The 6th Dialogue between
Secretary General of ASEAN
and Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA)
July 12, 2013
Hanoi,Vietnam
2
ASEAN foreign direct investments net inflow from extra-ASEAN(2011)
(Source) Prepared by JETRO based data from ASEAN Secretariat
Unit:
Upper: million US$
Lower: share(%)
Note 1: FJCCIA stands for the Federation of Japanese Chambers of Commerce and Industry in ASEAN. 2: Total numbers include regional chambers(e.g,Cebu in the Philippines, Danan in Vietnam, East Java, Bandon and
Bali in Indonesia). The member companies of FJCCIA was 4,447 In 2010., 4944 in 2011 , 5,034 in 2012 . 3: Approved base except Indonesia(Realization base) and Singapore(Commitment base)
The number of member
companies of FJCCIA
Country June
2013
Brunei 3
Cambodia 144
Indonesia 631
Lao PDR 56
Malaysia 568
Myanmar 107
Philippines 674
Singapore 772
Thailand 1,479
Viet Nam 1,213
Total 5,647
The outstanding position of Japanese investment in each ASEAN members by ranking in 2012(*3)
Country Rank Share
Thailand 1 63.5%
Vietnam 1 51.0%
Malaysia 1 13.4%
Philippines 2 23.9%
Singapore 2 6.0%
Cambodia 3 18.5%
Indonesia 3 10.0%
(Source) Prepared by JETRO based data from JCC in ASEAN countries.
Japan is the principal investor in ASEAN(2011), in terms of net inflow of FDI from extra-ASEAN. Increasing number of FJCCIA members obviously shows Japanese companies’ strong commitments in ASEAN.
EU
18,241 21%
Japan
15,015 17%
China 6,034
7% USA
5,783 6%
Hong Kong 4,096 4.7% Cayman
2,425 2.8%
Korea
2,138 2.4%
UAE 1,728 2.0%
Taiwan 1,719 2.0%
Others 30,662 34.9% ASEAN FDI
(net inflow)
From extra-ASEAN
US$ 87,840 million
in 2011
3
Japanese Government has increased ODA for ASEAN in critical situations after economic crises in 1997 and 2008, respectively. In addition to government level cooperation, FDIs in ASEAN have been steadily increasing (exceeded those in China in 2010 and 2011)
ASEAN
ODA from
Japan
(Unit: million US dollars)
Japanese
FDI
to ASEAN
and China
Asian currency
crisis
bursting of the IT bubble
Lehman's fall
ASEAN CHINA
(Sources) Prepared by JETRO from Ministry of Finance Balance of Payments Statistics , OECD databese
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11
0
5,000
10,000
15,000
20,000
97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12
4
ASEAN Import (2012) ASEAN Export (2012)
(Source) Survey of Japanese-Affiliated Firms in Asia and Oceania(2012/JETRO)
(N=948)
(N=1,167)
Average ratio of raw
materials and parts
procurement sources
Export destinations
Japanese manufacturers in ASEAN have steadily been increasing the local procurement ratio either in each country or from other ASEAN countries. Finished or semi-finished products are exported to overseas market, including Japan, China and Europe.
Japan 35.0
ASAEN 8.3
Local 43.5
China
5.4
Taiwan/Korea 2.8
Others 5.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1
Japan 39.6
ASEAN 32.4
China
5.7
Europe 3.5
USA 3.9
2.5 Others
12.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Japan ASEAN China Europe USA India Others
Japan
129,283 10.3%
Intra-ASEA
N
322,902 25.7% Others
802,974
64.0%
Japan
129,405 10.5%
Intra-ASEA
N
322,902 26.2%
Others 780,798
63.3%
Unit:
Upper:: million US$ Lower: share(%)
(Note) Data are adjusted by IMF, might be different
from the statistics of each countries.
(Source) IMF “Direction of Trade Statistics”, May,2013
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Customs Procedures
Industrial HRD for Global
Supply Network
Mekong-Japan Industry
Government Dialogue
Standards, Conformance and
Labeling
ASEAN+1 FTAs Utilization of
FTAs
Protection
of IPRs
New Subjects
6
Customs
Procedures
Abolishment of FOB value in the CO Form D, ASEAN-Korea, ASEAN-
Japan and ASEAN-Australia and New Zealand in instances when WO5, CTC and Process Rules are used
(Decision by 25th AFTA Council Meeting)
Customs
Procedures
Steady progress on domestic process in each ASEAN Member
State for full implementation of The ASEAN Harmonized Electrical, Electronics Equipment Regulatory Regime (AHEEERR)
Mekong-Japan
Industry and
Government
Dialogue
New Subjects
Utilizing FJCCIA’s suggested list on Information Technology
Agreement (ITA) to WTO/ITA negotiation through forwarding information to their respective relevant agencies for the negotiations
(Decision by Coordinating Committee on ATIGA (CCA), on 2 July)
Concrete actions of Mekong countries to conduct Single Stop
Inspection at major land border points for enhancing connectivity (Various actions including the decision by Second Vice Foreign Ministers’
Meeting on East-West Economic Corridor (EWEC) Development on 16 May)
-FOB: Free on Board
- CO: Certificate of Origin
- WO: wholly obtained or produced
- CTC: Change in Tariff Classification
- AFTA: ASEAN Free Trade Area
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FJCCIA will submit new requests to ASEAN Secretariat in 2014. The requests will be consisted from a) remaining issues which need further continuous efforts and b) new issues.
Early elimination of Non-Tariff Barriers/Measures (NTBs/NTMs) which would recognized as
bottlenecks for improving business competitiveness Coordination of liberalization level and scope in AMSs, as well as liberalization of all kinds of
manufacturing support services under “ASEAN Framework Agreement on Trade in Services (AFAS)”
Introduction of “ASEAN Business Travel Card” scheme by referring to ongoing “APEC Business Travel Card” system
Coordination of taxation and social security system to avoid double taxation and duplicated social security payment such as pensions in each AMS toward freer movement of ASEAN business persons
Steady negotiation on Regional Comprehensive Economic Partnership (RCEP) toward development of more business-friendly framework
Introduction of “Advance ruling” on import valuation in all AMSs