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

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).
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