What is ASEAN?

Established in 1967, ASEAN (Association of Southeast Asia Nations) is the political and economic organisation of 10 Southeast Asian countries whose aim is to accelerate economic growth, social progress and cultural development in the region by promoting cooperation among its members and fostering regional peace and stability.

There is a great diversity among its members in relation to geographical dimension, size and origin of the population, cultures, languages, political regimes and religions.

ASEAN economy grew by 5.62% in 2019, has been steadily growing  at an average pace of 7.53% since 2009. Regarding its economic development, the group is split into 2 blocks:

     •  ASEAN 6, comprising the more developed countries and
     •  CLMV, comprising the emerging economies.

Nevertheless both blocks share rapid economic and social growth.

Thanks to its strategic geographical position, ASEAN is a key hub for global trade, with over $3.55 trillion in global trade transiting through the ASEAN region each year, which makes this market an optimum place for trade and mobility of capital, goods and labour.

It has a great variety of natural resources like petroleum, natural gas, timber, tin, nickel, copper, iron, bauxite as well as consolidated industries like manufacturing, agriculture and tourism.

6 features of ASEAN 

ECONOMY OF ASEAN 

AEC

The ASEAN Economic Community (AEC) was created in 2015 to establish ASEAN as a single market and production base with the aim of making ASEAN more dynamic and competitive. The AEC comprises the free flow of 5 core elements:

1.  Goods 
2.  Skilled labour 
3.  Services 
4.  Investment 
5.  Capital  

In addition, the AEC includes two important component, namely, priority integration sectors, and food, agriculture and forestry.

The strategic plan, the AEC Blueprint 2025, for the construction of the economic community aims to further deepen the integration process by adopting new reform initiatives and cooperation, highlighting 5 major objectives : 

1. A highly integrated and cohesive economy
2. A competitive, innovative, and dynamic ASEAN
3. Enhanced connectivity and sectoral cooperation
4. A resilient, inclusive, people-oriented and people-centred ASEAN
5. A global ASEAN

In the next decade, ASEAN will also provide a new emphasis on the development and promotion of micro, small and medium enterprises (MSMEs) and will embrace the evolving digital technology as leverage to enhance trade and investments, provide an e-based business platform, promote good governance, and facilitate the use of green technology.

Unlike the EU, the AEC does not get involved in the internal affairs of its members, but focuses on promoting their rapid and sustained economic growth and modernisation.

Snapshot of ASEAN Economy

Opportunities

The large market potential, the strategic geopolitical position between East and West (US$5.3T of world trade passes through the region), low tariff rates, trade agreements and the current trade tensions between China and the USA which are moving trade and investment to this region, create large and diverse opportunities nearly in every area of ASEAN. Spanish companies must take advantage of this and start investing in ASEAN country members.

We group opportunities in 4 key areas: