8/8/24
ASEAN Community and Vietnam’s
participation in ASEAN
Dam Thi Phuong Thao
Faculty of International Business and Economics
UEB-VNU
Preview
1. ASEAN general information
2. ASEAN community
3. ASEAN economic community
4. ASEAN free trade area (AFTA)
5. Vietnam’s participation
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GENERAL INFORMATION
•The Association of Southeast Asian Nations, or
ASEAN, was established on 8 August 1967 in Bangkok,
Thailand, with the signing of the ASEAN Declaration
(Bangkok Declaration) by the Founding Fathers of
ASEAN, namely Indonesia, Malaysia, Philippines,
Singapore and Thailand.
•Viet Nam on 28 July 1995, which is 7th member of
ASEAN
• [Link]
Members
10 Member States
• Brunei Darussalam • Myanmar
(7 January 1984)
(23 July 1997)
• Cambodia • Philippines
(30 April 1999)
(8 August 1967)
• Indonesia • Singapore
(8 August 1967)
(8 August 1967)
• Lao PDR • Thailand
(23 July 1997)
(8 August 1967)
• Malaysia • Viet Nam
(8 August 1967)
(28 July 1995)
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ASEAN Aims and Purposes
(Bangkok Declaration 1967)
• To accelerate the economic growth, social progress and
cultural development in the region through joint endeavours.
• To promote regional peace and stability through abiding
respect for justice and the rule of law.
The ASEAN Journey to Community Building
2015
2007 Dec 31st
Cebu Declaration
Realization of the
2003 ASEAN
Bali Concord II Community
1997
ASEAN Vision 2020
1967
Bangkok
Declaration
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ASEAN Community
ASEAN:
A people-oriented community
ASEAN ASEAN ASEAN
Political-Security Economic Socio-Cultural
Community Community Community
(APSC) (AEC) (ASCC)
Narrowing the Development Gap (NDG) 7
Pillar 1
APSC Vision 2025
“Our ASEAN Political-Security Community by 2025 shall be a
united, inclusive and resilient community. Our peoples shall live in a
safe, harmonious and secure environment, embrace the values of
tolerance and moderation as well as uphold ASEAN fundamental
principles, shared values and norms. ASEAN shall remain cohesive,
responsive and relevant in addressing challenges to regional peace and
security as well as play a central role in shaping the evolving regional
architecture, while deepening our engagement with external parties and
contributing collectively to global peace, security and stability..”
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Pillar 1
APSC Blueprint 2025
Rules-based, people- A resilient Community in
oriented, people-centred a peaceful, secure and
Community stable region
ASEAN Centrality in a Strengthened ASEAN
dynamic and outward- institutional capacity and
looking region presence
Pillar 1: APSC
• ASEAN Intergovernmental Commission on Human Rights
(AICHR)
• ASEAN Human Rights Declaration
• Southeast Asia Nuclear Weapon Free Zone (SEANWFZ)
• Preventive Diplomacy
• ASEANTOM
• ASEAN-NARCO (in Bangkok)
• ASEAN Center of Military Medicine (in Bangkok)
• Non-Traditional Security Threats
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Pillar 3
ASCC Vision 2025
“Our ASEAN Socio-Cultural Community
by 2025 shall be one that engages and benefits
the peoples, and is inclusive, sustainable,
resilient, and dynamic.”
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Pillar 3
ASCC Blueprint 2025
Building
Human Environmental
ASEAN
Development Sustainability
Identity
Social Narrowing the
Social Justice
Welfare & Development
& Rights
Protection Gap
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ASEAN Smart Cities
•At the 32nd ASEAN Summit on 28 April 2018, the
ASEAN Leaders established the ASEAN Smart Cities
Network (ASCN).
•The ASCN is a collaborative platform where cities from
the ten ASEAN Members work towards the common goal
of smart and sustainable urban development
•The ASCN aims to facilitate cooperation on smart cities
development, catalyse bankable projects with the private
sector, and secure funding and support from ASEAN’s
external partners.
•To this end, 33 partnerships have been established thus far.
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Pillar 2: ASEAN Economic Community (AEC)
• The ASEAN leaders made a declaration on the
establishment of the ASEAN Economic Community
(AEC) on 31/12/2015
• The objective of the AEC is to promote economic
development in an equitable manner, to establish
economic zone with higher competitiveness, facilitating
for the full integration of ASEAN into the global
economy.
• [Link]
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Pillar 2: AEC
AEC Vision 2025
“ASEAN Economic Community (AEC) by 2025
shall be a highly integrated and cohesive economy, a
competitive, innovative and dynamic ASEAN, a resilient,
inclusive and people-oriented, people-centred ASEAN,
enhanced connectivity and sectoral cooperation, and a
global ASEAN.”
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Pillar 2
AEC Blueprint 2025
Enhanced
Highly integrated Competitive,
connectivity and
and cohesive innovative and
sectoral
economy dynamic ASEAN
cooperation
Resilient, inclusive,
people-oriented and
Global ASEAN
people-centred
ASEAN
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If ASEAN were a single country, it would already be the seventh-largest
economy in the world and the third largest economy in Asia with a combined
GDP of $2.6 trillion in 2014. It is projected to rank as the fourth-largest
economy by 2050.
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Benefits of engaging with
ASEAN Community
• Opportunities from the 3rd largest consumer market in the
world (measured by population).
• Opportunities from a population of 622 million, 53% of
which are below 30 years old.
• Opportunities from a highly connected region, conducive to
trade and investment.
• Opportunities from a vibrant economy (GDP growth at 4.9%
in 2015 and 5.3% in 2016).
• Opportunities from rich cultural diversity.
• Regional partner in the promotion of peace and security,
SDGs, and in addressing transnational threats and challenges.
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ASEAN FREE TRADE AREA
(AFTA)
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The ASEAN Free Trade Area (AFTA)
• The AFTA is a trade bloc agreement by the Association
of Southeast Asian Nations supporting local trade and
manufacturing in all ASEAN countries, and facilitating
economic integration with regional and international
allies
• The AFTA agreement was signed on 28 January 1992
in Singapore.
• When the AFTA agreement was originally signed,
ASEAN had six members, namely, Brunei, Indonesia,
Malaysia, Philippines, Singapore and Thailand
• AFTA now comprises the ten countries of ASEAN
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The ASEAN Free Trade Area (AFTA)
• It stands as one of the largest and most important FTA
in the world, and together with its network of dialogue
partners, drove some of the world's largest multilateral
forums and blocs, including Asia-Pacific Economic
Cooperation, East Asia Summit and Regional
Comprehensive Economic Partnership
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The ASEAN Free Trade Area (AFTA)
The primary goals of AFTA seek to:
• Increase ASEAN's competitive edge as a production
base in the world market through the elimination,
within ASEAN, of tariffs and non-tariff barriers; and
• Attract more foreign direct investment to ASEAN.
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The Common Effective Preferential Tariff
(CEPT) scheme
• AFTA does not apply a common external tariff on
imported goods. Each ASEAN member may impose
tariffs on goods entering from outside ASEAN based on
its national schedules.
• However, for goods originating within ASEAN, ASEAN
members are to apply a tariff rate of 0-5%
• The more recent members of Cambodia, Laos,
Myanmar and Vietnam were given additional time to
implement the reduced tariff rates.
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The Common Effective Preferential Tariff (CEPT)
scheme
ASEAN members have the option of excluding products from
the CEPT in three cases:
• Temporary exclusions (products for which tariffs will
ultimately be lowered to 0-5 %, but which are being
protected temporarily by a delay in tariff reductions)
• Sensitive agricultural products (such as rice, ASEAN
members have until 2010 to reduce the tariff levels to 0-5 %)
• General exceptions (protection of national security, public
morals, the protection of human, animal or plant life and
health, and protection of articles of artistic, historic, or
archaeological value)
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ASEAN Trade in Goods Agreement (ATIGA)
1. The ASEAN Trade in Goods Agreement (ATIGA) was
signed in February 2009 and subsequently entered-into-
force on 17 May 2010. The ATIGA replaced the earlier
Agreement on Common Effective Preferential Tariff of
the ASEAN Free Trade Area (CEPT-AFTA) scheme
signed in 1992
2. [Link]
-
up%20on%20ASEAN%20Trade%20in%20Goods%20A
greement%20(ATIGA).pdf
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Vietnam’s participation
• Since joining ASEAN in 1995, Viet Nam has actively committed to
CEPT/AFTA terms and conditions – gradually removing tariffs and
jointly signed multilateral FTAs between ASEAN and other
countries (Japan, Australia – New Zealand, Korea, etc.)
• Viet Nam has committed to gradually remove tariffs on 10,455
tariff lines to 0% for almost all products in 2015 and to 7% in 2018
for the rest of the products
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Vietnam’s participation
• AEC has various opportunities for Viet Nam including
(1) regional stability support for Viet Nam’s socio-economic
development;
(2) AEC helps promote Viet Nam’s further integration into
the global economy;
(3) AEC improves the bargaining power of Viet Nam with
other major trade and investment partners.
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Summary
•The Association of Southeast Asian Nations, or
ASEAN, was established on 8 August 1967 in Bangkok,
Thailand, with the signing of the ASEAN Declaration
(Bangkok Declaration) by the Founding Fathers of
ASEAN, namely Indonesia, Malaysia, Philippines,
Singapore and Thailand.
• 10 members including Brunei Darussalam, Cambodia,
Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,
Singapore, Thailand and Vietnam
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Summary
• ASEAN Community building: ASEAN Political-
Security Community (APSC), ASEAN Economic
Community (AEC) and (ASEAN Socio-Cultural
Community (ASCC)
• ASEAN Free Trade Area
• Vietnam’s Participation in AEC
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