Outsourcing Opportunities in ASEAN: Policy Paper

This Policy Paper highlights key recommended policy orientations to boost ASEAN’s competitiveness competitiveness with regard to outsourcing of goods and services and the rise of global value chains (GVCs). Firstly, it defines the context and introduces some key definitions relevant to outsourcing. Secondly, it presents a brief overview of services outsourcing trends in recent decades. Thirdly, it considers ASEAN competitiveness by analysing the new trade in value-added (TiVA) database, the constructed GVC Readiness Index, and modern global value chains. All together, this informs the final section of the Policy Paper, which analyses GVC related factors affecting ASEAN positioning and presents ASEAN-wide policy orientations post 2015. Outsourcing Opportunities in ASEAN: Policy...

Best Practices for Investment Promotion and Facilitation in ASEAN: General Paper

In order for ASEAN to enhance its attractiveness as an investment destination as envisioned in the AEC Blueprint 2025, ASEAN needs to boost its effort in investment promotion and facilitation. This paper aims to provide ASEAN Member States with a deeper understanding of regional and global ‘best practices’ in investment promotion and facilitation.  This deeper understanding may be used to guide current or future initiatives, whether at the regional, national or sub-national level, in order to facilitate freer flow of capital and investment. Specifically, this paper identifies best practices and lessons learned in the four core functions of Investment Promotion Agencies (IPAs): promotion, attraction, facilitation and aftercare. It proposes and examine opportunities for development of practical initiatives in two areas that are potential areas for practical initiatives by AMS: 1) Formal & Informal Ambassadorial and cultural networks; and 2) private sector partnerships. Separate reports on each of these areas are available through the Services and Investment Division of the ASEAN Secretariat. Download: Best Practices for Investment Promotion and Facilitation in ASEAN: General Paper  ...

ASEAN Investment Report 2016: Foreign Direct Investment and MSME Linkages

The ASEAN Investment Report is an annual report on investment and other related issues in the region. This year’s Report features the linkages between ASEAN Micro, Small and Medium Enterprises (MSMEs) and multinational enterprises (MNEs). It highlights the extent to which ASEAN MSMEs internationalise and, more importantly, why and how they do so. It also analyses the roles of ASEAN MSMEs in realising the goals of the ASEAN Economic Community and in improving the overall investment environment. The report was developed through collaboration with the ASEAN Secretariat and the United Nations Conference on Trade and Development (UNCTAD). The document was launched during the ASEAN Business and Investment Summit 2016, held alongside the 28th and 29th ASEAN Summit, in Vientiane, Lao PDR. Download...

ASEAN Investment Report 2015 – Infrastructure Investment and Connectivity

Foreign Direct Investment (FDI) into ASEAN has risen for the third consecutive year from $117.7 billion in 2013 to $136.2 billion in 2014. Despite a 16% decline of global FDI flows in 2014, ASEAN Member States have collectively received the largest FDI among developing countries. Due to robust regional economic fundamentals, cost advantages, regional integration, and on-going efforts to improve the investment environment in ASEAN, the region is now seen as a prime investment destination, attracting investments and influencing corporate strategies in the region. Investments from ASEAN Member States also continue to rise, reaching $24.4 billion in 2014 from $19.4 billion of the previous year. With intra-ASEAN investment accounting for 18% of the total FDI into the region, ASEAN is now the 2nd largest investor in its own region, manifesting greater interest from the business community to have a stronger regional presence in light of the establishment of the ASEAN Economic Community by the end of 2015. This 2015 ASEAN Investment Report focuses on infrastructure investment and connectivity – both critical in supporting ASEAN’s economic growth as they improve logistical efficiency, reduce transaction costs and support greater flow of trade and investment. Highlighting the important role of the private sector in helping governments to bridge the infrastructure gap in ASEAN and the linkages of various players across the infrastructure value chain, this Annual Report continues to provide useful updates on the latest developments in the ASEAN investment landscape. This report was prepared under a technical cooperation arrangement between the ASEAN Secretariat and the UNCTAD Division on Investment and Enterprise (DIAE). This report was published in 2015, and also currently available at the UNCTAD website. Download...

Regional Report on Outsourcing Opportunities in ASEAN

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 supports efforts to increase outsourcing activities within ASEAN Member States. Through the Outsourcing Opportunities in ASEAN project, a comprehensive analytical study on manufacturing outsourcing opportunities in ASEAN had been undertaken, with the aim to enhance understanding of outsourcing in general and outsourcing opportunities in ASEAN production networks. As a result, a Regional Report has been produced, highlighting the strategic and tactical positioning of ASEAN to be more competitive in outsourcing industries. The report includes strategic analysis and vision for ASEAN through understanding and measuring “outsourcing” as an economic activity and its impact on economies and the concept of “competitiveness”, an assessment of the current outsourcing situation in ASEAN particularly relative competitiveness in relation to the cross-border outsourcing of goods and services, and identification of factors that affect an outsourcing decision and influence the success of outsourcing activities. It contains practical policy recommendations at both regional and national levels. This will lay a platform and provide some guidance for the post-2015 economic policies of ASEAN Member States (AMS). In addition, Country Reports has been produced outlining the current outsourcing situation and Global Value Chain (GVC), and policy recommendations for 10 individual ASEAN Member States. Please contact the ASEAN Secretariat Services and Investment divisions to access these...

ASEAN Investment Report 2013-2014: FDI Development And Regional Value Chains

ASEAN’s integration efforts are pursued through key regional measures that among others, strengthen investment cooperation among ASEAN Member States, enhance investment protection and liberalization regimes, and promote ASEAN as an integrated investment and production network. All these have contributed to make the ASEAN region an attractive destination for foreign direct investments (FDI). With ASEAN’s continuing success as a competitive location hosting intermediate manufacturing facilities as well as value chain operations of transnational corporations (TNC), this year’s ASEAN Investment Report focuses on FDI development and regional value chains. The Report illustrates how the expansion of TNC operations and the increase in capacities of local firms to produce inputs have helped strengthen the development of the regional value chain which, in turn, underpins and contributes to ASEAN’s...