Geo-Political and Economic Organization of Asean

Topics: ASEAN, Southeast Asia, Charisma Pages: 9 (3087 words) Published: January 13, 2013
The Association of Southeast Asian Nations is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, and cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully. ASEAN has emphasized regional cooperation in the “three pillars”, which are security, sociocultural integration, and economic integration. The regional grouping has made the most progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. The implementation of AEC is able to boost economic returns of countries in ASEAN due to cooperative and collaborative as a group could have generated a larger overall pool of benefits to be distributed among than countries than each will ultimately achieve by working on its own. But nevertheless in my opinion, Thailand will be of great concerns to many businesses in the region when AEC is established. Thailand possess in an advantageous geographical position which is located at the strategic center position in ASEAN, foreign companies be obliged to set up a solid foundation for the base material storage and product distribution to export their products to the countries in ASEAN if they are intend to establish market in ASEAN. Other than that, open economy policy of Thailand is closely integrated in the AEC blueprint. Thus it can be seen, Thailand’s markets will be benefit most among the countries in ASEAN when it come into effect in 2015.

According to a news report on Thailand newspaper World Journal, also known as Chinese Daily News, a sense of urgency is palpable in enterprises all type and in virtually every industry in Thailand since AEC will be organize soon. A number of listed companies adjusting corporate business strategies and formulating an aggressiveness marketing program are being stepped up without cease in order to meet the new challenges and opportunities that will be occur after two or three years. Managing director of TICON (Ticon Industrial Connection Public Company Limited), Mr. Virapan Pulges indicated that TICON had already the corporate strategies to cope with the regional economic integration by 2015, focus on the greatly increasing future demand of distribution center and warehouses facilities in Thailand. The Chief Executive Officer of CMO (Creative Management Organization), Sermkhun Kunawong revealed that convention and exhibition industries will be enormously benefit from the establish of AEC because the convention and exhibition industries in Thailand are occupied leading level among ASEAN countries. CMO planned to gain further insight into related convention and exhibition industries regulation of other countries in Asian in order to seek business opportunities and establish close contact with logistic industries in Asian countries. Chairman of the board of DRT (Diamond Roofing Tiles Public Company Limited), Prakit Prathipasen mentioned that his company always maintains their products export to Vietnam and Cambodia, but they will expand their export markets to Malaysia and Indonesia from now on, they planned to set up a warehousing distribution center at Changwat Surat Thani, Thailand to aiming at above markets. The presidents of MFEC (MFEC Public Company Limited), Siriwat Vongjarukorn stated that Information and Technology industries will benefit from establish of AEC. The implementation of open and liberal investment policies and actively...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Political Economics Essay
  • Essay on Economics- Asean
  • Effect of Asean Economic Integration Essay
  • Asean Essay
  • Political Science and Economic Aspects​ Essay
  • Supra-National Organizations: the Case of Asean Essay
  • Asean Research Paper
  • Organizations Around the World: ASEAN Essay

Become a StudyMode Member

Sign Up - It's Free