Final focus asean

40
FOCUS ASEAN SUBMITTED BY: - Jatin Rastogi Akhilesh Agarwal Aravind V.N Mayank Singhal Mudit Chopra Atul Ghangas Asif Quadri

description

ASEAN

Transcript of Final focus asean

Page 1: Final focus asean

FOCUS ASEAN

SUBMITTED BY:-

Jatin RastogiAkhilesh

AgarwalAravind V.NMayank SinghalMudit ChopraAtul GhangasAsif Quadri

Page 2: Final focus asean

ASEAN(The Association of Southeast Asian Nations)

Established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration.

Founding Fathers of ASEAN are Indonesia, Malaysia, Philippines, Singapore and Thailand.

Member Countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Australia and New Zealand.

AIMS AND PURPOSES:- To accelerate the economic growth, social progress, cultural and scientific

development by active collaboration and mutual assistance To promote regional peace.

Page 3: Final focus asean

Focus: ASEAN-Australia-New Zealand (Free Trade Area)

On 27 Feb 2009, the trade ministers of all ten ASEAN members, Australia and New Zealand signed the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

Page 4: Final focus asean

Economic Outlook It is a geo-political and economic organization of ten countries .

Covers a land area of 4.46 million km², 3% of the total land area of Earth, with a population of approximately 600 million people, 8.8% of the world population.

GDP(PPP)-US$ 3,084 billion

The average of economic growth of ASEAN-5 during 1989–2009 were Singapore with 6.73 percent, Malaysia 6.15 percent, Indonesia 5.16 percent, Thailand 5.02 percent and the Philippines 3.79 percent.

• s

Page 5: Final focus asean

...Cont’d

ASEAN has concluded free trade agreements with China (expecting bilateral trade of $500 billion by 2015), Korea, Japan, Australia, New Zealand and most recently India. The agreement with People's Republic of China created the ASEAN–China Free Trade Area (ACFTA)

Page 6: Final focus asean

ASEAN STATISTICS

Page 7: Final focus asean

Department of CommerceCOUNTRY WISE ASEAN EXPORT Export :: Region-wise all countries Dated: 2/1/2012

Region:  ASEAN Values in US$ Million

S.No. Country 2009-2010 2010-2011 %Growth

1 INDONESIA 3,063.36 6,245.33 103.87

2 MYANMAR 207.97 334.42 60.81

3 THAILAND 1,740.16 2,792.80 60.49

4 VIETNAM 1,838.95 2,659.56 44.62

5 CAMBODIA 45.54 63.91 40.33

6 MALAYSIA 2,835.41 3,956.98 39.56

7 SINGAPORE 7,592.17 10,302.71 35.7

8 AUSTRALIA 1,384.96 1,717.03 23.98

9 PHILIPPINES

748.77 882.74 17.89

10 BRUNEI 24.44 25.29 3.48

11 LAO PD RP 16.93 14.06 -16.94

12 NEW ZEALAND 255.17 194.00 -23.97

  Total 18,113.71 27,277.81 50.59

Page 8: Final focus asean

S.No. Country 2009-2010 2010-2011 %Growth

1 VIETNAM 521.81 1,064.90 104.08

2 CAMBODIA 5.05 8.01 58.57

3 THAILAND 2,931.52 4,272.09 45.73

4 PHILIPPINES 313.07 429.39 37.15

5 NEW ZEALAND 499.21 625.21 25.24

6 MALAYSIA 5,176.78 6,523.58 26.02

7 INDONESIA 8,656.66 9,918.63 14.58

8 SINGAPORE 6,454.57 7,139.31 10.61

9 AUSTRALIA 12,407.37 10,789.00 -13.04

10 MYANMAR 1,289.80 1,017.67 -21.1

11 BRUNEI 428.65 234.17 -45.37

12 LAO PD RP 20.05 0.22 -98.91

Total 25,797.96 30,607.96 18.64

Department of CommerceCOUNTRY WISE ASEAN IMPORT Import :: Region-wise all countries Dated: 2/1/2012

Region:  ASEAN Values in US$ Million

Page 9: Final focus asean

Department of Commerce

COMMODITY WISE ASEAN EXPORT

Export :: Region-wise all commoditiesDated: 2/1/2012

Values in US$ Million

Sorted on HSCode

Region: ASEAN

S.No. HSCode Commodity 2009-2010 2010-2011 %Growth

23 23RESIDUES AND WASTE FROM THE FOOD INDUSTRIES;

PREPARED ANIMAL FODER. 752.63 882.84 17.3

27 27MINERAL FUELS, MINERAL OILS AND PRODUCTS OF

THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES.

4,080.74 8,286.34 103.06

29 29 ORGANIC CHEMICALS 894.03 1,290.81 44.38

71 71NATURAL OR CULTURED PEARLS,PRECIOUS OR

SEMIPRECIOUS STONES,PRE.METALS,CLAD WITH PRE.METAL AND ARTCLS THEREOF;IMIT.JEWLRY;COIN.

973.29 948.26 -2.57

83 84NUCLEAR REACTORS, BOILERS, MACHINERY AND

MECHANICAL APPLIANCES; PARTS THEREOF. 919.66 1,150.05 25.05

86 87VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING

STOCK, AND PARTS AND ACCESSORIES THEREOF. 370.31 1,321.55 256.87

88 89 SHIPS, BOATS AND FLOATING STRUCTURES. 1,539.91 2,396.62 55.63

Page 10: Final focus asean

Department of Commerce

COMMODITY WISE ASEAN IMPORT

Import :: Region-wise all commodities

Dated: 2/1/2012

Values in US$ Million

Sorted on HSCode

Region: ASEAN

S.No. HSCode Commodity 2009-2010 2010-2011 %Growth

15 15ANIMAL OR VEGETABLE FATS AND OILS AND THEIR

CLEAVAGE PRODUCTS; PRE. EDIBLE FATS; ANIMAL OR VEGETABLE WAXEX.

4,233.83 4,766.26 12.58

27 27MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR

DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES. 6,374.28 7,581.19 18.93

29 29 ORGANIC CHEMICALS 1,323.55 1,934.53 46.16

39 39 PLASTIC AND ARTICLES THEREOF. 706.45 1,100.53 55.78

83 84NUCLEAR REACTORS, BOILERS, MACHINERY AND

MECHANICAL APPLIANCES; PARTS THEREOF. 2,353.14 2,775.61 17.95

84 85

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS,

TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS.

2,375.56 3,151.28 32.65

Page 11: Final focus asean
Page 12: Final focus asean

REGION – WISE SHARE OF INDIA’S EXPORT (2010-2011)

Page 13: Final focus asean

REGION – WISE SHARE OF INDIA’S IMPORT (2010-2011)

Page 14: Final focus asean

GROWTH RATE (%) IN INDIA’S TRADE WITH MAJOR REGIONS (2010-2011)

Page 15: Final focus asean

INDIA’S TRADE WITH MAJOR REGIONS OF THE WORLD (2010-2011)

Page 16: Final focus asean
Page 17: Final focus asean

Market Access Initiative(MAI)

Objectives:• To promote India’s Export on sustained basis during 10th five year plan.• To evolve specific strategy for enhancement of export accessing new market or

increasing share in existing market.• Specific market, specific product approach through market study/survey.

Scope:• To identify priorities of research relevant to Dept. of Commerce and sponsor studies

consistent with priorities;• WTO studies for evolving WTO compatible strategy• To support EPCs/Trade Promotion Organizations in undertaking market

studies/survey for evolving proper strategy;• To support marketing projects abroad on Focus Product – Focus country basis.

Page 18: Final focus asean

Funded Marketing Activities

-Opening of showrooms.

- Opening of warehouses.

- Display in international Dept. stores.

- Publicity campaign and Brand promotion.

- Participation in trade fair.

- Research & Product development.

- Reverse visits of the prominent buyers from project focus countries.

- Export potential survey of the states.

- Registration charges for product registration abroad for pharmaceuticals, bio-

technology and agro-chemicals.

- Testing charges for engineering products abroad.

- Support cottage and handicrafts units.

- Support recognized associations in industrial clusters for marketing aboard.

Page 19: Final focus asean

Financial Assistance

Financial assistance may be given to:• Departments of Central Government and organization of Central/ State

Governments• Export Promotion Councils• Registered Trade Promotion Organizations• Commodity Boards• Apex Trade Bodies recognized under EXIM-Policy of Government of

India• Recognized Industrial clusters• Individual exporters (only for testing charges of engineering products

abroad and registration charges of pharmaceuticals, bio-technology and agro-chemicals)

Page 20: Final focus asean

Marketing Development Assistance (MDA)

It is operated under Department of Commerce to stimulate and diversify the country’s export trade, through below mentioned activities:

(i) Assist exporters for export promotion activities abroad.

(ii) Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities.

(iii) Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members.

(iv) Assist Focus export promotion programmes in specific regions broad like Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.

(v) Residual essential activities connected with marketing promotion efforts abroad.

Page 21: Final focus asean

Eligible activities under Focus Area Programs

S.No. Permissible items of expenditure under MDA

Percentage of funding under MDA

1. Participation in International Fairs/exhibitions organized by EPCs etc.Sponsoring BSMs/Trade delegations abroad by EPCs etc.

As applicable in non-focus area with ceiling of Rs. 10 lakhs.

2. Reverse trade visits of prominent foreign buyer / delegates / journalists to India for participation in BSMs/exhibitions etc.

 

i) Return air-fare travel expenses in economy excursion class upto the entry point in India.

i) 100% (subject to a ceiling of Rs. 60,000/-

ii) Venue charges (ii)&(iii) As applicable in non-focus area with ceiling of Rs. 10 lakhs.iii) All other organizing expenditure

All other expenses relating to stay, per diem allowance, local travel etc. of delegates invited from abroad are to be met by the EPC or by sharing between the organizers and delegates.

 

3. Translation facilities in foreign languages and vice versa. 60%

4. Product catalogue in CD ROM 60%

Page 22: Final focus asean

INDIA & ASEAN India became a sectoral dialogue partner of ASEAN in 1992.

In August 2009, India signed a Free Trade Agreement (FTA) with the ASEAN members in Thailand.

India’s trade with ASEAN countries has increased from US$ 30.7 billion in 2006-07 to US$ 45.34 billion in 2009-10.

Singapore continues to be the single largest investor in India amongst the ASEAN countries with foreign direct investment (FDI) inflows into India, totaling US$ 2.4 billion in 2009-10.

Page 23: Final focus asean

Singapore total exports into India was US$ 10,302.71 million in the year 2010-11, an increase of 30.48% as compared to year 2009-10,

comprising mainly of mineral fuels and oils, ships, boats and floating structures and natural pearls, gems and jewelry.

In case of imports it was US$ 9,918.63 million in the year 2010-11 which shows an increase of 10.6 % as compared to year 2009-10.

Indonesia is the second largest FDI investor amongst the ASEAN countries. FDI inflows from Indonesia into India was US$ 604.28 million during April 2000-March 2010.

Thailand FDI inflow during the period April 2000-March 2010 into India was US$ 77.97 million.

Myanmar FDI inflows into India totaled US$ 8.96 million in the period April 2000-March 2010.

Page 24: Final focus asean

INDIA ASEAN TRADE

• Asia and ASEAN region is India’s largest trading partner. During the period April- September 2010-11, Asia and ASEAN region accounted for about 58% of India’s trade (exports and imports). Europe and America, together, account for around 31% of India’s trade.

• Major Commodities of Export & Import – ASEAN

The Principal Commodities of export include : Petroleum Products, Oil Meals, Gem and Jewellery, Electronic

Goods, Cotton Yarn/RMG Cotton, Machinery and Instruments, etc.

The major commodities imported from this region are: Coal/Coke/Briquettes, Vegetable oils, Petroleum Oils, Electronic

Goods, Organic Chemicals, Machinery except Electrical Machinery,

etc.

Page 25: Final focus asean

Export House/Trading House Certification

• The objective of the scheme is to recognise established exporters as Export House, Trading House, Star Trading House and Super Star Trading House with a view to build marketing infrastructure and expertise required for export promotion.

• Merchant as well as Manufacturer exporters, service providers, Export Oriented Units (EOUs)/ units located in Export Processing Zones (EPZs)/ Electronic Hardware Technology Parks (EHTPs)/ Software Technology Parks (STPs) shall be eligible for such recognition.

Page 26: Final focus asean

• The eligibility criterion for such recognition shall be either on the basis of the FOB/Net Foreign Exchange (NFE) value of export of goods and services, including software exports made directly as well as services.

• The exports made by a subsidiary of a limited company shall be counted towards export performance of the limited company for the purpose of recognition. For this purpose, the company shall have the majority share holding in the subsidiary company.

Page 27: Final focus asean

ZERO DUTY EPCG SCHEME

• The scheme has been introduced in the new Foreign Trade Policy 2009-14 for specified sectors.

• New sectors included under zero duty EPCG Scheme w.e.f 23.08.2010 are paper & paperboard and articles thereof, ceramic products, glass & glassware, rubber & articles thereof, plywood and allied products, marine products, sports goods and toys added.

• Validity is for 9 months , export obligation is of 6 years and can be extended to 2 years only.

Page 28: Final focus asean

Major Findings & Observations about

ASEAN Trade

Favorable Factors Low wages. High productivity growth. Diverse production conditions. Proximity to large Asian markets. Regions liberalising trade policy agreements.

Page 29: Final focus asean

Non Favorable Factors

Shortage of skilled labor & professionals.

Inadequate physical & institutional infrastructure ( such as Roads & transportation facilities , communication , trade facilitation measures , Intellectual property rights protection measures).

Lack of developed system for setting product standards & conformity assessment procedures.

Volatility in exchange rates.

Page 30: Final focus asean

Some facts about ASEAN Exports

Computer Components

While the ASEAN region is the world’s second largest exporter of computer components, it faces a major challenge from China.

Cotton Woven Apparel

Tariff reductions have helped facilitate a small but growing amount of integrated production of cotton woven apparel among ASEAN countries. However, trade programs such as free trade agreements have more heavily influenced regional integration.

Page 31: Final focus asean

Cont’d Hardwood Plywood and Flooring

Access to legally sourced and sustainable wood supplies is an important competitive factor affecting integration, export competitiveness, and inbound investment in the ASEAN hardwood plywood and flooring industry.

Healthcare Services

Growth of private healthcare firms in the ASEAN market has generated increased trade and investment in healthcare services.

Page 32: Final focus asean

Cont’dMotor Vehicle Parts

ASEAN has been successful at meeting critical Roadmap targets and facilitating regional integration within the automotive sector. Despite these achievements, the regional automotive industry and market have yet to fully integrate.

Palm Oil

The Roadmap for Integration of Agro-based Products has had far less impact on the structure of the ASEAN palm oil industry than have multinational corp. and

international groups.

Page 33: Final focus asean

CHINA A THREAT TO ASEAN COUNTRIES

China is a major competitor of ASEAN countries in attracting foreign investment and in integrating regional production chains. However, ASEAN recently concluded an FTA with China, because China has become an important hub in Asian supply chains. ASEAN countries hope the FTA will offer better opportunities to participate in these networks. ASEAN offers an alternative production location to China for multinational firms wanting to diversify their operations to reduce business and political risks.

Page 34: Final focus asean

IMF MEMBERS• Brunei Darussalam October 10, 1995• Cambodia December 31, 1969• Indonesia April 15, 1954• Lao People's Democratic Republic (Laos) July 5, 1961• Malaysia March 7, 1958• Myanmar (Burma) January 3, 1952• Philippines December 27, 1945• Singapore August 3, 1966• Thailand (Siam) May 3, 1949• Vietnam Sept. 21, 1956

Source: www.imf.org

Page 35: Final focus asean

WORLD BANK MEMBERS - IBRD• Brunei Darussalam Oct 10, 1995• Cambodia Jul 22, 1970• Indonesia Apr 13, 1967• Lao People's Democratic Republic Jul 5, 1961• Malaysia Mar 7, 1958• Myanmar Jan 3, 1952• Philippines Dec 27, 1945• Singapore Aug 3, 1966• Thailand May 3, 1949• Vietnam Sep 21, 1956

Page 36: Final focus asean

WTO MEMBERS• Brunei Darussalam January 1, 1995• Cambodia October 13, 2004• Indonesia January 1, 1995• Lao People's Democratic Republic February 19. 1998

(Observer Government)• Malaysia January 1, 1995• Myanmar (Burma) January 1, 1995• Philippines January 1, 1995• Singapore January 1, 1995• Thailand January 1, 1995• Vietnam January 11, 2007

Page 37: Final focus asean

RECENT NEWS ARTICLES

“ADB to tie up with India and China for ASEAN Infrastructure Fund”

Multilateral funding agency, Asian Development Bank (ADB), is keen to rope in India and China in the newly created Association of Southeast Asian Nations (ASEAN) Infrastructure Fund for funding infrastructure projects in the region.

Jan 21, 2012, www.business-standard.com

Page 38: Final focus asean

“ASEAN, World Bank reaffirms partnership”

The World Bank has reaffirmed its support for ASEAN's economic integration, particularly at a time when the Asia-Pacific region is rapidly expanding, a press statement from the ASEAN Secretariat said.

February 09, 2012, www.asean-society.org

Page 39: Final focus asean

“Better job scope for Indian pros in Asean countries”

Come next financial year, and India and Asean (Association of Southeast Asian Nations) are set to facilitate an easier and more regular movement of professionals between them.

The agreement is expected to open up greater job opportunities for Indian professionals in the IT, healthcare, designing, research and other sectors.

Feb 19, 2012, www.business-standard.com

Page 40: Final focus asean

Thank

You!!!