US firms doubt AEC single market goal

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Two leading American business groups Tuesday said US firms operating in Asean countries are sceptical the regional bloc can meet a 2015 deadline to establish a single market.

The 10-member Association of Southeast Asian Nations (Asean) has set 2015 as the target for creating a single regional economic market known as the Asean Economic Community (AEC).

In a survey of 475 senior US business executives from the region – jointly conducted by the American Chamber of Commerce in Singapore and the US Chamber of Commerce – 52% said they “do not think that the AEC’s goals will be realised by 2015”.

Of those who doubt Asean will reach its deadline, nearly 60% “think that Asean will not reach AEC’s goals until 2020 or later”.

Only 23% of all executives questioned believe that Asean will meet its 2015 goal, the poll showed.

Despite their scepticism, the survey showed that US companies are optimistic about overall business prospects in the region.

US firms said their level of trade and investment in Asean rose over the past two years and expect this figure to climb over the next five years.

Indonesia was named the most attractive country for new business expansion, followed by Vietnam, Thailand and Myanmar.

Meanwhile the Philippines showed the biggest improvement in its business environment between 2008 and 2013, the survey said.

Asean, a region of 600 million people, wants to establish a common market and manufacturing base so that it can better compete as a group with giant neighbours such as China and India in terms of trade and investments.

While it has made strides in bringing down tariff barriers to trade in goods, services and investments, analysts have said the problem of creating a single market lies in removing non-tariff hurdles.

 

 

 

Source : Bangkok Post | August 20, 2013

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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