Download ASEAN POTENTIAL MAR

EU-ASEAN BUSINESS
NETWORKS
Your Gateway to South-East Asia
European Association for Business
and Commerce in Thailand
GATEWAY TO ASEAN
The Association of Southeast Asian Nations (ASEAN)
Free flow of
ASEAN Charter
ASEAN formed
Indonesia
Malaysia
Philippines
Singapore
Thailand
Myanmar and Laos joined
Cebu Declaration
Brunei Darussalam joined
AIA
Vietnam joined
PTA
AFTA
AFAS
Bali Concord II
Cambodia joined
Goods
Services
Investment
Skilled labour
Freer flow of capital
ASEAN Economic
Community (AEC)
GATEWAY TO ASEAN
ASEAN key facts
ASEAN Population: 625 million (9% of the world's population); Median age: 28 years
EU Population: 500 million (7.3% of the world’s population); Median age: 40 years in EU
ASEAN GDP: USD 3.3 trillion; GDP Growth (2013): 5.2%
EU GDP: USD 16.6 trillion; GDP Growth (2013): 0.1%
Foreign Direct Investment (FDI): US$115 billion
The EU is the biggest provider of Foreign Direct Investment into ASEAN. EU FDI is 22% of the total in 2013
ASEAN Economic Community (AEC): moving towards a single market
4 Pillars: Single Market and Production Base, Competitive Economic Region, Equitable Economic Development ,
Integration into the Global Economy
Free Trade Agreements in place: China (ACFTA), Japan (AJCEP), Korea (AKFTA), India (AITIG), Australia-NZ
(AANZFTA), and EU has concluded a FTA with Singapore and is negotiating FTAs with several other ASEAN
countries (Vietnam, Thailand, Malaysia, Indonesia)
GATEWAY TO ASEAN
ASEAN key facts
Year of entry
into ASEAN
Population
GDP
GDP per
capita
Million
$Billion
% of US level
Real growth of GDP,
2003 – 13
%
Brunei
1984
0.4
17
78
1.1
Cambodia
1999
15.1
15.5
2
7.8
Indonesia
1967
249.9
868.3
7
5.8
Laos
1997
6.8
10.9
3
7.8
Malaysia
1967
29.7
312.4
20
5
Myanmar
1997
62.8
59
2
8.6
Philippines
1967
98.4
272
5
5.4
Singapore
1967
5.4
295.7
103
6.3
Thailand
1967
67
387.2
11
3.8
Vietnam
1995
91.7
171.2
4
6.4
Source: HIS, McKinsey Global Institute Analysis
GATEWAY TO ASEAN
ASEAN key economics
Manufacturing oriented
Service oriented
Singapore
Malaysia
Major Industries:
Petroleum, refining,
ship, repair,
offshore platform,
financial services,
trading, consumer
electronics,
information
technology
products and
services, and
pharmaceuticals
Major industries:
tourism, petroleum
and liquefied
natural gas,
electronics
equipment, textiles,
chemicals, wood
and wood products,
agriculture
processing, palm
oil, rubber, tin
mining, and logging
Thailand
Philippines
Indonesia
Agriculture and resource oriented
Vietnam
Major industries:
Major industries:
Major industries:
IT services,
Major Industries: garments, shoes,
tourism, healthcare,
semiconductors
automobiles and
tourism, oil and machine building,
and electronic
parts, textiles and
gas, electrical
mining, coal,
products,
garments, electrical
appliances,
steel, cement,
transport
appliances,
plywood, textiles
chemical
computers, IC,
equipment,
fertilizer,
glass,
and
apparel,
plastics, cement,
pharmaceuticals,
tires,
oil,
mobile
footwear,
jewelry, furniture,
garments,
phones,
agricultural
footwear, copper, mining, cement,
electronics,
processing, fishery
chemical
petroleum
products, rice,
products, coconut fertilizers, food wooden products,
rubber, tobacco,
food processing
oil, fruits, food
and rubber
tungsten
and rice
processing, fishing
Lao PDR
Myanmar
Major industries:
Cambodia
Major industries:
oil and natural
Major industries:
tourism,
gas, garments,
Brunei
construction,
tourism,
wood and wood
garments, mining garments, textiles,
Major industries:
products, copper,
footwear,
of copper, tin,
petroleum
tin, tungsten, iron,
refining,
construction,
gold, and gypsum,
cement,
timber, wood
petroleum,
wood and wood
construction
products, gem
products, coffee,
liquefied natural
materials, jade
mining, cement,
agricultural
gas, construction,
and gems,
processing,
garments
fishing, rice,
agricultural
tobacco and
cement, rubber,
processing,
rubber
and electric
pulses, beans,
power
fish, rice
GATEWAY TO ASEAN
EU - ASEAN trade performance
GATEWAY TO ASEAN
WHO
&
WHERE
EU - ASEAN Business Networks
European
Association for
Business and
Commerce in
Thailand
EU BUSINESS NETWORKS IN THE REGION
WHAT
The projects
Objectives
Target group
Expertise
Attracting EU businesses into the region and supporting them in their market entry
activities; Increasing EU Business’ leverage towards the ASEAN Governments.
Increase and improve export and investment of EU businesses to the ASEAN
regional market.
European businesses in Europe, in particular SMEs, with an interest in ASEAN
markets. Existing European companies in ASEAN which need to increase their
presence and visibility.
Joint expertise, knowledge and experience of well-established European business
support organizations with an extensive network in ASEAN and the EU.
PHILIPPINES –
THE RISING TIGER OF ASIA
ASEAN ROADSHOW
VILNIUS, LITHUANIA
MAY 12, 2015
Philippines - Country facts
Economic overview
• GDP growth 2014 – 6.1%. Government target 6-7% in 2015-2016.
• GDP is heavily dependent on the service sector
– Service sector 57.1%, industry 37.1%, agriculture 11.8% of GPD in 2012
• Consumption-driven economy - 69.4% of GDP is formed by private
consumption
– Fueled by overseas remittances amounting to $24.4 billion and the
Business Process Management industry $18.4 billion (2014)
– Other growth sectors are manufacturing and construction (7.5% growth in
2014), and real estate services and financial intermediation -> 6% growth
rate in the overall services sector in 2014
• Total exports $61.8 billion, imports $64.5 billion
Investment climate
• Investment grade ratings (Fitch, S&P, Moody’s, Japan, Korea)
• FDI $6.2 billion in 2014, six times higher than in 2010
• Government incentives
– Board of Investment - Investment Priority Plan
– Philippine Economic Zone Authority (PEZA) for export-oriented
activities
• Foreign ownership
– Foreigners can invest up to 100% equity in corporations,
partnerships and other entities in the Philippines, except in areas
included in the Foreign Investments Negative List (FINL)
Lithuania-Philippines
Bilateral Trade
Areas of opportunity
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Energy/Renewables & Environmental technologies
ICT & IT/BPM
Food/Agriculture
Infrastructure & Transport
Maritime
Tourism
Healthcare/Medical & Pharmaceuticals
Consumer Goods/Retail
Financial Services
Manufacturing
Mining
Automotive
Areas of opportunity
• Information Technology and Business Process Management
– Philippines is world no. 1 in voice services, no. 2 in non-voice services
– Metro Manila region world no. 2 outsourcing/offshoring destination after
Bangalore
– One of the fastest growing industries in the Philippines, CAGR 26% (2006-2013)
• Environment / Renewable Energy
– National Renewable Energy Program aims to triple the yearly production
capacity of renewable energy by 2030, currently 5030 MW. Program relies
heavily on private sector.
– Solid waste management systems being developed according to the
implemented act RA 9003. Aim to reach recycling ratio of 25 percent.
– Lots of untapped potential in the treatment of hazardous and medical waste.
Areas of opportunity
• Infrastructure
– Public infrastructure budget increased by 17,7% for 2014 (US$7,04bn).
– Construction industry the fastest growing in Asia on medium-term after
Myanmar. Value US$21bn (2014), year-on-year growth rate 47%
– Public-Private-Partnership projects
• Healthcare & Pharmaceuticals
– Department of Health operates with the biggest budget among
government departments. National health insurance act was signed in
July 2013 to insure every Filipino, currently covers ~83% of the population
– The revenue of pharmaceuticals industry is expected to double to US$8bn
by 2020
Doing business
in the Philippines
• Strengths
– Strong macroeconomic
fundamentals
– Educated, young, and
English-speaking labor force
– Improving governance
– Renaissance of
manufacturing
– Overseas remittances
– Strategic geographic location:
launching pad for AEC
Doing business
in the Philippines
• Strengths
– Strong macroeconomic
fundamentals
– Educated, young, and
English-speaking labor force
– Improving governance
– Renaissance of
manufacturing
– Overseas remittances
– Strategic geographic location:
launching pad for AEC
• Challenges
– Corruption
– Red tape and Bureaucracy
– High rate of poverty
– Inefficient infrastructures
– Low rates of investments to
GDP
– Low Foreign Direct
Investments
EU-Philippines Business Network
• Partnership of eight chambers of commerce operating in Manila
EPBN Services
• Advocacy and market access
– 14 industry-led sector committees & ad hoc support
• Business support
– Market studies, business matching, new market entry support,
business development
• Business missions
– Ministerial & private sector business delegations
• Government relations
– Embassies and Philippine government agencies
Questions & Answers
Contact information:
Joona Selin
EU Outreach & Business Support Manager
[email protected]