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

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BOX 3.1 Computer components: Profile of ASEAN Integration FDI plays a major role in computer components production in ASEAN. Some of the most notable examples of integration among ASEAN member countries center on direct investment links between the countries. Between 2004 and 2008, Singapore was the leading global source of direct investment in the computer hardware industry within ASEAN (as measured by number of investments), with the majority of this investment going to Malaysia and Thailand. a Increasingly, Singapore is also investing in Vietnam and, through these investment linkages, is improving Vietnam’s competitiveness and more fully integrating the region in computer components production. The Vietnam Singapore Industrial Park (VSIP), which is a joint venture between several Singaporean investors and a Vietnamese state-owned corporation, is an example of this bilateral investment link. As FDI in manufacturing in Vietnam has grown in recent years, industrial parks providing a wide range of services to these investors have become common. VSIP is one of the largest providers of these services, operating four large industrial parks in Vietnam. These parks have attracted approximately 400 investment projects with a combined total investment capital of $2.4 billion, and VSIP is currently expanding the parks to meet further demand. b An official from a U.S.-based electronic components firm operating a plant in one of the VSIP sites explained why the park has been so attractive to his company. According to this source, the fact that the upper management of VSIP is Singaporean is an asset because they are very comfortable working with multinational companies and addressing their needs. Meanwhile, VSIP’s Vietnamese management is a government entity, which, in this firm’s experience, has meant that the park staff is highly skilled at walking investors through all of the required government paperwork and obtaining the proper licenses. This combined management structure is very valuable to the firm and was cited as a key factor in the firm’s success in Vietnam. c VSIP’s success with investors from outside the region is one example of intra-ASEAN linkages improving member countries’ ability to compete globally in the computer components industry. a VSIP Web site, http://www.vsip.com/vn/ (accessed April 14, 2010). b Industry representative, interview by USITC staff, Binh Duong province, Vietnam, March 11, 2010. c Ibid. Trade Facilitation, Logistics Services, and E-Commerce Trade Facilitation In general, the computer components industry has expressed concerns about customs transparency and adherence to international norms—concerns that are shared by multinational firms across many industries. However, due to the nature of the industry and its status as a desired source of investment in many countries, firms in this industry mentioned fewer trade facilitation problems than firms in many other industries. Because neither duties nor nontariff measures are common in the computer components industry, the aspects of trade facilitation that are most important to this industry center on reducing the administrative burden of customs procedures. This has led to a competitive form of integration of customs procedures whereby ASEAN countries tend to adopt similar trade facilitation measures in order to remain attractive destinations for investors. The major components-producing countries in ASEAN all use free trade zones (FTZs) as a means of simplifying trade-related administrative procedures for firms. These FTZs have contributed to what one industry official called “market-forced harmonization,” 96 that is, an environment in which countries’ policies have converged because of investor demand for faster and simpler customs procedures rather than as a result of any centralized integration effort. FTZs simplify and speed up customs procedures for firms by placing customs officers onsite within the zone, with a focus on providing fast and 96 Industry representative, interview by USITC staff, Singapore, March 4, 2010. 3-16
efficient service to tenants. Despite its status as a world leader in trade facilitation and the fact that it currently offers most customs services online, Singapore continues to offer several FTZs in addition to its normal trade facilitation measures. Components firms operating in Malaysia and Thailand indicated that FTZs in those countries were important to them in attracting their investment and that operating in FTZs had helped them bypass time-consuming paperwork. 97 Similarly, in Vietnam, components firms tend to be located in industrial parks (some of which are FTZs) that compete with one another on the level of service provided to their tenants. These services typically include on-site customs facilities and assistance with obtaining preclearance for imports of materials. 98 Despite the competitive environment fostered by ASEAN FTZs in terms of facilitating trade, industry officials expressed some concerns regarding customs procedures in the region. Most often mentioned was the issue of customs transparency and predictability in Thailand, especially in the customs post-audit process. More generally, each of the sources expressed the view that improved customs harmonization throughout the ASEAN region, such as through the ASEAN Single Window, would be somewhat helpful. In the meantime, however, they stated that there were few problems in working with each country individually. Logistics Services Officials of computer components firms in ASEAN countries that were interviewed did not express any specific concerns regarding logistics (beyond basic infrastructure needs in some areas). Computer components firms generally rely on third-party logistics providers for both imports of their inputs and exports of their products. 99 Some computer components are air-shipped, making logistics easier. E-Commerce Many large components firms prefer to use electronic systems to manage their supply chains and work with suppliers. However, suppliers’ ability to adopt adequate supporting technology to implement these electronic systems varies, especially since the network of suppliers with experience working with multinational firms is not well-established in some countries. One of the tools that multinational components firms use to promote e- commerce is RosettaNet. RosettaNet is a consortium of electronics firms throughout the supply chain “working to create, implement, and promote open process standards for e- business.” 100 The associated software allows for linkage of enterprise systems between suppliers, customers, and logistics providers. 101 In the broader computer industry, participants include AMD, Dell, Hitachi, and Intel. 102 These firms often encourage suppliers to implement RosettaNet in order to expedite transactions and improve the accuracy of communication between companies. 103 ASEAN member countries have also 97 Industry officials, interviews by USITC staff, Singapore, March 4, 2010 and Bangkok, Thailand, March 16, 2010. 98 Industry representative, interview by USITC staff, Binh Duong province, Vietnam, March 11, 2010. 99 Industry representatives, interviews by USITC staff, Singapore and Ho Chi Minh City, Vietnam, March 4–11, 2010. 100 Ernst, “Global Production Networks in East Asia’s Electronics Industry and Upgrading Prospects in Malaysia,” 2004, 137. 101 Intel Web site, “RosettaNet” (accessed April 26, 2010). 102 Ernst, “Global Production Networks in East Asia’s Electronics Industry and Upgrading Prospects in Malaysia,” 2004, 138. 103 Intel Web site, “RosettaNet” (accessed April 26, 2010). 3-17
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United States International Trade C
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U.S. International Trade Commission
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Abstract This report describes tren
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CONTENTS―Continued Chapter 5 Wood
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CONTENTS―Continued Tables—Conti
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Acronyms 3PL ACCSQ ACDD ACE ACIA AD
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LPI MDF MFN MOU MRA MTCC NAFTA NAP
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Executive Summary The Association o
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Infrastructure and the legal framew
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Despite tariff reductions, the regi
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CHAPTER 1 Introduction Purpose, Sco
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Participating countries also gain a
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TABLE 1.2 Export Competitiveness Fa
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transactions, reinvested earnings,
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Bibliography Acoca, Brigitte. Empow
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CHAPTER 2 ASEAN and Selected Region
Page 35 and 36: BOX 2.1 Timeline of important miles
Page 37 and 38: BOX 2.2 AEC Blueprint: Goals and me
Page 39 and 40: BOX 2.3 ASEAN-wide free trade agree
Page 41 and 42: progress has been only achieved in
Page 43 and 44: BOX 2.4 What is ATIGA? ATIGA builds
Page 45 and 46: TABLE 2.2 Intra-ASEAN imports and e
Page 47 and 48: TABLE 2.4 Total imports, exports, a
Page 49 and 50: China is often viewed as a major co
Page 51 and 52: cases of dispute, but does not prov
Page 53 and 54: TABLE 2.6 Minimum permitted equity
Page 55 and 56: TABLE 2.8 Ease of trading across bo
Page 57 and 58: it maximally useful, such as the ab
Page 59 and 60: TABLE 2.9 ASEAN in the World Bank
Page 61 and 62: foreign ownership of express delive
Page 63 and 64: population that regularly uses the
Page 65 and 66: Bibliography Acoca, Brigitte. Empow
Page 67 and 68: ASEAN Economic Ministers. “Joint
Page 69 and 70: Malaysian Institute of Economic Res
Page 71 and 72: CHAPTER 3 Electronics: Computer Com
Page 73 and 74: competition between ASEAN countries
Page 75 and 76: Regional Integration, Export Compet
Page 77 and 78: Supporting industries Another impor
Page 79 and 80: The AEF is unique within the region
Page 81 and 82: TABLE 3.3 Computer components: ASEA
Page 83 and 84: joint R&D. 71 These advantages of l
Page 85: order to compete for investment (bo
Page 89 and 90: Bibliography Asian Productivity Org
Page 91: World Trade Organization (WTO). Inf
Page 94 and 95: Project to stimulate intra-ASEAN pr
Page 96 and 97: TABLE 4.2 Certain cotton woven fabr
Page 98 and 99: includes the production of cotton y
Page 100 and 101: BOX 4.1 Cotton woven apparel: Profi
Page 102 and 103: national government source stated t
Page 104 and 105: strengthen supplier relationships.
Page 106 and 107: Indonesia has limited potential as
Page 108 and 109: investment, 67 with much of the inv
Page 110 and 111: Bibliography Association of Southea
Page 113 and 114: CHAPTER 5 Wood-based Products: Hard
Page 115 and 116: some cases, on the export of sawnwo
Page 117 and 118: TABLE 5.1 Hardwood plywood and floo
Page 119 and 120: industry are limited, particularly
Page 121 and 122: important factors continue to hampe
Page 123 and 124: TABLE 5.3 Major intergovernmental p
Page 125 and 126: Export Competitiveness In 2008, ASE
Page 127 and 128: TABLE 5.6 Hardwood plywood and floo
Page 129 and 130: FDI in hardwood plywood and floorin
Page 131 and 132: Trade across land routes has been a
Page 133 and 134: Azarcon, Chulia J. “Comparative T
Page 135 and 136: Malaysia Timber Industry Board (MTI
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CHAPTER 6 Healthcare: Healthcare Se
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In recent years, the traditional in
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services industry by developing the
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Only a few countries export large v
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growing populations, and increasing
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has a healthcare MOU with Cambodia.
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BOX 6.1 Healthcare services: Profil
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competition for foreign patients in
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Singaporean provider provides train
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Giusti, Daniele, Bart Criel, and Xa
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Socio-economic and Environmental Re
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Within the broad priority sector, t
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Japanese automakers. Their supplier
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suppliers must be able to meet QCD
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BOX 7.2 Automotive: Profile of ASEA
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Thailand is considered to be the mo
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Despite the continued implementatio
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TABLE 7.2 Certain motor vehicle par
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Inbound Investment The investment e
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Trade Facilitation The timely movem
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Bibliography Aldaba, Rafaelita M.
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Thailand in the 2000’s. “Indust
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(2) the development of ASEAN cooper
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productive in climates further from
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ASEAN members Thailand and the Phil
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Tariff, import tariffs on palm oil
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BOX 8.1 Palm oil: Profile of ASEAN
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chain, from plantations to retailer
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TABLE 8.6 Palm oil: Intra-ASEAN inv
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Brunei Burma Cambodia Indonesia Lao
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Hickman, Martin. “Online Protest
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APPENDIX A USTR Request Letter
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A-4
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E Federal Register /Vol. 74, No. 23
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APPENDIX C Calendar of Hearing Part
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APPENDIX D Positions of Interested
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Mr. Aquino noted that the Philippin
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FTA (AANZFTA), Australian and New Z
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cumbersome rules of origin, customs
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APPENDIX E Country Profiles
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BURMA ECONOMIC PROFILE Economic Ind
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INDONESIA ECONOMIC PROFILE Economic
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MALAYSIA ECONOMIC PROFILE Economic
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SINGAPORE ECONOMIC PROFILE Economic
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VIETNAM ECONOMIC PROFILE Economic I
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TABLE F.1 Agro-based products: Prio
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TABLE F.3 Electronics: Priority sec
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TABLE F.4 Healthcare: Priority sect
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TABLE F.5 Textiles and apparel: Pri
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