ASEAN: Regional Trends in Economic Integration, Export ... - USITC

Abstract
This report describes trends in regional integration, export competitiveness, and inbound
investment for six industries within the Association of Southeast Asian Nations
(ASEAN): computer components, cotton woven apparel, hardwood plywood and
flooring, healthcare services, motor vehicle parts, and palm oil. The six profiled
industries are a subset of 12 priority sectors that ASEAN members identified in 2004 in
order to promote regional integration. The members created a regional “Roadmap for
Integration” (Roadmap) for each priority sector, and while these Roadmaps have
promoted tariff reductions and streamlined certain administrative procedures, their
success in promoting regional integration has been mixed. In general, economic factors
and national government policies have had more influence than the Roadmaps over
regional industrial structures. ASEAN members tend to view each other as competitors
for inbound investment and jobs, and the members have no legally binding means to
enforce compliance with the objectives of the Roadmaps.
The ease of importing and exporting varies widely among ASEAN members. Procedures
for trading are relatively easy to complete in Singapore, Thailand, and Malaysia, but very
difficult in Laos and Cambodia. The ASEAN Single Window (ASW) is ASEAN’s most
visible effort to facilitate trade among members. By enabling the rapid exchange of
standardized data among members’ customs agencies, it has the potential to bolster trade
and support the emergence of intraregional supply chains. However, development of the
ASW has proceeded slowly.
The quality of logistics services—such as customs brokerage, freight forwarding, and
express delivery—also varies substantially from member to member. Logistics services
are world-class in Singapore but poor in Laos, Cambodia, and Burma. In a number of
ASEAN countries, restrictive regulations hamper the delivery of high-quality logistics
services.
While large gaps persist among ASEAN members in e-commerce proficiency, the last
decade has seen improvements throughout the region. Vietnam, in particular, has made
significant progress in both e-commerce infrastructure development and legal reform.
The ASEAN Secretariat has expressed a strong commitment to supporting wider
adoption of e-commerce in the region and helping members to adopt new e-commerce
laws, but has contributed less significantly to e-commerce infrastructure development.
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