Economic relations between ASEAN (the Association of Southeast Asian Nations)
In the second half of the 20th century, the world was undergoing its major period of globalization and the integration of national economies. After the Second World War period, a number of regional intergovernmental organizations were established in the world. The ASEAN formation was one of them. The countries of Asia have a number of differences in political, economic and cultural terms. But all of them have united with the goal of mutually beneficial cooperation, first of all, in the monetary, financial, trade and military spheres.
The Association of Southeast Asian Nations (ASEAN) was formed on 8 August 1967 when the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand signed the ASEAN Declaration in Bangkok, Thailand. In the future, the composition of ASEAN has doubled.
ASEAN Free Trade Area:
The ASEAN Heads of State and Government decided to establish an ASEAN Free Trade Area or AFTA in 1992. It represents the most consolidated economic grouping of Asian countries. In 1992 Singapore hosts the 4th ASEAN Summit, which agrees to launch the ASEAN Free Trade Area. Since the AFTA formation by Indonesia, Malaysia, the Philippines, Singapore and Thailand, the organization’s membership has expanded to include Brunei, Vietnam (1996), Laos and Myanmar (1998), Cambodia (1999).
When trading inside of ASEAN, significant progress was made with respect to reducing customs duties. Import tariffs in six ASEAN countries — Brunei, Indonesia, Malaysia, Singapore, Thailand and the Philippines have already been reset to 99% of commodity items (100% in Singapore). At the same time, Malaysia maintains import duties on rice (20 per cent), tobacco products and substitutes (5%), alcohol products. In Indonesia-rice (25%), sugar (5–10%) and alcoholic beverages. In the Philippines-some types of meat products (5%), rice (35%) and sugar (5%).
5% of import duty in all these countries is maintained on fresh flowers, unroasted coffee and coconut pulp. Cambodia, Laos, Myanmar and Viet Nam have zeroed out tariff duties on about 90% of goods.
The integration strategy of the ASEAN countries in the long term is aimed at turning the region into a single socio-economic space based on three “pillars”: (1) ASEAN Political Security Community (APSC); (2) ASEAN Economic Community (AEC); and (3) ASEAN Socio-Cultural Community (ASCC).
With large abundant natural resources, SEA (Southeast Asia) has been able not only to fully meet the national needs for its products, but also to form significant export resources. The main agricultural crops in the region are rice, corn, sweet potatoes, yams, sugar cane, a variety of fruits and vegetables, tobacco, coffee, tea, spices. SEA is one of the world’s largest areas of developed plantation economy (natural rubber, oilseeds, jute, tobacco, etc.). Livestock sector is poorly developed.
ASEAN exports in 2017
SEA exports in 2017 amounted to 250.79 billion dollars and consisted of exports of Singapore (24.7%), Malaysia (23.2%), Thailand (22.81%), Indonesia (14.28%), Vietnam (6.75%), Philippines (4.38%) and others (4.51%).
ASEAN import in 2017
The import of Southeast Asia in 2017 amounted to 249.98 billion dollars and consisted of imports of Singapore (24.76%), Malaysia (16.88%), Thailand (14.88%), Indonesia (13.93%), Vietnam (12.04%), the Philippines (8.77%) and others (8.74%).
ASEAN export and import. Introduction
Vietnam is one of the few countries in Asia that has long tried to maintain the Communist farming model. This country continues to recover from a protracted war it faced from 1962 to 1975. Vietnam is an agricultural country with a backward economy. The export from Vietnam to the ASEAN countries in 2017 amounted to 16.94 billion US dollars. The main exporting countries from Vietnam are Malaysia ($ 4.47 billion), Thailand ($ 4.4 billion), Indonesia ($ 3.18 billion) and Singapore ($ 2.96 billion).
Vietnam main exports are: textiles, seafood, shoes, plastic products, as well as mobile devices and accessories.
Import from the ASEAN to Vietnam totaled $ 30.11 billion, the main importing countries of Vietnam — Singapore ($ 11.3 billion), Thailand ($ 9.34 billion), Malaysia ($ 5.72 billion) and Indonesia ($ 3,05 billion).
Vietnam mainly buys machinery and equipment, petroleum products, rubberized knitted fabric, crustaceans.
Indonesia is an agro-industrial country with the most developed mining, oil refining and agriculture. For export, rice, cassava and sweet potatoes are grown here. Considerable income in the national budget brings also the tourism. Despite the market nature of the Indonesian economy, the role of the state in it is quite large and significant. In particular, the state owns more than a hundred large enterprises. The government also regulates pricing in the country.
The Indonesian export to the ASEAN in 2017 amounted to 35.81 billion US dollars. The main exporters — Singapore ($ 13.3 billion), Malaysia ($ 6.97 billion), Thailand ($ 6.17 billion) and the Philippines ($ 4.87 billion).
Indonesia’s exports are based on palm oil, coal briquettes, petroleum products, rubber, copper ore, cars, coconut oil, precious metal scraps, rice, sweet potatoes.
The ASEAN imports to Indonesia in 2017 amounted to 34.81 billion US dollars, the main importing countries are Singapore ($ 15.1 billion), Thailand ($ 8.46 billion) and Malaysia ($ 7.17 billion).
Petroleum, machinery and equipment, machinery spare parts, electronics, wheat, unrefined sugar are the bulk of Indonesia’s import.
Malaysia is a country with a very flexible and dynamically developing economy. Part of the country’s success is due to the “Malaysian miracle”- Mahathir Mohamad, the former Prime Minister. Malaysia’s subsoil is rich in oil and gas resources, tin and other metals. Nevertheless, the main focus and concerns of country is on the tourism and electronics development.
Malaysian exports to ASEAN in 2017 amounted to 58.18 billion US dollars, the main Malaysian exporters — Singapore ($ 31.1 billion), Thailand ($ 11.20 billion), Indonesia ($ 7.17 billion) and Vietnam ($ 5.72 billion).
Malaysia mainly exports electronic equipment, oil and natural liquefied gas, chemicals, palm oil, wood and wood products, rubber, textiles.
ASEAN’s imports to Malaysia amounted to 42.20 billion US dollars. The main importing countries are Singapore ($ 18.8 billion), Thailand ($ 10.30 billion), Indonesia ($ 6.97 billion) and Vietnam ($ 4.47 billion).
The main share of imports accounted for machinery and equipment, electronics and accessories, petroleum products, spare parts for cars, gold.
Singapore is often hailed as one of the richest and successful countries in the world, largely due to the extremely favorable geographical position and effective management of funding. The most developed electronics and equipment manufacturing, services, shipbuilding and biotechnology, mechanical engineering, the production of chemicals and mineral fuels.
Singapore exports to the ASEAN in 2017 amounted to 60.37 billion US dollars, the main exporters from Singapore — Malaysia ($ 18.8 billion), Indonesia ($ 15.10 billion), Vietnam ($ 11.30 billion), Thailand ($ 6.90 billion) and the Philippines ($ 5.17 billion).
Singapore’s principal exports are electronic equipment, petroleum products, chemicals, gold.
ASEAN import to Singapore amounted to 61.89 billion US dollars, the main importing countries are Malaysia ($ 31.1 billion), Indonesia ($ 13.30 billion), Thailand ($ 8.35 billion) and Philippines ($ 4, 88 billion).
The bulk of imports accounted for machinery and equipment, electronics and accessories, oil products, jewelry.
Thailand being an ASEAN member since 1967, is an agrarian-industrial country with a developed economy and agriculture, light industry, electronics production. Huge revenue for the country brings tourism.
The Thailand export to the ASEAN countries in 2017 amounted to 57.2 billion US dollars. The main Thailand exporters are Malaysia ($ 10.3 billion), Vietnam ($ 9.34 billion), Indonesia ($ 8.46 billion), Singapore ($ 8.35 billion), Philippines ($ 6.76 billion) and Myanmar ($ 4.08 billion).
The main export items are computers and components, microcircuits, textiles, rice.
The ASEAN import to Thailand amounted to 37.20 billion US dollars, the main importing countries — Malaysia ($ 11.2 billion), Singapore ($ 6.90 billion), Indonesia ($ 6.17 billion) and Vietnam ($ 4, 40 billion), and Myanmar ($ 4.11 billion).
Thailand buys electronics, equipment and accessories, petroleum products, crude oil, spare parts for cars, gold.
The Philippines has been a member of ASEAN since the foundation of this international organization. It is an agrarian-industrial country with a fairly developed chemical, textile, pharmaceutical industry, as well as agriculture.
The Philippines exports to the ASEAN countries in 2017 amounted to 10.99 billion US dollars, the main exporters of the Philippines — Singapore ($ 4.88 billion), Thailand ($ 2.81 billion) and Malaysia ($ 1.66 billion).
The main export share of the Philippines is made up of integrated circuits, computers, semiconductor devices, insulated wires, electrical transformers, office machine parts, gold, bananas, coconut oil, telephones.
The ASEAN import to the Philippines amounted to 21.92 billion US dollars. The main Philippines importers are Thailand ($ 6.76 billion), Singapore ($ 5.17 billion) and Indonesia ($ 4.87 billion).
A significant part of the imports of the Philippines are petroleum products, cars and motorcycles, office parts of cars, crude oil, coal briquettes, packaged medicines, copper ore.
Brunei, the country is often called “Islamic Disneyland” for its wealth and prosperity. The reason is huge stock of oil and gas reserves. Thanks to their extraction and export, the state occupies one of the leading places in Asia in terms of the standard of living of its citizens. However, no other branches of the economy in Brunei are practically developing.
Brunei exports to the ASEAN countries in 2017 amounted to 0.896 billion US dollars, the main importing countries from Brunei — Thailand ($ 569 million) and Malaysia ($ 147 million). Crude oil, liquefied natural gas, oil products, and jewelry are exported.
ASEAN import to Brunei amounted to 1.423 billion US dollars. The leading importers are Singapore ($ 750 million) and Malaysia ($ 505 million).
A large share of Brunei’s imports is made up of machinery and equipment, agricultural raw materials, medicines, foodstuffs.
Laos, Cambodia and Myanmar are agrarian countries with fairly backward economies. A significant part of the population is engaged in agriculture (in Laos — up to 80%) with the almost complete lack of infrastructure.
Laos export to the ASEAN countries in 2017 amounted to 2.4 billion U.S. dollars. Key importers are Thailand ($ 1.84 billion) and Vietnam ($ 0.53 billion).
Laos exports wood products, clothing, electricity, coffee, tin.
ASEAN import to Laos amounted to us$ 4.58 billion, the main countries that import to Laos are Thailand (us$ 4.04 billion) and Vietnam (us $ 0.41 billion).
A significant import share of Laos are petroleum products, cars, gold and electronics.
Cambodia export to ASEAN countries in 2017 amounted to 2.75 billion us dollars, the main importers are Singapore ($ 1.33 billion) and Thailand ($ 1.01 billion).
Cambodia exports gold and jewelry, cassava, insulated wires, dextrin.
ASEAN import to Cambodia amounted to 7.05 billion US dollars. In Cambodia, primarily imported Thailand ($4.12 billion), Vietnam ($1.38 billion) and Singapore ($0.71 billion).
The country buys oil products, cement, gold, unrefined sugar, flavored water.
Myanmar export to ASEAN countries in 2017 amounted to 5.26 billion US dollars, the main importers — Thailand ($ 4.11 billion) and Singapore ($ 0.69 billion).
Virtually all of Myanmar’s exports are oil gas (89% of total exports).
ASEAN import to Myanmar amounted to 8.80 billion U.S. dollars. Thailand ($ 4.08 billion), Singapore ($ 2.37 billion), Indonesia ($ 1.01 billion) and Malaysia ($ 0.97 billion) supply goods to Myanmar.
Unrefined sugar, flavored water, petroleum products, cement and electronics are the large part of imports.
Today, ASEAN countries are a powerful economic and political tool, uniting ten independent countries in Southeast Asia. The effective cooperation of these countries has contributed to the solution of a large number of controversial issues in a variety of areas.
In the economic sphere the ASEAN countries pursue a policy of deepening trade liberalization. At the same time, ASEAN is moving towards trade liberalization with leading non-regional partners. Free trade agreements have been signed with China, Japan, the Republic of Korea, India, as well as with Australia and New Zealand. By 2024, it is planned to create an ASEAN free trade zone plus China, the Republic of Korea and Japan. ASEAN is also one of the backbone elements of the emerging security and cooperation system in the Asia-Pacific region.
