Association of Southeast Asian Nations (ASEAN)

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About ASEAN
Geo-political and economic organization of ten countries located in Southeast Asia Formed on 8 August 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand Membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam Facts 4.46 million km - 3% of the total land area of Earth population of approximately 600 million people - 8.8% of the world In 2010, its combined nominal GDP had grown to US$1.8 trillion.

Contd..
Motivations for the birth of ASEAN were so that its members could concentrate on nation building Stand against Communism Indonesias ambition to become a regional hegemon Protect mutual interest and creating regional solidarity as well as promoting regional peace and stability Free Trade within ASEAN (1991) (AIFTA) Investments (ASEAN Investment Area) (1998)

AIMS AND PURPOSES

To accelerate the economic growth, social progress and cultural development To promote regional peace and stability through abiding respect for justice To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific and administrative fields To provide assistance to each other in the form of training and research facilities in the educational, professional, technical and administrative spheres; To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade To promote Southeast Asian studies To maintain close and beneficial cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves

Indonesia
1 USD = 8625 Rupiah

Indonesia is a republic, with an elected legislature and president It has a market economy in which the government plays a significant role by owning more than 164 enterprises and administers prices on several basic goods, including fuel, rice, and electricity Indonesia was the only Asian member of the Organization of Petroleum Exporting Countries (OPEC) outside of the Middle East until 2008 and is currently a net oil importer Main Industries: Petroleum and natural gas, textiles, apparel, footwear, mining Highly overburdened transportation Indonesia and India are member states of the G-20, theE7 (countries), the Non-aligned Movement, and the United Nations

Thailand
1USD = 30.25 Thai Baht

Thailand is constitutional monarchy The judiciary is independent of the executive and the legislative branches Transport in Thailand is varied and chaotic, with no one dominant means of transport 2nd largest economy in Southeast Asia after Indonesia Heavily export-dependent economy, with exports accounting for more than two thirds of GDP GDP growth by 8.0% in 2010 making it one of the fastest growing economies in Asia According to the U.S. Department of State, union workers are inadequately protected Main Industries: Automobiles and Automotive parts (11%), Financial Services (9%), Electric appliances and components (8%), Tourism (6%)

Myanmar
1 USD = 1205 kyats

The government of Myanmar is controlled by the military styled in the form of a presidential republic under the 2008 constitution 90% of the world's rubies come from the country India and Myanmar share a long land border of over 1600 km and a maritime boundary in the Bay of Bengal 2.5 million Indian origin population India's imports from Myanmar are dominated by agricultural items (beans, pulses and forest based products form 90% of our imports). Indias main exports to Myanmar are primary and semi-finished steel and pharmaceuticals India is eying Myanmars rich gas resources

Laos
1 USD = 8000 Lao Kip

Laos is a communist single-party socialist republic. The only legal political party is the Lao People's Revolutionary Party (LPRP) Much of the country lacks adequate infrastructure. Laos has no railways, except a short link to connect Vientiane with Thailand over the ThaiLao Friendship Bridge

Brunei Darussalam
US Dollar = 1.52 Bruneian Dollars

Brunei has a constitutional sultanate. It has a legal system based on English common law, although Islamic shariah law supersedes this in some cases The major population centres in the country are linked by a network of 2,800 kilometres of road The petroleum sector contributes 94 percent of Brunei's state revenue, 96 percent of its exports Brunei can emerge as an important and long-lasting supplier of oil and gas for India Mean wages were $25.38 per manhour in 2009

Cambodia
1USD = 4100 Cambodian Reil

The government is a constitutional monarchy operated as a parliamentary representative democracy Based on the Economist, IMF: Annual average GDP growth for the period 2001 2010 was 7.7% making it one of the world's top ten countries with the highest annual average GDP growth Bilateral trade in the year 2009-10 : US$50.60 million (Indian export of US$45.54 million and import of US$5.05 million) India has great potential in increasing exports in textiles, pharmaceuticals, automobile components and machinery to Cambodia. In the area of investment, Indian investors should seek investment opportunities in the pharmaceutical industry, IT-related services, and education Cambodia is the country coordinator for India in the ASEAN Wage rates average out to only $25-30 per month. Foreign companies are currently paying approximately $US100 to $US150 per month for non-qualified workers with minimal English language skills; $US200 to $US350 per month for workers with good English language skills and perhaps a higher education; and up to $US700 per month for bilingual, well educated, well connected workers

ASEAN trade by selected partner country/region, 2009

as of 15 July 2010 value in US$ million; share in percent Share to total ASEAN trade Total trade 3,76,207.3 1,78,185.4 1,71,785.9 1,60,863.7 1,49,572.1 74,740.3 43,850.1 39,115.8 9,039.6 6,765.5 5,376.2 4,303.4 Exports 24.6 10.1 11.5 9.6 10.1 4.2 3.6 3.3 0.7 0.2 0.4 0.5 Imports 24.3 13.3 10.8 11.4 9.3 5.6 2.0 1.7 0.5 0.7 0.3 0.1 Total trade 24.5 11.6 11.2 10.5 9.7 4.9 2.9 2.5 0.6 0.4 0.3 0.3

Partner country/region ASEAN China EU-25 Japan USA Republic of Korea Australia India Canada Russia New Zealand Pakistan Total selected partner countries/regions Others2/ Total ASEAN

Value Exports 1,99,587.3 81,591.0 92,990.9 78,068.6 82,201.8 34,292.9 29,039.3 26,520.3 5,500.4 1,660.6 3,137.6 3,833.8 Imports 1,76,620.1 96,594.3 78,795.0 82,795.1 67,370.3 40,447.4 14,810.8 12,595.5 3,539.2 5,104.9 2,238.6 469.6

6,38,424.5
1,72,064.7 8,10,489.2

5,81,380.8
1,44,973.3 7,26,354.1

12,19,805.2
3,17,038.0 15,36,843.3

78.8
21.2 100.0

80.0
20.0 100.0

79.4
20.6 100.0

Source ASEAN Merchandise Trade Statistics Database (compiled/computed from data submission, publications and/or websites of ASEAN Member States' national

Total land area Country km2 2009

Annual Total Population population population1/ density1/ growth1/ thousand 2009 persons per km2 2009 percent 2009

Gross domestic Gross domestic product product2/ per capita at current prices at current prices
US$ million 2009 US$2/ 2009 US$ PPP 2009
3/

Foreign direct investments infow4/

US$ million US$ million 2009 2010/p

Brunei Darussalam
Cambodia Indonesia Lao PDR Malaysia Myanmar The Philippines Singapore Thailand Viet Nam ASEAN

5,765
1,81,035 18,60,360 2,36,800 3,30,252 6,76,577 3,00,000 710 5,13,120 3,31,212 44,35,830

406.2
14,957.8 2,31,369.5 5,922.1 28,306.0 59,534.3 92,226.6 4,987.6 66,903.0 87,228.4 5,91,841.0

70
83 124 25 86 88 307 7,023 130 263 133

2.1
2.1 1.2 2.8 2.1 1.8 2.0 3.1 0.6 1.2

10,758.6
10,359.2 5,46,864.6 5,579.2 1,93,107.7 24,972.8 1,61,357.6 1,82,701.7 2,64,322.8 96,317.1

26,486.0
692.6 2,363.6 910.5 6,822.0 419.5 1,749.6 36,631.2 3,950.8 1,119.6 2,532.5

36,177.4
1,787.6 4,371.2 2,250.0 12,353.3 1,138.1 3,591.8 52,871.8 7,943.5 3,123.8 4,872.9

369.7
530.2 4,876.8 318.6 1,381.0 578.6 1,948.0 16,808.9 4,975.6 7,600.0 39,387.3

247.9
313.5 6,243.9 100.6 3,313.0 n.a 732.0 17,341.0 3,511.8 4,310.0 36,113.6

1.4 14,96,341.3

ASEAN & FTAs

ASEAN Australia New Zealand Free Trade Area (AANZFTA) is a free trade area between ASEAN and ANZCERTA, signed on 27 February 2009 and coming into effect on 1 January 2010.Details of the AANZFTA agreement are available online. ASEANChina Free Trade Area (ACFTA), in effect as of 1 January 2010 ASEANIndia Free Trade Area (AIFTA), in effect as of 1 January 2010 ASEANJapan Comprehensive Economic Partnership (AJCEP) ASEANKorea Free Trade Area (AKFTA), in effect as of 1 January 2010

ASEAN & INDIA

Background
Southeast Asia and Indian cultural links date back thousands of years Ancient Indian classical works, such as the Ramayana, reference parts of Southeast Asia Indian merchants began bringing Hinduism and Buddhism across the sea by the 1st century AD, influencing the development of kingdoms and empires like Srivijaya in Sumatra and the Majapahit in Java, Bali and the Philippine archipelago Indian influence is still visible today in Southeast Asian architecture, food, pop culture, language and religion. Ideological differences during Cold War Look East policy under then Indian Prime Minister Narasimha Rao in 1990s

Timeline

INDIA-ASEAN FTA
Initial framework agreement was signed on 8 October 2003 in Bali, Indonesia Final agreement signed on 13 August 2009. The free trade area came into effect on 1 January 2010 (Only for Goods) Tariff liberalisation of over 90 percent of products traded , including the so-called special products, such as palm oil (crude and refined), coffee, black tea and pepper4000 products over 6 years Biggest Trade volume Currently working towards the early conclusion of the ASEAN-India Trade in Services and Investment Agreements Trade:
$40 Bn 2009 $50 Bn 2010 Expected $ 70 Bn 2012

India-ASEAN Economic Cooperation

ASEAN-India Cooperation fund: Projects are undertaken through this fund, which is managed by the ASEAN Secretariat in Jakarta. An amount of US $ 11,410,540 has been contributed by India, so far, under this fund ASEAN Development Fund: An amount of US $1 million was contributed by India ASEAN-India S&T fund: A fund with a US$ 1 million contribution from India has been established in India to promote joint collaborative R&D research India-ASEAN Green Fund: Established with a corpus of US $ 5 million to promote adaptation and mitigation technologies in the area of Climate change in ASEAN countries

Opportunity for India in ASEAN

According to a Ficci-Deloitte white paper on India-Asean Free Trade Agreement, corporate India could seriously look at opportunities in:
Construction of agricultural buildings, bridges, canal construction, concrete work, roads and highways, school buildings, sports facilities and water-treatment plants Machinery, equipment, appliances apparatus and associated products, office equipment, computers and supplies, instruments and appliances, industrial process control equipment, optical instruments, and horological instruments Pharmaceuticals, medical supplies, telecommunication, radio, television and communication equipment

Tourism
India has opened up air travel for ASEAN carriers Granted them 21 direct connections as well as unlimited landing clearance in four metropolitan cities during peak travel The fact that the number of tourists to India has increased considerably over the past three years gives reason to expect further increases the more tourism is facilitated

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