A brief guide to ASEAN and the AEC

A brief guide to ASEAN & theAsian Economic Community

Avondale Investment Management (UK)“ Inspired Investment Solutions”

Avondale Investment Management (UK) www.avondaleinvestment.com Copyright © 2013 Page 1

A WORD FROM THE AUTHOR

Upon my travels and my new life here in SE Asia, I have come across many successful and

erudite businessmen from overseas. Inevitably after exchanging pleasantry’s the subject of

what line of profession both parties work in always comes to the forefront?

When the discussion gets around to potential investment opportunities in SE Asia, I always

ask the question have you heard about ASEAN and the forthcoming Asian Economic

Community of 2015.

Inevitably there is a disappointing common thread to all of their answers and just as in life, in

today’s competitive global business world, ignorance is not bliss and can at best most

certainly lead to a missed business opportunity.

Of course the vision of a region of 620 million people with a gross domestic product of £1.35

trillion as a single market and production base. Is already compelling enough for many multi-

national companies such as Ford, Chevron, Samsung, BMW, Honda, and Philipp’s, (to name

but a few) to have already set up strategic bases across the regions ten member states.

However, what about the rest of the international business community and what about

organisations such as SME’s?

So what actually is ASEAN and what is the forthcoming Asian Economic Community of 2015

and perhaps more importantly for all of those erudite businessmen who feel ignorance is

bliss ……..what will be the potential opportunities for foreign investment within the AEC in

just two years’ time?

Well with the aforementioned questions in mind the brief guide to ASEAN and the Asian

Economic Community is designed to answer all of those questions and more and is written

as an easy to use and quick reference guide to the subject.

The guide covers the most common topics relating to the subject matter and includes a brief

history of ASEAN and a historical timeline of key events. In addition, there is information

pertaining to ASEAN’s structure, abiding philosophy and aims, ASEAN’s global trade

statistics, ASEAN’s affiliate partners and an introduction, and critical analysis of the

forthcoming AEC.

The guide also has a table of member state information including links to each member

states foreign affairs government website.

It should be stressed that this guide is intended to be a handy aid memoir for overseas investors and is no way meant to be definitive but then what guide is! Finally, this guide is the result of many long hours of dedicated hard work carried out by the

author and I would like to personally thank you for taking the time out to read this guide.

Tony Randall

A brief guide to ASEAN and the Asian Economic Community


Authors note and Copyright


Authors note

Every possible effort has been made to ensure that the information contained in this guide is

accurate at the time of going to press, and the author and publishers cannot accept

responsibility for any errors or omissions, however, caused. No responsibility for loss or

damage occasioned to any person acting, or refraining from action, as a result of the

material in this publication can be accepted by the editor, the publisher, or author.

Copyright

The right of Antony Randall to be identified as the author of this work has been asserted by

his accordance with the Copyright, Designs and Patents Act, 1988.

All rights reserved. No part of this publication may be reproduced, transmitted in any form or

by any means, stored in a retrieval system without the prior written permission of either the

author or publisher, or in the case of reprographic reproduction a license issued in

accordance with the terms and licenses issued by Avondale Investment Management UK .

Avondale Investment Management Limited 2013



List of Contents

1. Commentary page 1

2. A brief history of ASEAN pages 1 to 2

3. ASEAN and AEC timeline pages 2 to 3

4. ASEAN’s abiding philosophy and aims pages 3 to 4

5 ASEAN’s Vision page 4

6. ASEAN’s guiding principles and goals page 4

7. The three pillars page 4

8. Structure of ASEAN page 5

9. ASEAN plus six page 5

10. ASEAN plus six and the Regional Comprehensive Economic Partnership page 6

11. Asian Economic Community pages 6 to 14

1. Introduction pages 6 to 7

2. What to expect page 7

3. Benefits pages 7 to 8

4. Progress pages 8 to 9

5. Working towards the AEC free market – the challenges pages 9 to 10

6. The big issue of Myanmar pages 10 to 11

7. Conclusion pages 11 to 14

12. Appendices pages 15 to 24

1. Appendix I ASEAN’s growing investment potential page 16

2. Appendix II Member states - general information pages 17 to 21

3. Appendix III ASEAN – Secretariat Organisational Structure page 22

4. Appendix IV Asean – top ten global traders page 23

13. Bibliography pages 24 to 25

14. About the author pages 26 to 27

A brief guide to ASEAN and the Asian

Economic Community


ASEAN and the Asian Economic Community

Commentary

There may come a point when people across Southeast Asia will wake up one morning at

the end of 2015 to find themselves part of one giant country with ten “provinces”.

Perhaps this maybe a grandiose perception of what the AEC, the Asian Economic

Community may turn out to be in just over two years’ time. However, there is no doubt that

the arrival of the AEC will force allot of people in SE Asia to adopt a less insular outlook.

The vision of a region of 620 million people with a gross domestic product of £1.35 trillion as

a single market and production base is indeed a compelling one which is rapidly moving

towards reality. ASEAN’s top policymakers have spent years behind the scenes working out

ways to streamline and harmonise regulations to ensure that goods, services, capital and

people will be able to move freely from one member country another.

Indeed, the AEC has no shortage of cheerleaders among politicians and executives of

member states and corporations (including many international corporations), that are already

confident about the ability to hold their own in the wider world.

However, for many small businesses and the public at large, reactions range from suspicion

to fear and outright cluelessness. Clearly, a lot of work remains to be done on the public

relations side to ensure that all of the regions citizens will be comfortable in their new bigger

home. (See also Appendix I Graphic - ASEAN’s Growing Investment Potential at the

end of this guide).

A brief History of ASEAN

Much of Southeast Asia was colonised by Western powers prior to World War II. During the war Japan took control of the region, but was forced out following the war as Southeast Asia countries pushed for independence. Though they were independent, the countries found that stability was hard to come by, and they soon looked to each other for answers.

(Opposite left, map of the current

ASEAN Community’s ten member

countries).

In 1961 the Philippines, Malaysia, and Thailand came together to form the Association of Southeast Asia (ASA), a precursor to ASEAN. Six years later in 1967, the members of ASA, along with Singapore and Indonesia, created ASEAN, forming a block that would push back at the dominating western pressure.

The Bangkok Declaration was discussed and agreed upon by the five leaders of those countries over golf and drinks (they later dubbed it "sports-shirt diplomacy"). Importantly, it is this informal and interpersonal manner that characterises Asian politics.


Brunei joined in 1984, followed by Vietnam in 1995, Laos, and Burma (now Myanmar) in 1997, and Cambodia in 1999. Today there are ten member countries of ASEAN: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. (See also Appendix II ASEAN members table of information) ASEAN and AEC formation timeline of key events and historical milestones

Year Key Event /Milestone ASEAN is established

1967 The Association of Southeast Asian Nations or ASEAN was established in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand.

First ASEAN summit held and Bali Concord I agreement reached

1976 The First ASEAN summit was held in February 1976 in Bali. At this summit, ASEAN expressed its readiness to "develop fruitful relations" and mutually beneficial co-operation with other countries of the region. The ASEAN leaders signed the Treaty of Amity and Cooperation in Southeast Asia which is also commonly known as the Bali Concord I.

1977 Japan’s PM Fukuda visited five of the six member ASEAN nations and in a conference in Manila promised SE Asia that Japan renounced forever aggression against its neighbours. This key political statement made on behalf of the Japanese people by their Prime Minister Pat the time was to become known as the ‘Fukuda Doctrine’.

1978 First ASEAN-European Economic Community ministerial meeting held in Brussels.

First tentative steps towards AEC

1992 Singapore, six ASEAN members - Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Brunei agree to remove import taxes on 8,000 goods. They actually meet the deadline in 2010.

ASEAN Regional Forum Formed

1994 ASEAN establishes the ASEAN Regional Forum (ARF), which is focused on security interdependence in the Asia-Pacific region. Besides ASEAN member states, the present participants include Australia, Canada, China, European Union, India, Japan, South Korea, North Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, the Russian Federation and the United States.

1997 First meeting of ASEAN plus Three,(dialogue partners) comprising leaders of the ten ASEAN members and their counterparts from East Asia -- China, Japan, and South Korea.

Chiang Mai Initiative agreement

2000 The Chiang Mai Initiative (CMI) was set up by the group to assist East Asian countries defend their currencies and economy’s in times of future liquidity crises. The initiative came in response to the 1997 East Asian financial crisis. ASEAN, China, Japan, and South Korea launched the multilateral arrangement of currency swaps (CMI).

Bali Concord II

2003 Members adopt the Bali Concord II (adopted from the original 1997 proposal of Asean integration known as the Asean Vision 2020). The new concord calls for the establishment of the Asean Economic Community supported by three pillars - political and security cooperation, economic cooperation and, social-cultural cooperation. ASEAN members met for a two day summit in Tokyo and Japan joins the ASEAN bloc in a pledge to expand trade and join forces on regional security.

China – ASEAN Free Trade Accord

2004 The ASEAN bloc and China sign an accord to create the world's biggest free trade area by removing tariffs for their 2 billion people by the end of the decade.

Inaugural meeting of ASEAN and plus 6 dialogue partners

2005 First meeting of the ASEAN plus Six, (ASEAN’s dialogue partners) and also called the East Asia Summit, comprising the ASEAN countries plus China, Japan, South Korea, India, Australia and New Zealand.

ASEAN bloc members agree charter to ratify the formation of the AEC

2007 ASEAN bloc signs charter giving its ten member states a legal identity, a first step towards its aim of a free trade area by 2015.


Year Key Event /Milestone ASEAN members establish the AEC

2008 The Association of Southeast Asian Nations moves to forge an EU-style free trade community within a free market economy and a social community, signing a charter that makes the bloc a legal entity for the first time and could pave the way for creating a single market within seven years. Japan and the bloc confirm that that they had finished signing a trade agreement after several years of negotiations which will effectively tear down trade barriers between the world's third largest economy and the ten member bloc of ASEAN.

2010 A free-trade agreement between China and the ASEAN bloc finally comes into effect. The six richest members of the bloc scrap tariffs on 90% of goods. The four poorest member country’s (Vietnam, Cambodia, Laos, and Myanmar) will not need to cut tariffs to the same level until 2015.

Bali concord III agreement

2011 Bali Concord III - At the 19th ASEAN Summit on 17 November 2011 in Bali, the ASEAN Leaders signed the Bali Declaration on ASEAN Community in a Global Community of Nations, also known as the Bali Concord III. This is a response to the new reality that today ASEAN as group, confronted by complex and dynamic 21st century global challenges, which defy a single national solution and instead demand cooperation among nations at all level, i.e. bilateral, regional, and global, simultaneously in order to respond more effectively. The Bali Concord III is a manifestation of ASEAN’s global outreach to contribute further in a more coordinated, cohesive, and coherent manner. The action plan is to run parallel along with the new AEC and it reflects ASEAN’s commitment to take an increasing role in addressing global challenges. The group sets a period of ten years 2012 to 2022 to achieve the goals as set out in the Bali Concord III. The summit also brings together for the first time the ten member ASEAN bloc members and) and the blocs eight dialogue partners. President Barack Obama became the first US leader to attend an East Asia summit. Political leaders from eighteen nations discuss key issues such as regional territorial disputes in the South China Sea, democratic reforms in military-dominated Myanmar, mitigating natural disasters, currency, trade, and other issue.

ASEAN members on track to full economic community integration

2013 ASEAN’s four newer members - Vietnam, Laos, Myanmar and Cambodia, are scheduled to lower their tariffs to zero, but with a flexible time frame up to 2025. The ten Asean economies will liberalise the trade of goods, services (including skilled labour), and investment to promote expansion of trade and investment, reduce disparities and lift competitiveness as a group on the world stage by December 2015.

ASEAN’s abiding philosophy and aims

As set out in the ASEAN Declaration, the aims and philosophy of the group is as follows:

To accelerate the economic growth, social progress and cultural development in the region

through joint endeavours in the spirit of equality and partnership in order to strengthen the

foundation for a prosperous and peaceful community of Southeast Asian Nations;

To promote regional peace and stability through abiding respect for justice and the rule of

law in the relationship among countries of the region and adherence to the principles of the

United Nations Charter;

To promote active collaboration and mutual assistance on matters of common interest in the

economic, social, cultural, technical, scientific, and administrative fields;


To provide assistance to each other in the form of training and research facilities in the

educational, professional, technical and administrative spheres;

To collaborate more effectively for greater utilisation of all of the member states agriculture,

and industries. The expansion of the member states: trade, including the study of the

problems of international commodity trade, the improvement of their transportation, and

communication systems, and the raising of the living standards of their people.

ASEAN’s Vision

The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of

ASEAN, agreed on a shared vision of ASEAN as a concert of Southeast Asian nations,

outward looking, living in peace, stability and prosperity, bonded together in partnership in

dynamic development and in a community of caring societies.

ASEAN’s Guiding Principles & Goals

According to the groups guiding document, the Treaty of Amity and Cooperation in

Southeast Asia (TAC), there are six fundamental principles members adhere to:

1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and

national identity of all nations.

2. The right of every State to lead its national existence free from external interference,

subversion, or coercion.

3. Non-interference in the internal affairs of one another.

4. Settlement of differences or disputes by peaceful manner.

5. Renunciation of the threat or use of force.

6. Effective cooperation among themselves.

In 2003 the group agreed on the pursuit of three pillars, or, "communities":

1. Security Community: Apart from minor national boundary incidents, no international

armed conflicts have taken place among ASEAN’s members since its inception four

decades ago. Each member has agreed to resolve all conflicts by use of peaceful

diplomacy and without use of force.

2. Economic Community: Perhaps the most vital part of ASEAN's quest is to create a

free, integrated market in its region, much like that of the European Union. The ASEAN

Free Trade Area (AFTA) embodies this goal, eliminating virtually all tariffs (taxes on

imports or exports) in the region to increase competitiveness and efficiency. The

organization is now looking towards China, Japan, and India to open up their markets in

order to create the largest free market area in the world.

3. Socio-cultural Community: To combat the pitfalls of capitalism and free trade, namely,

disparity in wealth and job loss, the socio-cultural community focuses on disadvantaged

groups such as rural workers, women, and children. Various programmes are used to

this end, including those for HIV/AIDS, higher education, and sustainable development,

among others. The ASEAN scholarship is offered by Singapore to the other nine

members, and the University Network is a group of 21 higher education institutes that aid

each other in the region.


Structure of ASEAN

There are a number of decision-making bodies that comprise ASEAN, spanning from

international to the very local. The most important are listed below:

1. Meeting of the ASEAN Heads of State and Government: The highest body made up of

the heads of each respective government; meets annually.

2. Ministerial Meetings: Coordinates activities in many areas including agriculture and

forestry, trade, energy, transportation, science and technology, among others; meets

annually.

3. Committees for External Relations: Made up of diplomats in many of the world's major

capitals.

4. Secretary-General: The appointed leader of the

organisation empowered to implement policies

and activities; appointed to five year term. The

current Secretary General is currently Lê

Lương Minh of Vietnam, (Opposite Right).

5. Not mentioned above are over twenty five other

committees and one hundred and twenty

technical and advisory groups.

(See also Appendix III - Organisational Structure at the end of this guide).

Global Trade - (See Appendix IV table of top ten ASEAN traders at the end of this

guide)

In ascending order the top four global ASEAN trading partners are the European Union

(11.5%) USA (10.1%), China (10.1%) and Japan (9.5%) continue to be ASEAN’s largest

export markets (Q4 2011).

China (13.3%), Japan, (11.5%), followed by the EU (10.8%) and USA (9.3%), were

the largest sources of ASEAN imports as of again Q4 2011. Total trade with ASEAN top ten

trading partners in 2011 to Q4 amounted to 1.536$ billion (US) with trade in exports

amounting to 810$ billion (US). Imports amounted to 726$ billion (US) The balance of trade

deficit resulting in a surplus credit of 8.4$ billion.

ASEAN plus six

The ‘plus six’ in this instance refers to ASEAN’s

six dialogue partners who are as follows:

Australia, China, India, Japan, New Zealand,

and South Korea.

(Opposite left ASEAN plus six members)


ASEAN plus six and the Regional Comprehensive Economic Partnership - the ARCEP

Various free trade agreements already exist between the ASEAN bloc and the six dialogue

partners. However, most recently negotiations have taken place between both blocs to form

a single free market between all sixteen country members.

The proposed ASEAN Regional Comprehensive Economic Partnership (ARCEP) will form a

single market linking the nations of the Association of Southeast Asian Nations plus the six

dialogue nations i.e. Australia, China, India, Japan, New Zealand, and South Korea.

The market will cover over three billion people and boast a combined gross domestic

product of plus USD15 trillion, which is expected at least USD2.5 billion greater than the

European Union.

With cooperation expected to cover trade, investment, technology, and infrastructure,

ARCEP will also build on existing Free Trade Agreements between the ASEAN bloc and the

six dialogue partners.

The ARCEP negotiations are taking place in parallel with efforts to complete preparations for

the launch of the ASEAN Economic Community at the end of 2015.

The AEC, (more of which later) will create a single economic zone allowing the free flow of

goods, services, investment, skilled labour, and capital across the 10 ASEAN nations.

ASEAN Economic Community - AEC

Introduction

The ASEAN Leaders at their Summit in Kuala Lumpur in December 1997 decided to

transform ASEAN into a stable, prosperous, and highly competitive region with equitable

economic development, and reduced poverty and socio-economic disparities (ASEAN Vision

2020).

At the Bali Summit in October 2003, ASEAN Leaders declared that the ASEAN Economic

Community (AEC) shall be the goal of regional economic integration (Bali Concord II) by

2020.

In addition to the AEC, the ASEAN Security Community and the ASEAN Socio-Cultural

Community are the other two integral pillars of the envisaged ASEAN Community. All the

three pillars are expected to work in tandem in establishing the ASEAN Community by 2020.

Subsequently, the ASEAN Economic Ministers Meeting (AEM) held in August 2006 in Kuala

Lumpur, Malaysia, agreed to develop “a single and coherent blueprint for advancing the AEC

by identifying the characteristics and elements of the AEC by 2015.

This was to also be consistent with the Bali Concord II which set out clear targets and

timelines for implementation of various measures as well as pre-agreed flexibilities to

accommodate the interests of all ASEAN Member Countries.

At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment

to accelerate the establishment of an ASEAN Community by 2015 as envisioned in the


ASEAN Vision 2020 and the ASEAN Concord II, and signed the Cebu Declaration on the

Acceleration of the Establishment of an ASEAN Community by 2015.

In particular, the Leaders agreed to hasten the establishment of the ASEAN Economic

Community by 2015 and to transform ASEAN into a region with free movement of goods,

services, investment, skilled labour, and freer flow of capital.

What to expect

1. Free flow of goods – Eliminating existing non-tariff barriers through improvements in

the transparency of non-tariff measures, and the promulgation of rules and

regulations which conform to international standards and practices. Trade will be

facilitated through the harmonisation and standardised certification for goods of each

country. Tariffs on most goods items will fall to zero in all ten ASEAN economies.

Trade will be easier because of work already done to reduce procedural steps and

streamline examination of goods at customs points within member countries.

2. Free flow of investment – The full establishment of a free and open investment

regime, to boost competitiveness within ASEAN countries, and to attract flows of

investment to the economic bloc. Foreign direct investment in ASEAN will be

liberalised to allow holdings of up to 100% equity in the areas of agriculture, forestry,

fisheries, mining, and manufacturing. In services, shareholders from Asean will still

be capped at 70%. However, countries might want to preserve ownership in some

professions in accordance with their respective laws.

3. Free flow of trade – The removal of all restrictions relating to the provision of

services, and the formation of companies across the borders of the ten ASEAN

member states by 2015, subject to respective national regulations.

4. Free flow of skilled labour – Member countries are aiming to increase the mobility

of labour within the ASEAN region, by facilitating the issuance of visas and

employment passes for professionals and skilled labour, thus intensifying competition

for employment opportunities in the region by 2015. There will be better mobility for

professionals in seven fields– engineers, doctors, dentists, accountants, nurses,

surveyors, and architects. ASEAN will create standardised certification for those

professionals eligible to relocate. Movement of unskilled labour will still be subject to

the laws of member countries.

5. Free flow of capital – Fortify capital market development by harmonising financial

standards through the promulgation of regulations in areas such as the offering of

debt securities, and disclosure requirements, to enhance capital flows throughout the

region.

Benefits

Economic opening up among members will transform ASEAN into a single production and

market base, envisioning a free flow of goods, services, investment, and labour and a freer

flow of capital.

AEC members can benefit from tariff reductions on more goods such as vehicle tyres,

machinery, synthetic rubber, and petrochemicals.


AEC creates new opportunities for members to expand export markets and production

bases. AEC members can benefit from different types of competitive advantage enjoyed by

each member, such as labour wages, culture, or natural resources, and increased

opportunities for direct foreign investment.

Progress

The official ASEAN Economic Community (AEC) Scorecard, published by the ASEAN

Secretariat in May 2012, stipulated that ASEAN had achieved 67.5 per cent of its targets for

the 2008–11 period.

Overall, there has been significant progress in all areas, (pillars) of integration since the

establishment of the AEC in 2007.

Within the report there are obvious disparities in relation to how each area of integration has

progressed. For example while the fourth pillar of the blueprint, ‘integration into the global

economy’, was the best performer at 85.7 per cent, the first pillar on ‘single market and

production base’ was the worst performer, with 65.9 per cent over the same period.

The scores however are not surprising. In the last few years, ASEAN has signed

and implemented five FTA’s , (Free Trade Agreements) and has driven the expanded East

Asia Summit and the ASEAN Regional Forum to help tackle key security challenges

affecting the region.

In addition to the leaders’ meeting, the organisation has held summits with China, Japan,

South Korea, Australia, New Zealand, Russia, and India. This raised the international profile

of ASEAN, especially in an era of East Asia-led global economic recovery. Nevertheless,

ASEAN faces several internal challenges related to non-tariff barriers, sticky labour laws,

lack of infrastructure, and a development gap among members.

A regional economic scorecard is expected to serve as an unbiased assessment tool to

measure the extent of integration among its members and the economic health of the region.

It is expected to provide relevant information about regional priorities and in this way foster

productive, inclusive, and sustainable growth. Moreover, scores create incentives for

improvement by highlighting what is working and what is not.

The AEC Scorecard is also a compliance tool that makes it possible to monitor the

implementation of ASEAN agreements and the achievement of milestones indicated in the

AEC Strategic Schedule.

So how far has ASEAN progressed in meeting its goal of full integration for all member

states by the end of 2015?

According to the press statement issued after the ninth AEC Council Meeting held in

Brunei Darussalam on the 28th of April this year, ASEAN ministers noted that 77.5 per

cent of measures under the AEC blueprint had already been implemented.

The AEC envisages that the key characteristics of the community as 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 will be achieved by

December 2015.


However doubts remain that such an ambitious programme can be established let alone

completed by this date. Independent analysts and critics tend to agree that the challenges to

the realisation of the key characteristics of the AEC still remain intact and unchallenged.

Working towards the AEC free market – the challenges

A single market without borders, ASEAN has applied a common ASEAN visa system that

supports people-to-people contact and connectivity, yet Cambodia and Laos are not

included and Thailand has opted out.

Moreover, the majority of SME’s, (small-medium scale companies) throughout the region are

still unfamiliar with the single market visa scheme, with many not even knowing that the

scheme exists.

Travel and tourism , has become a significant service sector which has continued to boost

ASEAN’s economy and competitiveness, due to the strategic location of such country’s such

as Thailand, and other key factors such as affordability, climate, and diverse heritage and

culture’s.

The tourism sector accounts for 4.6 per cent of ASEAN’s total GDP and the sector employs

9.3 million people, who in turn contribute globally up to 9 per cent of combined GDP and

employment worldwide.

Nevertheless, this huge net contribution has not significantly improved the bloc’s

competitiveness. In fact the competitiveness index gap among ASEAN members is huge.

According to the Global Competitiveness Index (GCI), Singapore is the highest (2 out of 144

countries) among ASEAN countries Malaysia is second highest at 25 and Cambodia is the

lowest at 85. Indonesia’s rank is 50.

Development of member countries - first of all it is important to note that ASEAN as a group

have been aware of the critical issue of minimizing the development gap among ASEAN

members since their initiative for ASEAN Integration (IAI) was established in 2000. Over a

decade has passed since the initiative which was initially set up to help establish and

accelerate economic and social growth of the bloc’s newest members, including Cambodia,

Laos, Myanmar and Vietnam (CLMV).

Nevertheless a report issued from the World Bank at the beginning of 2012 revealed that

ASEAN still had to address the disparities between member countries and reduce the

development gap between its richest and poorest members. Such huge disparities in which

Singapore has the highest GDP per capita at (US$46,241), while Cambodia has the lowest

($897) is hindering the bloc’ economic and social development progress.

Perhaps an even greater challenge to ASEAN’s vision of a liberal market system, and a

future integrated global economy is to how to maintain the bloc’s strategic centrality in the

geo –political arena both at regional and global levels.

Much political and diplomatic effort at executive level has been expended to ensure the

blocs strategic centrality. For example ASEAN successfully formed a Regional

Comprehensive Economic Partnership (RCEP) in November 2011 with its major dialogue

partners the plus six, (Australia, China, India, South Korea, Japan, and New Zealand) which


certainly adds both international creditability and impetus to ASEAN’s first step to an

integrated global economy.

Nonetheless, most recently ASEAN’s cohesiveness has been threatened regionally by the

South China Sea dispute, which involves China, Malaysia, Vietnam, the Philippines, and

Taiwan. If the dispute continues without satisfactory resolution for all parties concerned, it

will be hard for the bloc to operate politically on the global stage along with its economic

cooperation.

The big issue of Myanmar?

Although Myanmar is moving forward with economic reforms and opening up to the

international community, analysts say the country is not yet ready to join a planned

integrated network of Southeast Asian economies in 2015.

A lack of infrastructure, human resources, and technology, along with an unfinished legal

framework for businesses, are a concern for Myanmar as ASEAN attempts to form The AEC

within the next two years.

Myanmar, which in effect has only been transitioning from half a century of military

dictatorship in 2011, has still primarily reliant on an agricultural economy that depends on

rice and bean exports. It’s quite apparent that after just two years of transition the country’s

agricultural sector would struggle to meet requirements for the Asean Economic Community

(AEC).

Rice trader Pyae Sone Oo of the Myanmar Rice Federation stated at a recent seminar in

Rangoon “We’ve been left far behind,” even if we want to catch up, we can only do it

gradually. There are some areas—like the rice industry, overall—which we can say are quite

ready. But there are still many gaps.”

According to data compiled by Myanmar’s Ministry of Agriculture and Irrigation from 2011, 25

per cent of the country’s economic output comes from the farming sector.

The country’s rice exports almost tripled over the past three years, and is expected to reach

1.4 million tons in the current fiscal year, according to the Myanmar Rice Federation.

However, rice traders say they lack solid financial support and continue to encounter

logistical problems, largely due to poor infrastructure.

Pyae Sone Oo said that logistics is a big issue for the country and ports and trading points

were not yet sufficient to upgrade the export sector. The quality of Burma’s rice also makes it

difficult to compete with neighbouring countries such as Thailand and Vietnam, he said.

“If we could delay Myanmar’s full participation in the AEC for about two years, I think we will

be ready,” he said. “But in the meantime, other countries will pass us and I’m afraid we will

remain delayed.

“On the other hand, we need to educate and support farmers to get quality grains so we can

compete with other countries, and capacity building for farmers is needed as well.”


Dr. Maung Maung Lay, vice president of the Union of Myanmar Federation of Chambers of

Commerce and Industry (UMFCCI), agreed that the country was not yet prepared for the

ASEAN single market but said businesspeople were ready to overcome existing hurdles.

“We Burmese people are smart enough and resilient enough to face the challenges of

joining the 2015 Asean Economic Community”.

Nearly every sector of the country’s economy lags behind those of neighbouring countries,

after decades of international isolation, internal political conflicts, and economic hardship

under military rule.

Since reformist President Thien Sein took power in 2011, the United States and the

European Union have eased restrictions to allow companies to do more business in the

Southeast Asian country.

“The sleeping beauty has awakened, and there are many suitors,” said Maung Maung Lay.

“The challenges are quite enormous. Most of the smallest enterprises are technically and

financially weak—there’s no capital market yet.”

Apart from infrastructure concerns, a lack of human resources also hampers growth. The

country is already suffering from brain drain to neighbouring countries with higher wages.

Once the AEC comes into full effect, Maung Maung Lay said, even more qualified workers

could go abroad for employment in more lucrative markets.

Still, Khine Khine Nwe, secretary general of the Myanmar Garment Manufacturers

Association, said her industry was ready to take part in the regional economic community in

2015.

“To look at the bright side, we are quite ready to take orders and we have skilled labourers,”

she said, adding that she runs a garment factor in the country’s commercial capital,

Rangoon.

She said the garment industry had struggled to survive due to international economic

sanctions imposed against Myanmar under the former regime, but that she was optimistic

now that the country has opened its door to foreign investment.

The garment industry was particularly hard hit by American sanctions, she said. The United

States is gradually lifting sanctions to encourage political and economic reforms.

“Whether or not we are ready [for the AEC] depends on the mind-set of people,” Khin Khine

Nwe said. “From experience, those of us in the garment industry know we can overcome the

hardest times. I believe we are ready to face any challenge, good or bad.”

Conclusion

The 45th ASEAN Economic Ministers Meeting, (AEM) and related meetings were held in

Brunei, (on August 20 to 24). The AEM provides a platform for economic and trade ministers

from the ten ASEAN member states and their counterparts from important dialogue

partners, including Australia, Canada, China, India, Japan, New Zealand, Russia, South

Korea, and the United States, to engage in high-level discussions on economic cooperation.


The economic ministers meetings provided a much-needed platform for ASEAN to show that

they are on track towards the ASEAN Economic Community (AEC) by the year 2015.

This is especially so since the target for establishing the AEC is less than two and half years

away. ASEAN has to redouble its efforts to keep pace with the binding commitments made

in the AEC blueprint.

It is now at the mid-point of the implementation of its AEC blueprint and has to take stock,

realign, and adopt a bolder approach to meet all the outstanding, clear evidence current and

future commitments.

More importantly, it will have to avoid any protectionist stance due to the continuing

uncertainty in the global economy. ASEAN will also have to show its collective leadership in

managing the competing interests of its partners in East Asia over the form and pace of East

Asia-wide trade arrangement.

The Aug. 27-Sept. 1 meetings discussed the mid-term review of the implementation of the

AEC blueprint and the AEC scorecard; plans for narrowing the economic development gap

among ASEAN nations to support equitable development; the progress in pursuing the

regional comprehensive economic partnership (RCEP); and the implementation of the

connectivity initiative, among others.

The mid-term review will provide a critical assessment on where ASEAN is with its economic

community efforts.

While there is clear evidence of progress in the implementation of the regional commitments,

the review is likely to highlight gaps that ASEAN countries will have to address primarily in

the following areas:

1. The removal of non-tariff barriers

2. Enhancing trade facilitation measures;

3. Accelerating services and investment liberalization

4. Pushing ahead with more transport facilitation measures

5. Implementing all the roadmaps for the twelve priority integration sectors

6. Improving the ease of doing business

7. Addressing the low utilization of the five free trade agreements of ASEAN with its

partners.

While ASEAN has achieved about 67.5 per cent of its commitments under the AEC

scorecard for the period 2008 to 2011, the remaining areas are also the most difficult ones.

If ASEAN is to accelerate progress in these remaining areas, it will require collective, bold

leadership, and serious commitment to dealing with the different legislative requirements and

domestic issues of ASEAN countries.

It will also have to be looking at regulatory limitations that impede the implementation of

intra- and extra ASEAN measures, and fostering greater coordination among the various

agencies at the national level in implementing regional commitments.


In this respect, the AEC compliance scorecard could be made more rigorous. The current

scorecard fails to sufficiently capture the state of progress in the implementation of regional

commitments by ASEAN countries.

Regular periodic assessments and in-country surveillance could be undertaken by ASEAN

Integration Monitoring Office (AIMO) to alert countries to any issues and roadblocks to

integration. The scorecard could also be made publically available for transparency and

credibility of ASEAN’s community building efforts. This will help garner the support of the

other stakeholders and the international community.

There could be enhanced engagement of the private sector by ASEAN governments at

every stage of the community building effort. Regular private sector engagement can help to

assess the impact and effectiveness of ASEAN policies and measures being implemented.

Feedback from market participants will help to tackle impediments to the free flow of goods,

services, investment, and capital.

The private sector, for its part, could be more proactive and each sector could develop their

own scorecards through their respective trade associations to provide inputs into the AEC

scorecard.

There is also a necessity for ASEAN as a bloc to engage the business community more,

including technical committees, senior officials, and at minister level.

An issue that ASEAN will have to address with urgency is equitable development across the

region. Here, ASEAN has to place more emphasis on the Initiative for ASEAN Integration

and development of the sub-regions such as the ASEAN Mekong Basin Development

Cooperation and the ASEAN connectivity initiatives. There must be a coherent strategy for

bringing about equitable development across the ASEAN region.

Two horizontal issues may need to be addressed here. First is the alignment of sub-regional

development initiatives with the overall AEC initiative. If there is no alignment, there may be

duplication of resources and divergence in policies and goals.

Second is the financing of sub-regional development initiatives. ASEAN is still dependent on

its dialogue and development partners for integration and connectivity initiatives.

For example, the ASEAN Infrastructure Fund is expected to only leverage about US$13

billion up to 2020 with the support of the Asian Development Bank when the infrastructure

requirements based on conservative estimates is about $60 billion annually.

ASEAN will have to also embark on public-private partnership models to fund some of its

priority infrastructure projects. For this, the project proposals have to be attractive and the

governments need to collaborate with the private sector as well as provide the necessary

incentives to defray the project risks involved.

The regional comprehensive economic partnership will be a key initiative ASEAN has to

tackle collectively in order to stay relevant and attractive to East Asia.


This region-wide agreement will position ASEAN as the pivot of East Asia that will generate

trade and investment growth for the region.

This is an excellent opportunity for ASEAN to show it can effectively lead the process to

cobble together a free trade arrangement, which will include the two dynamos of the region,

China and India.

For this to happen, ASEAN will have to agree within its membership on the level of ambition

desired for the free trade agreement; the approach to the negotiations; and inclusion of

issues such as government procurement, competition, intellectual property and so forth.

These are not easy issues to reach consensus on, as not all non-ASEAN partners may want

to offer concessions they have made in favour of ASEAN to the other parties involved.

Indeed, there is a lot for the meetings in Brunei to mull over. But what is necessary will be to

regain the lost ground by pushing ahead with the economic community building with greater

urgency and stamping ASEAN’s centrality on regional architecture through its collective

leadership cognisant of the interests of ASEAN’s partners.

~ Like to know more about Avondale Investment Management UK or perhaps you would

like to know more about the subject matter within this guide?

Then please visit our investment library which has an ever growing number of reports, guides and

other literature which are all intended to assist you in finding the right investment opportunity.

Alternatively we will be very happy to deal with enquires about our services direct by contacting us at

Avondale Investment Management Limited. Company contact details of which can be found by

navigating to the contact page of the website at www.avondaleinvestment.com

On the other hand, you can mail us at either [email protected] or

[email protected]


ASEAN’s Growing Investment Potential Appendix I

June 2013

Courtesy of Samsung Economic Research Institute


ASEAN Member States- General Information - Appendix II

Country/ Item Member states information

Brunei Darussalam Head of State His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin

Waddaulah

Capital Bandar Seri Begawan

National Flag

Population 388,190.00

Language’s Malay, English, and Chinese

Religion Islam

STD code + 673

Internet code .bn

GMT time difference GMT + 8.00 hours - UK

Opening times Banks: 9am to 3pm Monday to Friday, 9am to 11am Saturday. Government offices:7.45am-12.15pm and 1.30pm to 4.30pm Monday to Thursday and Saturday and Retail Outlets:10am to 9.30pm all week

Currency B$ (Brunei Dollar)

Brunei GDP USD$) 20,250,000.00

Brunei GDP growth rate y-o-y Q1 2013

0.9%

Ease of doing business – World Bank Index 2013

2011 ranking: 83 2012 ranking: 79

Ministry of Foreign Affairs & Trade of Brunei Darussalam Website

www.mfa.gov.bn

Cambodia

Head of State His Majesty King Norodom Sihamoni

Head of Government Prime Minister Hun Sien

Capital Phnom Penh

National Flag

Population 14,952,665.00

Language’s Khmer, French, and English

Religion Buddhist

STD code + 855

Internet code .kh

GMT time difference GMT+6 hours - UK

Opening times Banks: 8:30-11:30 14:00-16:00 Monday to Friday –some banks are open on Saturday mornings. Government Offices: 7.30am to 5.00pm Monday to Fridays and Saturday mornings only. Retail Outlets: 9.00 am to 9.00 pm all week.

Currency Riel & USD$

Cambodian GDP (USD$) 27,940,000,000

Cambodian GDP growth rate y-o-y Q1 2013

7.1%



Ministry of Foreign Affairs & International Cooperation of Cambodia Website

www.mfaic.gov.kh



Indonesia Head of State President Susilo Bambang Yudhoyono

Capital Jakarta

National Flag


Language’s Bahasa Indonesian, Dutch & English

Religion Muslim (majority 90%)

STD code +62

Internet code .id

GMT time difference GMT +7 hours - UK

Opening times Banks: 8.00am to 4.00pm Monday to Friday and 8.00am to 11.00am Saturday Government Offices: 8.00am to 4.30pm Monday to Friday Retail Outlets: 10.00am to 10.00pm all week

Currency Rupiah (IDR)

Indonesian GDP (USD $) 914,600,000,000

Indonesian GDP growth rate y-o-y Q2 2013

5.81%



Ministry of Foreign Affairs of Indonesia Website

www.kemlu.go.id

Laos PDR

Head of State President Choummaly Sayasone

Head of Government Prime Minister Thongsing Thammavong

Capital Vientiane

National Flag


Language’s Lao, French, and English

Religion Buddhist

STD code +856

Internet code .la


Opening times Banks: 8.30am to 4.00pm Monday to Friday Government Offices: 8.00am to 4.00pm Monday to Friday Retail Outlets: 8.00 am to 5.00pm Monday to Saturday

Currency Kip

Laos GDP (USD$) 13,980,000,000

Laos GDP growth rate y-o-y Q1 2013

7.8%



Ministry of Foreign Affairs of Lao PDR Website

www.mofa.gov.la



Malaysia

Head of Government The Honourable Dato' Sri Mohd Najib bin Tun Abdul Razak

Capital Kuala Lumpur

National Flag


Language’s Malay, English, Chinese, Tamil

Religion Muslim, Buddhist, and Christian

STD code +60

Internet code .my


Opening times Banks: 10.00am to 3.00pm Monday to Friday, 9.0am to 11.30am Saturday Government Offices: 8.00am to 4.15pm Monday to Friday, Retail Outlets: 10.00am to 8.00pm

Currency Ringgit Malaysian GDP (USD$) 384,300,000,000

Malaysian GDP growth rate y-o-y Q2 2013

1.4%


2011 ranking:14 2011 ranking:12

Ministry of Foreign Affairs of Malaysia Website

www.kln.gov.my

ASEAN-Malaysia National Secretariat Website

www.kln.gov.my/myasean

Myanmar

Head of State President Thein Sein

Capital Nay Pyi Taw

National Flag


Language’s Myanmar (Burmese)

Religion Buddhist, Muslim, and Christian

STD code + 95

Internet code .mm

GMT time difference GMT +6.30 hours-UK

Opening times Banks: 8.00am to 5.00pm Monday to Saturday Government Offices: 9.30am to 4.30pm Monday to Friday Retail Outlets: 9.00am to 5.00pm Monday to Saturday

Currency Kyat Myanmar GDP (USD$) 55,130,000,000

Myanmar GDP growth rate y-o-y Q1 2013

6.2%


2011 ranking: not registered 2012 ranking: not registered

Ministry of Foreign Affairs of Myanmar Website

www.mofa.gov.mm



Philippines Head of State President Benigno S. Aquino III

Capital Manila

National Flag


Language’s Filipino, English, Spanish

Religion Catholic, and Muslim

STD code +63

Internet code .ph

GMT time difference GMT+ 8hours - UK

Opening times Banks: 9.00am to 3.00pm Mondays to Fridays Government Offices: 8.00am to 5.00pm Monday to Fridays Retail Outlets:10.00am to 9.00pm Monday to Saturdays

Currency Peso

Philippine GDP (USD$) 317,500,000,000

Philippine GDP growth rate y-o-y Q2 2013

1.4%



Department of Foreign Affairs of the Philippines Website

www.dfa.gov.ph

Singapore

Head of State President Tony Tan Keng Yam

Head of Government Prime Minister Lee Hsien Loong

Capital Singapore

National Flag


Language’s English, Malay, Mandarin, Tamil

Religion Buddhist Taoist, and Muslim

STD code +65

Internet code .sg


Opening times Banks: 8.30am to 4.30pm Monday to Friday, 8.30am to 1.00pm Saturdays Government Offices: 7.30 & 9.30am to 4.00 and 6.00pm Monday to Friday, 11.30am to 1.00pm Saturdays Retail Outlets: 10.00 am to 9.00pm Monday to Saturday, 11.00am to 7.00pm Sunday

Currency S$ (Singapore Dollar)

Singapore GDP (USD$) 237,300,000,000

Singapore GDP growth rate y-o-y Q2 2013

15.5%



Ministry of Foreign Affairs of Singapore Website

www.mfa.gov.sg



Thailand

Head of State His Majesty King Bhumibol Adulyadej

Head of Government Prime Minister Yingluck Shinawatra

Capital

National Flag


Language’s Thai and English

Religion Buddhist

STD code +66

Internet code .th


Opening times Banks: 8.30 to 5.00pm Monday to Saturdays Government Offices: 8.30 to 5.00pm Monday to Fridays Retail Outlets: 10.00am to 10.pm all week

Currency Baht

Thailand GDP (USD$) 547,400,000,000

Thailand GDP growth rate y-o-y Q2 2013

2.8%



Ministry of Foreign Affairs of Thailand Website

www.mfa.go.th

Vietnam

Head of State President Nguyen Minh Triet

Head of Government Prime Minister Nguyen Tan Dung

Capital Ha Noi

National Flag


Language’s Vietnamese, English, French, and Chinese

Religion None (80%) Buddhist and Catholic

STD code +84

Internet code .vn

GMT time difference GMT + 7 hours - UK

Opening times Banks: 8.30am to 4.00pm Monday to Friday, 8.30am to 11.30am Saturday Government Offices: 7.30am to 4.30pm Monday to Friday, 7.30am to 12.00pm Saturday Retail Outlets: 8.00am to 10.00pm all week

Currency Dong

Vietnam GDP (USD$) 241,700,000,000

Vietnamese GDP growth rate y-o-y Q2 2013

5%



Ministry of Foreign Affairs of Vietnam Website

www.mofa.gov.vn


ASEAN Secretariat Organisational Structure Appendix III

Avondale Investment Management (UK). www.avondaleinvestment.com Copyright © 2013 Page 23

ASEAN Top Ten Global Trade partners Q4 2011 - Appendix 2

Note: source ASEAN merchandise trade statistics database.

Top ten ASEAN trade partner countries/regions -

as of Q4 2011

value in US$ million; share in percent

Trade partner country/region

1/

Value Share to total ASEAN trade

Exports Imports Total trade Exports Imports Total trade

ASEAN 199,587.3 176,620.1 376,207.3 24.6 24.3 24.5

China 81,591.0 96,594.3 178,185.4 10.1 13.3 11.6

European Union-27 92,990.9 78,795.0 171,785.9 11.5 10.8 11.2

Japan 78,068.6 82,795.1 160,863.7 9.6 11.4 10.5

USA 82,201.8 67,370.3 149,572.1 10.1 9.3 9.7

Republic of Korea 34,292.9 40,447.4 74,740.3 4.2 5.6 4.9

Hong Kong 56,696.7 11,218.6 67,915.2 7.0 1.5 4.4

Australia 29,039.3 14,810.8 43,850.1 3.6 2.0 2.9

India 26,520.3 12,595.5 39,115.8 3.3 1.7 2.5

United Arab Emirates 10,569.5 13,797.0 24,366.5 1.3 1.9 1.6

Total top ten trade partner countries 691,558.3 595,044.0 1,286,602.3 85.3 81.9 83.7

Others2/

118,930.9 131,310.1 250,241.0 14.7 18.1 16.3

Total 810,489.2 726,354.1 1,536,843.3 100.0 100.0 100.0

Source ASEAN Merchandise Trade Statistics Database (compiled/computed from data submission, publications and/or websites of ASEAN Member States' national

ASEAN Free Trade Area (AFTA) units, national statistics offices, customs departments/agencies, or central banks)

Notes

- not available as of publication time 1/ identified/ranked based on share of total trade

x not available/not compiled 2/ includes trade of all other countries and those that could not be attributed to specific countries

Some figures may not sum up to totals due to rounding off errors.


Bibliography

A list of research sources

Notwithstanding, the authors own research data and local knowledge, a brief list of research sources

for this guide can be found as follows:

Newspaper and magazine articles

1. The Bangkok Post

2. The Nation

3. Jakarta Mail

4. Vientiane Times

5. South China Daily

6. Look East magazine

7. ASEAN Affairs

8. Yangon Times

9. The Straits Times

10. The Australian

11. The Star

12. The Phnom Penh Post

Websites-News Organisations

13. Reuters website

14. BBC News website

All other websites

15. IMF

16. OECD

17. ASEAN

18. Asian Development Bank

19. CIA World Fact Book

20. The World Bank

21. Wikipedia

22. Samsung Research Institute

Finally, a heart- felt thanks to you all thank you to you all.

Tony Randall



Authors Bio – Tony Randall – A brief guide to ASEAN and the Asian Economic

Community

Tony Randall is an investment management consultant who lives in Thailand.

He is also the author of many guide books including

The Essential Guide to Thailand 2013, The Property

Investment Guide to Thailand, and The Guide to

property and land ownership for foreign nationals and

The Investment Guide to Cambodia.

Tony has over 25 years of investment property industry

experience working for international property

companies.

He founded Avondale Investment Management Limited

a UK based property investment company on the 15th of September 2011.

Having spent many years exploring SE Asia he soon realised that the region with its many

diverse cultures, strategic location ,all year round sunshine, tropical beaches, and fantastic

cuisine, increasingly became his principle destination of choice. The attraction of an

affordable eastern exotic lifestyle became too great a temptation and he relocated to the

region where he has lived for over the past three years.

He soon also realised the potential opportunities for overseas investment in the booming SE Asian property and investment markets for overseas investors, property buyers, overseas workers, and retiree’s. The brief guide to ASEAN and the Asian Economic Community covers the most common

topics relating to the subject matter and includes a brief history of ASEAN and a historical

timeline of key events. In addition, there is information pertaining to ASEAN’s structure,

abiding philosophy and aims, ASEAN’s global trade statistics, ASEAN’s affiliate partners and

an introduction, and critical analysis of the forthcoming AEC.

Contact details Telephone: +44 (0) 754 2701564 UK +66 (0) 861029558 Thailand.

Email: [email protected] or [email protected]

Website: www.avondaleinvestment.com

Postal address:

United Kingdom – Registered Address

Suite 72, Cariocca Business Park, 2 Sawley Road, Manchester. Lancashire, M40 8 BB. England


Also available

Property Investment in the Kingdom of Thailand

Introduction

Until now there has been few comprehensive guide books catering for international property

investors whose primary motivation is investment. This book focuses primarily on private

equity real estate investment in Thailand and secondly on SE Asia.

Much attention has been devoted in recent years to SE Asia and the ASEAN block of

member states and with the Asian Economic Community set to become a reality in 2015.

Many analysts have argued that the SE Asian countries consisting of over 620 million people

and with a combined gross domestic product of 2.3 Trillion (sterling) will become one of the

world’s largest combined economies within the next decade.

Thailand with its democratic constitution set in the heart of SE Asia and the second largest

economy in the ASEAN market is blessed with wonderful climate and a friendly culture. The

Kingdom has been a number one choice for overseas visitors for many years.

However, it is just not about the country, culture, and economy that make Thailand a worthwhile investment opportunity.

Thailand is also very affordable (approximately 35% on average cheaper than the UK) and it is no wonder that an estimated 50% of all foreign nationals who annually move to Thailand are in particular retirees.

With traditional international property markets such as Spain, Greece, Portugal, and the

USA, continuing to underperform Thailand’s emerging private international real estate

market is fast becoming SE Asia’s number one market for international property investors.

So, if you′re planning to take your property investment to the next level in SE Asia, whether it

be finding a second home, a retirement home or looking for the unique international

investment opportunity, who should you turn to for independent advice about your

investment?

The guide to Property Investment in the Kingdom of Thailand is essential reading for commercial real estate investors as well as anyone considering buying a property in Thailand.

Nevertheless, domestic investors should find the book of interest as well, as it covers many same issues, opportunities, and impediments foreign investors face.

The author who lives in Thailand has gained valuable insight into the Thai property market and has 25 years’ experience of working in the UK and International property development and property investment markets.


The guide adopts no nonsense but professional and impartial approach to Thai property

investment opportunities, exposing potential risks and benefits to ensure the selection of the

most appropriate investments.

With almost three hundred pages of information on the Thai property market, this book provides the investor with the most up to date information on issues such as:

current property legislation for foreign nationals seeking investment in Thailand

current capital values and rental rates

investment strategies

finance strategies

economic and institutional factors as well as practical

information relating to pension advice

UK and Thai tax legislation

Non Domicile status for UK citizens abroad

No, other guide encompasses the range of information and advice contained within the book.

So before you decide, avoid the pitfalls and read the guide to Property Investment in the

Kingdom of Thailand it will help save time and money by making you aware of where the

real and safe investment opportunities are and just as importantly what investments to avoid.

UK Copyright Registration no: 284654683 10.4.12

Tony Randall

Property Investment in the Kingdom of Thailand


Also available

The Q and A Guide to Property Ownership in Thailand for Foreign Nationals

Introduction

The potential opportunities for overseas investment in the booming Thailand property market for both the commercial real estate investor and private property buyer; in this, most beautiful of Asian countries is for all to see. However, what are the potential pitfall’s and risk’s associated with purchasing a property and land in the Kingdom? The Q and A Guide to Property Ownership in Thailand for Foreign Nationals is an updated version of the guide which was originally published as part of the Property Investment Guide to Thailand. The guide covers the most common and frequently asked questions relating to the purchase of property and land ownership for foreign nationals in Thailand. The mini guide adopts a professional and impartial approach when tackling the most frequently asked questions by investors seeking to invest in property in Thailand. The primary audience for this guide is the foreign commercial real estate investor and private

real estate property buyer and the guide is intended to be a handy aid memoir for both

private and commercial real estate investors who are seeking potential investment

opportunities in one of the most popular of SE Asian property Markets.

Tony Randall

The Q and A Guide to Property Ownership in Thailand for Foreign Nationals


Also available

The Essential Living Guide to Thailand 2013

Introduction

Whether it is the idea of working for oneself, enjoying more sunshine or simply wishing to

spend more time with one's family, millions of us dream about leaving our 9-5 jobs and

moving abroad.

Therefore, for those of you who are considering avoiding the humdrum of the western

lifestyle and the incessant talk on mortgages, taxes, shrinking pensions, the ever-increasing

unemployment figures and the ever decreasing value of your lifestyle?

The dream of moving to a sunnier climate and exotic life can be more than enough incentive;

to move abroad .Whatever the reason and however long you plan to stay, moving overseas

is not just about deciding what to take with you. Your entire life is about to change and the

more prepared you are, the better the relocation will go.

So why Thailand……….

Well just for starters, Thailand is already one of the most popular tourist destinations’ in the

world with over 19.5 million foreign tourists visiting the country in 2012 and it’s just not the

visitors who enjoy the Thai lifestyle. Over, two million foreign expatriate’s already live and

enjoy their life in amazing Thailand.

The kingdom of Thailand lies in the heart of Southeast Asia blessed with natural beauty, its

islands are amongst the most scenic and beautiful in the world. Recognised as one of the

friendliest and relaxing countries in the world, this is a country with something for everyone.

Let us not also forget that perhaps, the most distinctive point about Thailand is the Thais.

This nation known as the ‘Land of Smiles’ deserves its name for the Thais are always

smiling, easy-going, and very tolerant of people from other nationalities. Thai people are

rightly for known for their hospitality and for being kind, warm, and welcoming to foreign

nationals.


So whether you’re are an overseas’ worker, retiree, grey gapper, taking a sabbatical, looking

for a new life abroad, an ex-pat or even looking for just a holiday home The Essential

Living Guide to Thailand 2013 is your indispensable guide to this most beautiful and

exotic part of the world.

The author, drawing on all his experience of living in this fascinating of Asian countries,

takes the hassle out of relocating by providing practical advice on every step of the process

from the initial research, visa requirements, moving your possessions abroad and finding a

home.


There is also advice on how to cope with culture shock and language barriers; and the latest

information on taxation, work visa’s, international education, lifestyle issues ,property

investment ,health issues, marriage and divorce, planning and retirement and information on

gay Thailand .

Also included are four mini guides to Thailand’s most popular holiday destinations Bangkok,

Chaing Mai, Pattaya, and Phuket and also an up to date and comprehensive directory of

over 600 suppliers, contacts, and services in Thailand.

With almost 500 pages The Essential Guide to Thailand 2013 is not only the most in-depth and indispensable guide you are ever likely to read about Thailand but it is also your key to escaping the rat race……..

UK Copyright Registration no: 28465468210.4.12

Tony Randall



Also available

A guide to property and land ownership in SE Asia for foreign nationals

Introduction

The international property markets since the global financial crisis and the continuing Eurozone crisis have been in a state of variable flux for some time.

Today, investors seek the stability and simplicity of property to gain good returns on

investment.

Equities or stocks which can be volatile but despite current world economics, property is

regarded as historically stable.

Many overseas investors now see Southeast Asia as an emerging market for property

investment for potential investment opportunities, whether it be in terms of a pure investment

opportunity or second home investment. Because home ownership is so common in west,

many also want to buy their own home or otherwise control their property.

Therefore, for the potential investor, what are the legal requirements in terms of investing

and purchasing property or land in SE Asia and how do they differ for the overseas investor?

Written by a property professional and expatriate the guide takes the investor through the

complexities and potential pitfalls of investing in property in SE Asia

Covering the ten most popular property markets in SE Asia including China, the Guide to

property and land ownership in SE Asia provides the investor with the latest up to date

information for foreign nationals such as leasehold legislation, company ownership, foreign

national property ownership rights, and property taxation.

Succinct and readable, the guide is designed to assist any prospective investor avoid the

pitfalls and enjoy the benefits of investing in the property markets of SE Asia.

Note: Property legislation in Thailand is covered in depth in the guide to Property investment in the Kingdom of

Thailand and is not included within this guide.

Tony Randall

A guide to property and land ownership in SE Asia for foreign nationals


Company Disclaimer

Whilst the information contained within this guide has been to the best of our knowledge carefully and

meticulously researched. All information contained within the guide is subject to interpretation and external

economic, political, legal, and financial factors which are beyond our control.

Furthermore, every possible effort has been made to ensure that the information contained in this guide is

accurate at the time of publication and we make know no warranty about the accuracy or completeness of the

content to the maximum extent permitted. No responsibility for loss or damage occasioned to any person acting,

or refraining from action, as a result of the material in this publication can be accepted by the company and

author.

Contact:

Avondale Investment Management (UK)

Suite 72 Cariocca Business Park ,2 Sawley Road ,Manchester.Lancashire.M40 8BB.United Kingdom.

Telephone:

+44 (0) 7542 701564+66 (0) 861029556

E mail:

[email protected]@hotmail.com

Website :

www.avondaleinvestment.com

‘ Inspired Investment Solutions’

A brief guide to ASEAN and the AEC

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