As diverse as it may seem, ASEAN is not a region of barriers. The 10 ASEAN Member States are working tirelessly towards the establishment of the ASEAN Economic Community. One of the goals is to further improve connectivity among ASEAN’s peoples, institutional policies, and infrastructures. ASEAN’s approach to regionalism as reflected in the more recent implementation of tariff reduction, better customs procedures, services and investment liberalization allow investors to move goods, services, investments, capital, and skills around the region with ease.
ASEAN in the World
Spanning more than 4.4 million square kilometers of land, the ASEAN Region is right in the geographic heart of the world’s premier growth corridor at present and in the near future. The Republic of China, to which three ASEAN countries (Myanmar, Lao PDR, and Viet Nam) share their northern borders with, is an economy of 1.3 billion people characterized by a fast and growing middle income class. The equally robust market of India, which has largely contributed to ASEAN trade lies on the west of ASEAN, while world economic power Australia sits at the region’s doorstep in the south.
ASEAN has been expanding its foothold in the world. In terms of FDI, ASEAN’s share globally and among developing economies rose. According to the latest ASEAN Investment Report, in 2010-2011, ASEAN received 7.4% of global FDI inflows and 16.1% of inflows to developing economies as compared with only 2.7% and 11%, respectively in 2000-2003.
The region emerges as a key player in global supply chains in an increasing array of product categories. Today, ASEAN is a major producer and exporter of various electrical and electronic products. It is the world’s biggest exporter of electronic integrated circuits, transistors, computer data storage, magnetic equipment for sound recording, telephone sets, and cameras and cathode ray tube monitors. In agriculture, ASEAN is a major global producer of palm oil, rubber, and other agricultural crops, and the world’s biggest exporter of milled rice and frozen shrimps and prawns.
ASEAN thrives in the automotives industry. The region is the world’s largest producer and exporter of one tone pick-up trucks, and a major producer of certain automotive models. Present in ASEAN are various global auto firms and major global auto parts and components manufacturers. In textile and garments, some of the world’s biggest retailers and brand owners are in the region, outsourcing or manufacturing their garments or footwear.
| Fast Facts |
|---|
| ASEAN population is 9% of the world’s population 604,803 million people |
| ASEAN+3 population is 31% of the world’s population 2.13 billion people |
| ASEAN+6 population is 49% of the world’s population 3.36 billion people |
| ASEAN has free trade agreements with China, Japan, Korea, Australia and New Zealand, and India |
| ASEAN GDP is 3.1% of the world’s GDP US$ 2.18 trillion |
| ASEAN+3 GDP is 24% of the world’s US$ 16.46 trillion |
| ASEAN+6 GDP is 28% of the world’s US$ 19.79 trillion |
| ASEAN+3 trade is 24% of world’s trade US$ 8.79 trillion |
| ASEAN+6 trade is 28% of world’s trade US$ 10.14 trillion |
Notes:
- Data as of 2011; Source: ASEAN Secretariat
- ASEAN+6 refers to ASEAN and its 6 dialogue partners to which it has an existing free trade agreement with: China, Japan, Korea, Australia, New Zealand, and India.
- ASEAN+3 refers to ASEAN and its dialogue partners in Northeast Asia which are China, Japan, and Korea.
