ICT in ASEAN - Kenkencosh.com/wp-content/uploads/2015/02/ICT-in-ASEA… ·  · 2015-02-04ICT in...

90
ASEAN Integration & ICT Opportunities Mark Hefner

Transcript of ICT in ASEAN - Kenkencosh.com/wp-content/uploads/2015/02/ICT-in-ASEA… ·  · 2015-02-04ICT in...

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ASEAN Integration

& ICT OpportunitiesMark Hefner

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Contents

Some ICT Information

ASEAN Introduction

AEC Introduction

ICT & ASEAN Integration

International Business

International Trade Rules

ASEAN Framework Agreement in Services

United Nations (UN)Central Product Classification

Finding the AFAS Schedules

Student task

Conclusion

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What is ICT?

Information

CommunicationTechnology

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Global ICT

3 billion people use the internet

Almost 7 billion cell phone subscriptions

ICT is a key driver in economic and

social transformation

10% increase in broadband penetration

increases GDP on average 1.3%

10% increase in mobile tele-density

increases GDP by 0.7%

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ICT in ASEAN (2011)

ICT employs 11.7 million people

ICT contributes more than $32 billion (1.45%) to the ASEAN GDP

78% of people in ASEAN use ICT

Mobile penetration average between 1 and 138%

However it is 100% in 5 ASEAN states

Source: ICT Master Plan 2015

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ASEANAn Introduction

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ASEAN

Association of South East Asia Nations

The ASEAN Declaration was signed on 8 August, 1967

Thailand, Indonesia, Philippines, Malaysia, Singapore

Brunei, Vietnam, Cambodia, Myanmar and Laos

Purpose:

Regional Cooperation, economic growth, social progress, cultural development, collaboration, mutual assistance and raise the living standards

ASEAN Today

2.2 Trillion US Dollars 71.639 Trillion Baht

625 Million People

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406.2 14,962.6

248,818.1

6,644.0

29,948.0

61,573.8

99,384.5

5,399.2

68,251.0

89,708.9

Brunei

Darussalam

Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam

Nu

mb

er

of P

eo

ple

(0

00

)

Country

2013 Population

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70 83 134 28 91 91 331

7,550

133 271

Brunei

Darussalam

Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam

Pe

rso

ns

pe

r k

m^

2

Country

2013 Population Density

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16,117.5 15,659.0

862,567.9

10,002.0

312,071.6

56,408.0

269,024.6297,945.8

387,534.1

171,219.3

Brunei

Darussalam

Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam

In M

illio

ns

of U

S D

olla

rs

Country

2013 Gross Domestic Product

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39,678.7

1,046.5 3,466.7 1,505.4

10,420.5

916.1 2,706.9

55,183.3

5,678.1

1,908.6

Brunei

Darussalam

Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam

GD

P/C

ap

ita

Country

2013 GDP per Capita

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Questions

How many countries are in ASEAN?

10

What are the names of the countries?

Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

Which ASEAN country has the most people in one location?

Singapore

Which ASEAN country has the largest economy?

Indonesia

Which ASEAN country has the richest citizens?

Singapore

Which country has the fewest number of potential customers?

Brunei Darussalam

10102

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ASEAN Integration

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ASEAN Integration Timeline

Kuala Lumpur Summit (1997)

ASEAN Vision 2020

Bali Summit (2003)

ASEAN Economic Community

ASEAN Political Security Community

ASEAN Social Cultural Community

Cebu Summit (2007)

Accelerate ASEAN Integration to 2015

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ASEAN (Integration) Blueprints

ASEAN Economic Community Blueprint(AEC) 2007

The AEC will transform ASEAN into a single market and production base, a highly

competitive economic region, a region of equitable economic development, and a

region fully integrated into the global economy

ASEAN Political Security Blueprint (APSC) 2009

The APSC will ensure that the peoples and Member States of ASEAN live in peace with

one another and with the world at large in a just, democratic and harmonious

environment

ASEAN Social Cultural Community Blueprint (ASCC) 2009

The primary goal of the ASCC is to contribute to realizing an ASEAN Community that is

people centered and socially responsible with a view to achieving enduring solidarity

and unity among the nations and peoples of ASEAN

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ASEAN Economic CommunityAn Introduction

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ASEAN Economic Community (AEC)

Goal

SOURCE: AEC Blueprint

Economic Integration

Brunei

Cambodia

Indonesia

Laos

Malaysia

Myanmar

Philippines

Singapore

Thailand

Vietnam

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The 4 Pillars (Characteristics)

of the ASEAN Economic Community

SOURCE: AEC Blueprint

A single

market and

production

base

A highly

competitive

economic

region

A region of

equitable

economic

development

A region

fully

integrated

into the

global

economy.

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PILLAR I

Single Market and Production Base

Free Flow of Goods

Tariffs Non-Tariff Barriers

Rules of Origin

Trade Facilitation

Customs Integration

e-Customs

ASEAN Single Window

Standards and Technical

Barriers to Trade

Free Flow of Services

Recognize Professional

Qualifications

Financial Services Liberalization

Free Flow of Investment

Investment Protection

Facilitation and Cooperation

Promotion and Awareness

Liberalization

Free Flow of Capital

Capital Market Development and

Integration

Greater Capital Mobility

Free Flow of Skilled Labor

Visas and Employment

Passes for Skilled Labor

Harmonizing & Standardization

SOURCE: AEC Blueprint

http://www.aseanexchanges.org/

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PILLAR II

Highly Competitive

Economic Region(Free Market)

Competition Policy

Consumer Protection

Intellectual Property Rights

(IPR)

Infrastructure Development

Taxation

E-Commerce

www.aseancompetition.org

www.aseanconsumer.org

ASEAN IPR Action Plan 2011-2015

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PILLAR III

Equitable Economic Development

SME Development

Implement the ASEAN

Policy Blueprint for

SME Development

Promote networking of

SME

Promote best practices in

SME development

Initiative for ASEAN Integration (IAI)Infrastructure, HR Development, ICT, Capacity Building for Regional Economic

Integration, Energy, Investment Climate, Tourism, Poverty Reduction, Improvement of Quality of Life.

Identify where IAI is needed

in CLMV

ASEAN-6 to support CLMV

Get support from other

partners such as the ASIA

Development Bank or World

Bank

Help government

develop social programs to mitigate any

negative impact of economic integration

Conduct regular studies

to assess/monitor the impact of

economic integration

SME Action Plan 2010-2015

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PILLAR IV

Integration into the Global Economy

Coherent Approach towards External Economic Relations

• Review FTAs and Comprehensive Economic Partnerships (CEP) in regards to ASEAN internal integration commitments

• Establish a system for common approaches to ASEAN external economic relations while maintaining ASEAN centrality

Enhanced participation in global supply networks

• Continue the adoption of international best practices and standards in production and distribution

• Assist the CLMV countries upgrade their industrial capability and productivity in order to enhance their participation in regional and global integration

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External RelationsASEAN Centrality

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ASEAN Centrality

Pacific

Alliance

Columbia

RCEP

India

APEC

Hong Kong

Taiwan

Papua New

Guinea

TPP

Chile

Peru

Mexico

Canada

EAS

United States

Russia

ASEAN+3

China, Japan, Republic of Korea

AAZNFTA

Australia

New Zealand

ASEAN

Brunei Cambodia Indonesia

Laos Malaysia Myanmar

Philippines Singapore Thailand

Vietnam

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Implementation Responsibilities

Relevant sectoral ministerial bodies responsible for the implementation of the Blueprint and monitoring of commitments under their respective purview

ASEAN Economic Ministers as the Ministers in charge of Economic Integration in the Council of ASEAN Economic Community accountable for the overall implementation of the Blueprint

ASEAN legal instruments shall be ratified within 6 months of signing

Develop a monitoring system and statistical indicators to track AEC integration process

Translate AEC targets and milestones into national targets and milestones

Communications

Explain the AEC objectives, benefits, and challenges to government officials, key stakeholders, and the general public

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AEC Blueprint Strategy

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Current AEC Status as of August 2014

Of 281 objectives

229 Objectives accomplished (82%)

52 remain and due by Dec 31, 2015 (18%)

SOURCE: 46th ASEAN Economic Ministers’ Meeting, 25-28 August, 2014

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ICT and the ASEAN

Community Blueprints

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ICT & the ASEAN

Political Security

Community

Blueprint

APSC

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ASEAN Political Security Community

(APSC)

A Rules-based Community of shared values and norms

A Cohesive, Peaceful, Stable and Resilient Region with shared responsibility

for comprehensive security

A Dynamic and Outward-looking Region in an increasingly integrated and

interdependent world.

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A Cohesive, Peaceful and Resilient Region with

Shared Responsibility for Comprehensive Security

Strengthen cooperation in addressing non-traditional security issues,

particularly in combating transnational crimes and other trans boundary

challenges (B.4.1)

Strengthen cooperation and assistance in combating and suppressing cyber

crimes including cooperation among law enforcement agencies, taking into

account the need of each country to develop laws to address cyber crimes

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ICT & the ASEAN

Social Cultural

Community

Blueprint

ASCC

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ASEAN Social Cultural Community

(ASCC)

ASCC Characteristics

Human Development

Social Welfare and Protection

Social Justice and Rights

Ensuring Environmental Sustainability

Building the ASEAN Identity

Narrowing the Development Gap.

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Human Development

Advancing and Prioritizing Education (A1):

Use ICT to promote education and life-long learning particularly in underserved communities

through open, distance education and e-learning

Investing in human resource development (A2)

Enhance the IT skills of the workforce in ASEAN through joint training programs and courses

Promoting ICT (A4)

Increase ICT literacy in ASEAN exp., women, children, the elderly and people with disabilities

Promote positive use of the internet

Encourage the introduction of ICT at all levels of education

Initiate the early use of ICT at the primary school

Enhance the use of ICT to promote e-learning

Develop a workforce and manpower with high levels of ICT proficiency and expertise

Facilitating access to applied Science and Technology (A5)

Promote the development, use and sharing of digital content among ASEAN Member States

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ICT & the ASEAN

Economic

Community

Blueprint

ASCC

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ASEAN Economic Community

A single market and production base

A highly competitive economic region

A region of equitable economic development

A region fully integrated into the global economy

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Single Market and Production Base

ASEAN Single Window

Accelerate the introduction of ICT for digitalized processing and exchange of

trade information

Information Infrastructure

Facilitate high-speed connection among all national systems

Intensify capacity building and training programs for national Computer

Emergency Response Teams (CERTS)

Strengthen the capacity, cooperation and coverage of ASEAN’s cyber-security

network

Encourage ICT stakeholder participation in using and developing regional ICT

infrastructure

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Other ASEAN ICT Initiatives

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E-ASEAN Framework Agreement 2011

To develop, strengthen and enhance the competitiveness of the ICT sector

To reduce the digital divide within and amongst ASEAN Member Countries

To promote cooperation between the public and private sectors

To develop ASEAN Information Infrastructure.

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ASEAN ICT Master Plan (AIM2015)

ICT is an engine of growth for ASEAN countries

Recognition for ASEAN as a global ICT hub

Enhanced quality of life for peoples of ASEAN

Contribute towards ASEAN integration

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ASEAN E-Commerce Database Project

To establish an ASEAN E-Commerce database - in order to gather and

consolidate sufficient and comprehensive information on the state E-

Commerce activities within ASEAN

The establishment of a baseline for measuring E-Commerce readiness

To provide the cooperating agencies of the ASEAN with this data collection

model for simultaneous gathering of information

To upload the findings to the ASEAN online database

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ASEAN Connect Website

www.aseanconnect.gov.my

A platform for the exchange of information on all aspects relating to the

development of ICT policy and regulation in ASEAN

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International Trade

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Business Trades-Two Types

Goods

•Food

•Electronics

•Houses & Cars

Services

•Education

•Hospitality

• Internet

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Goods (Products)

The end result of the manufacturing process, to

be offered to the marketplace to satisfy a need

or want (1)

For example,…Televisions

(1) http://www.investorwords.com/3874/product.html

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SERVICE

A type of economic activity that is intangible,

not stored, does not result in ownership and

which is consumed at the point of sale (1).

For example,…tourism

(1) http://www.investorwords.com/6664/service.html#ixzz39XRbr9ow

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Domestic Business Markets

Markets that are local or nearby

Markets in their Province or state

Markets that are National

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Business-International

National Market

International Market

Entry Strategies• Exporting• Turnkey• Licensing• Franchising• Joint Ventures• Wholly Owned Subsidiaries

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International Trade RulesGATT, the WTO & GATS

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General Agreement on Tariffs and

Trade (GATT) 1948-1995

For the selling of “Goods”

PURPOSE: The substantial reduction of tariffs and other trade barriers and

the elimination of preferences, on a reciprocal and mutually advantageous

basis

GATT agreements are negotiated and signed by most of the world’s

trading nations and ratified in their parliaments.

A multilateral agreement regulating international trade by 8 rounds of

negotiation that lasted about 47 years

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0

20

40

60

80

100

120

140

160

180

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Geneva 1945

(2 Years)

Annecy 1949

(2 Years)

Torquay 1951

(2 Years)

Geneva II 1956

(5 Years)

Dillon Round 1961

(5 Years)

Geneva, Kennedy

Round 1967

(6 Years)

Geneva, Tokyo

Round 1979

(10 Years)

Geneva, Uruguay

Round 1994

(15 Years)

Doha 2001

(14 Years)

Nu

mb

er

of

co

un

trie

s n

eg

otia

tin

g

Pe

rce

nta

ge

of

tim

e u

sed

to

ne

go

tia

te/c

ou

ntr

y

Round of Talks

Length of Negotiations per Country

% time allowed each country to negotiate Countries Negotiating

SOURCE: www.wto.org/English/thewto_e/whatis_e/tif_e/fact4_e.htm

GATT Trade Rounds

Year Place/name Subjects covered Qty Value Countries

1947 Geneva,

Switzerland

Tariffs 45,000 $10

Billion

23

1949 Annecy, France Tariffs 5000 13

1951 Torquay Tariffs 8700 38

1956 Geneva II Tariffs $2.5

Billion

26

1960-1961 Dillon Round Tariffs 4.9

Billion

26

1964-1967 Geneva

Kennedy Round

Tariffs and anti-dumping measures $40

Billion

62

1973-1979 Geneva

Tokyo Round

Tariffs, non-tariff measures, “framework”

agreements

$300

Billion

102

1986-1994 Geneva

Uruguay Round

Tariffs, non-tariff measures, rules, services, intellectual property,

dispute settlement, textiles, agriculture, creation of WTO, etc

123

2001-

Present

Doha Tariffs, non-tariff measures, agriculture, labor standards,

environment, competition, investment, transparency, patents etc

160

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Questions

What treaty helped to reduce tariffs and other trade barriers?

GATT

What does GATT stand for?

General Agreement on Tariffs and Trade

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GATT WTO

Led to the creation of the

World Trade Organization

in 1995

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World Trade Organization (WTO)

1995-Present

An international organization dealing with the rules of trade (of goods AND SERVICES) between nations.

WTO agreements are negotiated and signed by most of the world’s trading nations and ratified in their parliaments.

Its main function is to ensure that trade (goods and services) flows as smoothly, predictably and freely as possible.

The goal is to help producers of goods and services, exporters, and importers conduct their business.

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WTO Membership Map

WTO Membership160 Countries

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General Agreement for Trade in

Services (GATS) 1995

PURPOSE of GATS:

Create a credible and reliable system of international trade

rules (for services)

Ensuring fair and equitable treatment of all participants

Stimulating economic activity through guaranteed policy

bindings

Promoting trade and development through progressive

liberalization

Business Communication

Constructionand Related Engineering

Distribution

Educational Environmental

FinancialHealth Related

and Social

Tourism and Travel Related

Recreational, Cultural and

Sporting

TransportOther ServicesNot Included

Elsewhere

Service Sectors

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GATS 4 Modes of Supply

Mode 1

Cross Border Supply

Correspondence courses

Internet Streaming Movie Service

Tele-Medicine

Website Developers

Mode 2

Consumption Abroad

Tourist Activities

Medical treatment

Language courses taken abroad.

Mode 3

Commercial Presence

Medical services provided by a foreign-owned hospital

Courses in a foreign-owned school

Services supplied by a domestic branch or subsidiary of a foreign bank

Mode 4

Presence of Natural Persons

Doctors or teachers

Intra-corporate staff transfers

Short-term employment of foreign staff in foreign affiliates

Short-term employment of construction workers or paid domestic helpers

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Questions

What does the acronym WTO stand for?

World Trade Organization

How many member countries are there in the WTO?

160

What is the name of the agreement that covers the trade in services?

General Agreement for Trade in Services (GATS)

How many service sectors are there?

12

What mode of supplying a service establishes a commercial presence?

Mode 3

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ASEAN Framework Agreement of

Services(AFAS)

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ASEAN Framework Agreement in

Services (AFAS) 1995 Based on GATS

Eliminate substantially, restrictions on ASEAN trade in services with the end

goal of an ASEAN FTA in services (GATS Plus)

Progressive negotiations on the liberalization of trade in services

Currently, 8 rounds of negotiations completed; 72 sectors liberalized

ASEAN Trade in Services

Export of Services: 2005 $US 120.7 Billion to 2011 $US 260.9 Billion

Import of Services: 2005 $US 143.1 Billion to 2011 $US 269.1 Billion

Business Communication Construction and Related Engineering Distribution EDUCATIONAL Environmental

FinancialHealth Related and

SocialTourism And Travel Related

Recreational, Cultural and

SportingTransport

Other Services Not Included

Elsewhere

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Questions

What is the purpose of the ASEAN Framework Agreement in Services?

To remove restrictions from ASEAN trade in services

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Schedule of Specific

CommitmentsBusiness Services

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International Trade Terms

Liberalization

None

Unbound

Commitments

Schedule of Specific Commitments

Horizontal

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Horizontal CommitmentsApplies to all sectors

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Please turn on your computersIf they are not already on

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Central Product Classification (CPC)

United Nations Statistics Division

Used to classify Goods and Services

CPC Ver. 1.1

http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=16

Google (Verb) “CPC Ver.1.1”

EXAMPLE:

Hardware consultancy services (CPC Version 1.1: part of 83141)

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CPC 83141

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CPC 83141

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CPC 83141

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CPC 83141

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CPC 83141

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How to find the Schedules

of Specific Commitmentswww.asean.org

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Your Task

You’re an ICT business owner

Either

You have money to invest abroad in ASEAN (You will want to see a business plan from a potential investor)

You need money to expand in Thailand (You will need a business plan to give to the potential investor)

Look at the Member Countries' Horizontal Commitments and Schedules of Specific Commitments for the 8th

Package of Commitments under the ASEAN Framework Agreement in Services

Find a country to either invest in another person’s ICT business or attract to Thailand to invest in your ICT business

Using the internet

Try to find a real business to invest in from another ASEAN country

Or…

Find a business that might want to invest in your business from another ASEAN country

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Conclusion

Don’t expect 100% success from the AEC Integration Process

Everything in ASEAN does not apply to you

Understanding how ASEAN works can be beneficial

If you have question please feel free to send them to me at

[email protected]

Thank you for your interest in my presentation.

Mark Hefner