ASEAN: Regional Trends in Economic Integration, Export, Competitiveness, and Inbound Investment for Selected Industries

This report describes trends in regional integration, export competitiveness, and inbound investment for six industries within the Association of Southeast Asian Nations (ASEAN): computer components, cotton woven apparel, hardwood plywood and flooring, healthcare services, motor vehicle parts, and palm oil. The six profiled industries are a subset of 12 priority sectors that ASEAN members identified in 2004 in order to promote regional integration. The members created a regional “Roadmap for Integration” (Roadmap) for each priority sector, and while these Roadmaps have promoted tariff reductions and streamlined certain administrative procedures, their success in promoting regional integration has been mixed. In general, economic factors and national government policies have had more influence than the Roadmaps over regional industrial structures. ASEAN members tend to view each other as competitors for inbound investment and jobs, and the members have no legally binding means to enforce compliance with the objectives of the Roadmaps.