2 About Author Positions held: Academic works: Publication: Education: Executive Advisor, McKansys (Thailand)Partner, Deloitte (Thailand and Southeast Asia)Country Director, Frost & Sullivan (Thailand)Delivery Head, Wipro TechnologiesSenior Consultant, True CorporationProduct Manager, British TelecomAcademic works:Guest Lecturer, Mahidol University College of Management (International MBA)P/T Lecturer, Assumption Univeristy, Faculty of Science and TechnologyPublication:“Development of Telecommunications Infrastructure and Policy in Thailand: A Case Study in Political Economic View of Telecommunications” (2010, Lambert Publishing House)“Strategy Cookbook” (2013, McKansys ‘s Copyrighted Handbook)Education:Master’s and Ph.D., majoring in Telecommunications , Temple University (USA)
3 AgendaUnderstanding AECOpportunities in ASEAN MarketAEC Readiness Preparation
4 What will happen after AEC? No custom barriersIntegration of logistics and transportation systemsEstablishing ASEAN Trade Repositary(แหล่งเก็บรักษาข้อมูลการค้าอาเซียน)0% import & export taxASEAN will become a single market and production hubIntegration of capital marketsRegional hub of production and sourcingFree movement of labors in 8 MRA categoriesASEAN investors are free to invest in service sector (70%)
6 Country Highlights Lao Long-term risk from 1) corruption 2) relying on Hydropower 3) poverty and ethnic gapsAgriculture accounts for 27.98% of GDP and employing 85% of the populationBesides trading and consumer business as the second largest GDP contributor, garment is heavily promotedVietnamStart 2013, inflation stabilized, real GDP growth recognizedBiggest sectors are food and beverage (many export to Cambodia and Lao) and also textiles (2.2 illion workers)High growth in ICT & electronics, followed by automotiveCountry HighlightsPhillipinesElectronics sector used to dominate ($21 billion value) but in 2016 BPO is expected to exceed at $26 billion.World’s largest BPO centerBiggest export of education professionalsMyanmarLowest BMI’s Business Envionroment Rating in ASEAN, second lowest in Asia after N. KoreaProne to economic mismanagement due to leapfrogging (like Vietnam). No proper protocol to control is in place.Basic infrastructure, i.e. ICT and utilities are still limited and not stable.Gas and mineral are highest exported goods (56% of total)Initiated excitement from awarding offshore exploration licenses in oil & gas and building 3 major seaports with support from Japan, China, ThailandBig benefit to tourism sector, from 1million tourists in 2012 to 3 million in 2015.CambodiaThe next Vietnam, driven by agri, 38% GDPBiggest manufacturing is garment, 16% GDP and 45% of manufacturing workersConstruction sector growth at 30% per annumTourists rise to hit 5 million in 2015, almost 20% growth for the past 5 years.High short-term political risk, until CPP reformBig income gap, need strong population controlIndonesiaManufacturing sector has been the largest contributor, followed by argriculture and consumer businessesIn 2013, Indonesia hits the highest growth record in the tourism industry. It contributed 8.4 percent to the economy.MalaysiaElectronics and electrical - more than half of industrial exportsBiggest palm oil exporter, second largest producer in ASEAN (about 6% of GDP)Singapore72% of GDP in service sector, i.e. financial, ICTRegional hub of MNCs, leading AEC initiativesRemaining industrial sector is high-tech
7 CLMV trade-off between politicalrisks and economic growth CLMV is emerged as major “new export destination” for Thailand.Growth especially noted in Myanmar, Lao, and Cambodia (Average 7-7.5% GDP growth accordingly).Consumer goods, especially commodity products (rubber, refined oil, chemicals and materials) are increasingly exported with support from removal of tariff from AEC and more development of transport links.
8 ASEAN Growth Accelerators Strong growth in consumption in almost all sectors, especially in emerging SEA countries, i.e. Indonesia and Vietnam.Promising opportunity in consumer business and imported goodsLicensing and more investments in infrastructure driving economic growthForeign InvestmentRise of Middle ClassYoung WorkersUrbanizationMore Imported GoodsASEAN GrowthAccelerators