Benefits of the ASEAN Economic Community – AEC

asean economic community aec

ASEAN member states finally paid off when the application of the ASEAN Economic Community got injected to amalgamate the economic integration of the region

 

An inordinate length of time and efforts of the ASEAN member states finally paid off when the application of the ASEAN Economic Community got injected to amalgamate the economic integration of the region on December 31, 2015. On both levels, either national or regional, each and every member affiliated with this municipal will be able to yield major benefits out of the AEC.

It is mentioned in an official statement titled “Thinking Globally, Prospering Regionally – ASEAN Economic Community 2015” by the ASEAN that, the incorporation of the AEC has impacted on the demographic and economic situation in a very positive and productive manner from 1990 to 2012, few statistics are as follow:

 

Statistics

  • The total GDP of the ASEAN member states rose from $334.1 billion to $2,311.3 billion.

  • The average GDP per capita escalated from $760.9 billion to $3,748.4 billion.

  • The total intra-trade activity turned from hundreds to thousands of billions of dollars.

  • The standard of living of the individual has been improved since the establishment of the AEC, moreover, the infant mortality rate has also declined.

  • Another significant point of the report is the deterioration of poverty rate in these states from 45.0% to 15.3%.

 

AEC-Pillars

  • To commercialize the goods and services across the Southeast Asian region, it is necessary to have a single market and production base.

  • To obtain maximum benefits from the AEC, individuals and companies should integrate and engage themselves with the process of AEC.

  • No nation-state can survive in isolation, so ASEAN will look forward to integrate with the global economy.

  • The region should put more emphasis on the effectiveness and capacity of its production and export. While on the other hand free competition in its regional frontiers.

 

Achievements and objectives

ASEAN members are comprised of a market of more or less than 600 million people whose daily consumption is in billions, shared with a GDP of US$3 trillion. This is one place enticed by many investors and has a vivacious and developing economy, indeed it represents fantastic opportunities for those who are interested in pursuing their business as their venture won’t be exploited.

  • Trade

For the ASEAN-6 members including Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand, the free flow of goods were practiced in 2010, as no duties were applied on the above mentioned countries and duties were eradicated. For the newly added member comprising of Cambodia, Lao, Myanmar and Vietnam, tariff lines were detached. Other implications are also taking place including the reduction of technical barriers for the purpose of trade.

Agreements like the ASEAN Framework Agreement on Services (AFAS) are also being signed so as to achieve the free flow of services.

  • Investment

To attract the investors from across the border, ASEAN is creating an environment in which best practices and commitments are being made for the safeguard and deliverance of cross-border investment. Agreements such as ASEAN Comprehensive Investment Agreement (ACIA) is created a positive vibe for investors of different nationalities.

  • Labor

The ASEAN Agreement on the Movement of Natural Persons (MNP) is an agreement signed which has delivered a legitimized framework so as to affluence the cross-border movement of people from different ethnicities, in this way the people will be able to engage in trade and investment. Basically, this concept is generated to facilitate the free flow of labor from one part of the region to another for better opportunities and integration.

 

AEC Connect is an umbrella under which there’s a universe of opportunities for all classes from Traders down to Labor, hence, it is highly recommended to forge ahead via our community and Join in to seize for free!

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