ASEAN ECONOMIC COMMUNITY (AEC)

2

ASEAN

Political Security

Community (APSC)

ASEAN

Economic

Community (AEC)

ASEAN

Socio-Cultural

Community (ASCC)

3 PILLARS OF ASEAN

AEC BLUEPRINT

• Single Market & Production base

• Competitive Economic Region

• Equitable Economic Development

• ASEAN’s integration into the Global Economy

AEC PRESENTS GOLDEN GROWTH OPPORTUNITIES

AEC is enjoying a golden period. AEC+3 integration would increase regional prosperity.

JP EU US AEC CHINA

0.7 1.9

2.5

5.2 6.2

REAL GDP GROWTH OF AEC

2014 2015 2016F

4.6 4.6 4.9 5.2 Average of 10 countries

Source : IMF, 2016 / OECD, 2015

2016F-2020F (Average)

GDP GROWTH RATE

GDP GROWTH RATE

FORECAST 2016-2020

(AVERAGE)

China Japan Korea

BEHIND THE GROWTH OF AEC

190 million

in 2012

400 million

in 2020

GROWTH OF

MIDDLE CLASS

By 2020 the middle class

population of AEC will more than double to 400 million Source : Nielsen Forecasting

PRODUCTION HUB

FOR +3 COUNTRIES

2012 2014

Japan

South Korea

China

Greenfield FDI into ASEAN

Source : Financial Times from fDi Markets

All are busy attempting to

shape the future of regional

economic integration with

ASEAN as AEC+3

3

UNEVITABLE INTEGRATION TOWARDS AEC+3 ’S PROSPERITY

REGIONAL CONNECTIVITY

CHINA’s “ONE ROAD, ONE BELT” INITIATIVES

ASIAN INFRASTRUCTURE INVESTMENT BANK

Fund for Silk Road Policy , USD 156 billion

Source: ADB, UN (2014)

Road Rail Port

JAPAN ALLIANCE THROUGH INVESTMENT

Significant increase of investment and trade in the region

Funding over next 5 years, USD 110 billion

Nhat Tan Bridge Low-Int. Loan

4

ECONOMIC INTEGRATION

MARKET SIZE

(million people)

China Japan Korea AEC

over 2,178

over 634

AEC+3 GDP

17.8 USD Trillion

27.6 USD Trillion

in 2013 in 2020(F)

Source : IMF’s forecast Source : CIA, Jul2015

A lot of opportunity to capture in the AEC+3 region

KEY CHALLENGES

While businesses are right to be excited about AEC+3, the region also presents challenges

DISRUPTIVE TECHNOLOGY INCREASED COMPETITION

3.4 5.1 5.5 7.15 7.2 14.65 6

8.5 10 13 13.5

28

Vietnam Singapore Philippines Malaysia Thailand Indonesia

2015 Estimate 2017 Potential

E-COMMERCE MARKET SIZE

Source: eMarketer, A.T. Kearney Analysis

(Unit: USD Billion)

SOURCING AND RETAINING HUMAN CAPITAL

51

60

68

49

40

32

Low-skilled

Semi-skilled

High-skilled

Impact No impactSURVEY OF LABOR MOBILITY Impact of AEC on ASEAN Employers

Source: International Labour Organization 2014

5

QUESTIONS FOR RESHAPING A NEW PARADIGM

FOR GROWTH

What opportunities does the AEC+3 present to business?

What are the most effective models and practices for entering

new market?

What can company do to ensure the success of new ventures

in different Asian market?

How are technological development transforming the ways in

which traditional business operate?

6

PROGRAM BY:

AEC+3 BUSINESS FORUM 2016 :

RESHAPING A NEW PARADIGM FOR GROWTH

Date : 16th

March 2016 Venue : Plaza Athenee Hotel

AEC+3

BUSINESS FORUM

2016

AEC+3

TRADE & INVESTMENT

CONSULTING BOOTHS

AEC+3

BUSINESS MATCHING

2016

MOU SIGNING:

AEC+3 CROSS-BORDER

COLLABORATION

Main topics:

• Human capital

management

• Digital technology

• Market integration

First MOU platform that build multilateral collaboration in AEC+3 regional trade

Event

1

Event

4 Event

3 Event

2

This forum will be the

platform for business sector

seeking up-to-date strategic

knowledge and identify best

practices for sustainable growth in this region

The One-stop consulting

booths to serve you the

insightful advice of cross-

border trade and

investment from KBank

and business experts from

CLMVI countries

This event will empower

business network through

building strategic

partnership, with over 300

business matching deals

Highlight industries :

• Food & beverage

• Construction material

• Pharmaceutical .

8