ASEAN at 50, a Historic Milestone for FDI and MNEs in ASEAN

Status: Ongoing This project produces the “ASEAN at 50, a Historic Milestone for FDIs and MNEs in ASEAN” publication, which will be launched as part of the 50th year anniversary of ASEAN. The publication examines and documents the region’s achievements in attracting Foreign Direct Investment (FDI)/ Multinational Enterprises (MNEs) in the furtherance of economic development over the course of the last 50 years. With an extensive use of tables, charts, boxes/cases and infographics, it charts the evolution in the scale, scope and characteristics of FDI across ASEAN, thereby supporting the transformation of the region and its constituent Member States. ASEAN has grown from one among many developing regions seeking the attention of international investors to a region of choice for many MNEs. It is the only developing region with a significant and diverse level of regional integration and value chains, in large part led by MNEs, both foreign and increasingly from ASEAN. The publication will evaluate what has been achieved, explain how challenges have been addressed, and offer an analysis of FDI and MNE development in the context of past policies and AEC 2015 and 2025. The publication will highlight how MNE strategies have evolved in the region over the years, including the symbiotic evolution of regional policy development and corporate strategies. Aspects covered will include the drivers, motivations and determinants of FDI in the region; key players among MNEs in the processes leading to stronger regional integration; regional production networks in the context of Global Value Chains and Regional Value Chains; and the overall impact of FDI and regional production networks on growth and...

ASEAN Investment Report 2015-2019

Status: Ongoing The ASEAN Economics Ministers (AEM) and the ASEAN Investment Area Ministerial Council meetings in 1999 mandated the publication of an annual public investment report to provide information on trends and developments related to foreign direct investments (FDI) in ASEAN. The aim of these reports is to increase understanding of the investment regimes in ASEAN Member States (AMS) and the region’s investment climate. The reports will also articulate how efforts towards regional integration are shaping the trends and developments in FDI flows into and within ASEAN. Following the adoption of the ASEAN Economic Community (AEC) Blueprint in 2007, the ASEAN Investment Report (AIR) has also served to inform investors on key AEC investment measures and initiatives, including investment policies in the priority integration sectors. This project supports drafting of the ASEAN Investment Report 2015, 2016 and 2017. In 2016, the project has been extended to support the 2018 and 2019 report. The reports will be developed through collaboration between AADCP II, ASEAN Secretariat and the United Nations Conference on Trade and Development (UNCTAD). Downloads: ASEAN Investment Report 2015: Infrastructure Investment and Connectivity ASEAN Investment Report 2016: Foreign Direct Investment and MSME...

Promoting the ASEAN Comprehensive Investment Agreement (ACIA) – Phase 2

Status: ongoing Following successful completion of the Promoting ACIA project in 2013, ASEAN Member States agreed there is a need to hold more ACIA forums/events for investors and businesses, and seminars for the AMS to develop further awareness and understanding of ACIA. As such, this project undertakes further socialization activities for the ACIA across ASEAN Member States, with the support of host governments and business chambers, where possible. The project will also conduct additional seminars for government officials as part of a continuous learning process for Investment Promotion Agencies and will also include officials involved in the implementation of ACIA and negotiation of investment agreements. Related Project: Promoting the ACIA...

Development of the ASEAN Investment Website-Portal

Status: Ongoing To date, there is not yet a centralised integrated approach in marketing ASEAN as a single investment area. Most efforts to promote investment at the regional level have not been sustainable and tend to be one-off activities or publications. This project builds ASEAN brand as a single investment destination and attract investors through the internet, which would allow ASEAN greater reach and a wider audience in the most effective and cost efficient means. Through this project, the ASEAN Investment Website-Portal had been launched in 2013. The website-portal serves as an information hub and a gateway to attract and facilitate businessmen and firms interested to invest in the region. It includes a database of domestic laws and regulations, schedule of commitments, and links to investment promotion agencies in the region.  The project currently supports the update and maintenance of the website-portal.                      ...

Development of a Coordinating Committee on Investment Work Programme

The Coordinating Committee on Investment (CCI) is the main ASEAN sectoral body responsible for coordinating activities designed to meet AEC Blueprint goals with respect to enhancing investment. They meet frequently to review activities underway both regionally and within ASEAN Member States and to develop overall policies and approaches for future activities. The CCI functions well as a mechanism for coordinating inputs and implementing the various investment actions under the AEC Blueprint. While it has been driven in the past by the steps listed in the AEC Blueprint, it is recognised that the AEC Blueprint activities are not exhaustive nor of sufficient detail for a comprehensive work program to guide activities in a coordinated and sequenced manner. This short-term project-two weeks of inputs by an experienced professional-resulted in the creation of a multi-year work program for the CCI. Following review of existing materials and discussions with relevant officials, the consultant presented an outline of the work at the 51st CCI meeting in November 2010. Incorporating feedback from the meeting, the work program framework was further developed and structured around seven “pillars” of types of efforts. A range of “actionable activities” were identified and sequenced. The draft CCI work program, entitled “ASEAN Strategic Investment Plan 2011-2015”, was presented at the 52nd CCI meeting in February 2011 and has been approved to be further utilised as a reference document in developing the Investment Implementation Plan 2011-2015.            ...

Outsourcing Opportunities in ASEAN

Status: Completed Increased FDI flows can be achieved through a number of different approaches. One such approach is outsourcing: the contracting out by a firm of certain business functions, previously undertaken in-house, to an external provider. AADCP II will support efforts to increase outsourcing activities within ASEAN Member States. This project will consist of two components: 1) a comprehensive analytical study on manufacturing outsourcing opportunities in ASEAN with an aim to enhance understanding of outsourcing in general and outsourcing opportunities in ASEAN production networks; and 2) an initial promotional program. The first component included analysis of the theoretical basis of outsourcing as an economic activity and its impact on economies, an assessment of the current outsourcing situation in ASEAN Member States, and identification of factors that affect an outsourcing decision and influence the success of outsourcing activities. While the study assess outsourcing in all ASEAN Member States, it pays particular attention to the CLMV countries (Cambodia, Lao PDR, Myanmar and Viet Nam) as part of ASEAN’s overall focus on narrowing the development gap. The study produced practical policy recommendations at both regional and national levels for the endorsement of the ASEAN sectoral bodies. The second component focused on the development of a long-term program to promote outsourcing opportunities in ASEAN based on the results of the analytical study. This included development of a long-term strategy and work program for facilitating and promoting outsourcing opportunities, identification of essential activities to promote outsourcing and implementation of initial, selected activities. This project links to a number of other completed AADCP II-supported projects in the investment sector: 1) Enhancing Implementation of ASEAN Agreements; 2) Investment...