repairs• International Business



The country is multi-ethnic and multi-cultural, which plays a large role in politics. The constitution declares Islam the state religion while protecting freedom of religion. The government system is closely on the Westminster parliamentary system and the legal system is based on common law. The head of state is the king, known as the Yang di-Pertuan Agong. He is an elected monarch chosen from the hereditary rulers of the nine Malay states every five years. The head of government is the Prime Minister.

MALAYSIA CULTURE


• Electronic equipment• Petroleum & liquefied natural• Wood & Wood products• Palm oil• Rubber• Iron & Steel Products• Plastics• Vehicles• Textiles

MALAYSIA EXPORT-IMPORT COMMODITIES


A founding member of the Association of Southeast Asian Nations (ASEAN) and the Organization of Islamic Cooperation (OIC), the country participates in many international organizations such as the United Nations, the Asia-Pacific Economic Cooperation, the Developing 8 Countries, and the Non-Aligned Movement (NAM). It has chaired ASEAN, the OIC, and the NAM in the past. A former British colony, it is also a member of the Commonwealth of Nations. Kuala Lumpur was the site of the first East Asia Summit in 2005.

MALAYSIA FOREIGN RELATION


Since independence, Malaysia has had one of the best economic records in Asia, with GDP growing at an average 6.5% per annum for almost 50 years. The economy has traditionally been fueled by its natural resources, but is expanding in the sectors of science, tourism, commerce and medical tourism. Today, Malaysia has a newly industrialized market economy, ranked third largest in Southeast Asia and 29th largest in the world. It is a founding member of the Association of Southeast Asian Nations, the East Asia Summit and the Organization of Islamic Cooperation, and a member of Asia-Pacific Economic Cooperation, the Commonwealth of Nations, and the Non-Aligned Movement.

ECONOMIC REVIEW OF THE COUNTRY


ASEAN member, Vietnam has worked hard to secure peace and reconciliation among Southeast Asian nations, which were once deeply divided by war. Vietnam was the first Indochinese country to join ASEAN, and its move helped end confrontation between the Indochinese bloc and ASEAN. Vietnam has also helped ASEAN partner with non-regional players — including China, Russia, India and the EU.

VIETNAM


ECONOMY OF VIETNAM

The economy of Vietnam is a developing planned economy and market economy. Since the mid-1980s, through the Đổi Mới reform period, Vietnam has made a shift from a highly centralized planned economy to a socialist-oriented market economy which use both directive and indicative planning. Over that period, the economy has experienced rapid growth.


EXPORT-IMPORT COMMODITIES

• Export 128.9 Billion• Export Goods: Clothes, Shoes, Marine products, Crude oil,

Electronic, Wooden products, Rice, Machinery

• Imports 121.4 Billion• Imports Goods: Machinery & Equipment, Petroleum product, steel

products, Raw material for the clothing & shoe industries


GROSS DOMESTIC PRODUCT

Gross Domestic Product (GDP): In 2004 Vietnam’s GDP was US$45.2 billion. Per capita gross national income was US$550. However, based on purchasing power parity (buying power for a basket of goods without regard for market exchange rates), Vietnam’s per capita GDP was

approximately US$2,700. In 2004 the contributions to GDP by sector were as follows: agriculture, 21.8 percent; industry, 40.1 percent; and services, 38.2 percent. Reflecting Vietnam’s hybrid economy, industry ownership was mixed, as indicated by percentage of output, as follows: state-owned, 40 percent and declining; privately owned, 25 percent, but employing four times as many workers as the state-owned sector; and foreign-owned, 35 percent.





Brunei Darussalam is the Chair of ASEAN from January to December 2013.

This is the fourth time that Brunei Darussalam has chaired ASEAN, having previously been the Chair in 1989, 1995 and 2001. In 2013, Brunei Darussalam will chair the 22nd ASEAN Summit on 24-25 April 2013 and the 23rd ASEAN Summit and other related summits on 9-10 October 2013.

BRUNEI


GEOGRAPHY

• Southeast Asian country consisting of two unconnected parts

• Total area of 5,765 square kilometres

• Neighbours: Malaysia, South China Sea

• Capital Bandar Seri Begawan

• Climate: Tropical Equatorial ; Hot, Humid, Rainy (Average annual temperature is 26.1 °C)


GOVERNMENT

• Gained independence on 1st January, 1984 from UK• Govt. Type: Constitutional Sultanate (Malay Islamic Monarchy)• Legal System is a mix of English Common Law and Islamic Law• Chief of state: Sultan and Prime Minister Sir HASSANAL (since 5

October 1967)• Monarch is both the chief of state and head of government• Council of Cabinet Ministers appointed and presided over by the

monarch• No Elections: The Monarch is hereditary


ECONOMY• Crude oil and Natural Gas production account for about 90% of

its GDP• Fourth largest producer of oil in South-east Asia• Depends heavily on imports of products like Agriculture, Motorcars

and Electrical Products• Imports 60% of its food requirements, which around 75% of those food

imports come from the ASEAN countries

• GDP PPP (2011) - $21.24 Billion• GDP Real Growth Rate (2011) – 1.9% ; 2.6% in 2010• GDP Per Capita (2011) - $50000• Unemployment Rate (2010) – 2.7%• Inflation Rate at CPI (2011) – 2%


MAJOR INDUSTRIES• Petroleum• Petroleum Refining• Construction• Liquefied Natural Gas

•Agricultural & processed food products•Textiles, garments & accessories •Consumer goods •Drugs & pharmaceuticals •Auto parts •Milk products •Building Materials

SECTORS OF COOPERATION


LAOS

Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and People's Republic of China to the northwest, Vietnam to the east, Cambodia to the south, and Thailand to the west. Its population was estimated to be around 6.5 million in 201


ECONOMICEconomic growth and an increased availability of goods. However, the 1997 Asian Financial Crisis, coupled with the Lao government's own mismanagement of the economy, resulted in spiralling inflation and a steep depreciation of the kip, which lost 87% of its value from June 1997 to June 1999. Tighter monetary policies brought about greater macroeconomic stability in FY 2000, and monthly inflation, which had averaged about 10% during the first half of FY 1999, dropped to an average 1% over the same period in FY 2000.

In FY 1999, foreign grants and loans accounted for more than 20% of GDP and more than 75% of public investment.

http://en.wikipedia.org/wiki/Kip_(currency)


GOVERNMENT

•It is Communist State.•The Executive Branch includes:–A President–A Chairman–A Council for Ministers–An 11 member Politburo–A 55 member Central Committee


MAIN EXPORTS

• Gold and copper• Electricity• Wood• Clothes• Coffee• Agriculture

MAIN IMPORTS

• Fuel• Food• Machinery• Cars

• GDP $17.66 Billion• GDP Growth 8.3%• Inflation 4.3%• FDI 294.4%• Unemployment 2.5%


Cambodia is situated on the southern part of the Indochina Peninsula of southeast Asia, bounded by Vietnam in east , Laos in north and Thailand in west, and close to Gulf of Thailand, which has a 460 kilometres of coastline. The central and south of Cambodia is plain, east, north and west of Cambodia is surrounded by mountains and highlands, and most of these area is covered by forests. Part of Mekong River flow through the east of Cambodia, is about 500 kilometres. Lake Tonle Sap is the biggest natural fresh water lake in Southeast Asia,

CAMBODIA


GOVERNMENT

Officially a multiparty democracy, in reality "the country remains a one-party state dominated by the Cambodian People's Party and Prime Minister Hun Sen, a recast Khmer Rouge official in power since 1985. The open doors to new investment during his reign have yielded the most access to a coterie of cronies of his and his wife, Bun Rany." Cambodia's government has been described by Human Rights Watch's Southeast Asian Director, David Roberts, as a "vaguely communist free-market state with a relatively authoritarian coalition ruling over a superficial democracy


FOREIGN RELATION

The foreign relations of Cambodia are handled by the Ministry of Foreign Affairs under H.E. Hor Namhong. Cambodia is a member of the United Nations, the World Bank, and the International Monetary Fund. It is a member of the Asian Development Bank (ADB), ASEAN, and joined the WTO on 13 October 2004. In 2005 Cambodia attended the inaugural East Asia Summit in Malaysia. On 23 November 2009, Cambodia reinstated its membership to the International Atomic Energy Agency (IAEA)


MAJOR INDUSTRY IN CAMBODIA

• Tourism• Garments• Construction • Rice milling• Fishing • Wood and wood products• Rubber • Cement • Gem mining • Textiles


• Currency - Cambodian Riel (KHR).• Exchange Rate- 1 US Dollar = 4,192.90 Cambodian Riel

1 KHR = 0.0002385 USD.• Growth dropped below 7% in 2008 as a result of the global

economic slowdown.• Garment industry - Employs 320,000 people & contributes

more than 85% of Cambodia's export.• Revenues: $1.274 billion.• Expenditures: $1.592 billion.• Current account balance:

ECONOMY OF CAMBODIA


EXPORTS• Exports: $4.616 billion.• Export Goods: Clothing, Timber, Rubber, Rice, Fish, Tobacco &

Footwear.

Main export partners:

US 58.1%, Germany 7.3%, UK 5.2% , Canada 4.6%, Vietnam 4.5%.

IMPORTS• Imports: $6.424 billion f.o.b.• Import goods: Petroleum products, cigarettes, gold, construction

materials, machinery, motor vehicles, pharmaceutical products. Main import partners: Thailand 23.1%, Vietnam 16.9%, China 15.0% Hong Kong 10.4%, Singapore 7.5%, Taiwan 7.2%, South Korea 4.8% .


Sunil Kr AhirwarAmity International Business SchoolAmity University Noida 125Email- [email protected] +91(0)9871836819

mailto:[email protected]

Education

Southeast Asian Country "Asean"