The 6th Dialogue between

Secretary General of ASEAN

and Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA)

July 12, 2013

Hanoi,Vietnam

2

ASEAN foreign direct investments net inflow from extra-ASEAN(2011)

(Source) Prepared by JETRO based data from ASEAN Secretariat

Unit:

Upper: million US$

Lower: share(%)

Note 1: FJCCIA stands for the Federation of Japanese Chambers of Commerce and Industry in ASEAN. 2: Total numbers include regional chambers(e.g,Cebu in the Philippines, Danan in Vietnam, East Java, Bandon and

Bali in Indonesia). The member companies of FJCCIA was 4,447 In 2010., 4944 in 2011 , 5,034 in 2012 . 3: Approved base except Indonesia(Realization base) and Singapore(Commitment base)

The number of member

companies of FJCCIA

Country June

2013

Brunei 3

Cambodia 144

Indonesia 631

Lao PDR 56

Malaysia 568

Myanmar 107

Philippines 674

Singapore 772

Thailand 1,479

Viet Nam 1,213

Total 5,647

The outstanding position of Japanese investment in each ASEAN members by ranking in 2012(*3)

Country Rank Share

Thailand 1 63.5%

Vietnam 1 51.0%

Malaysia 1 13.4%

Philippines 2 23.9%

Singapore 2 6.0%

Cambodia 3 18.5%

Indonesia 3 10.0%

(Source) Prepared by JETRO based data from JCC in ASEAN countries.

Japan is the principal investor in ASEAN(2011), in terms of net inflow of FDI from extra-ASEAN. Increasing number of FJCCIA members obviously shows Japanese companies’ strong commitments in ASEAN.

EU

18,241 21%

Japan

15,015 17%

China 6,034

7% USA

5,783 6%

Hong Kong 4,096 4.7% Cayman

2,425 2.8%

Korea

2,138 2.4%

UAE 1,728 2.0%

Taiwan 1,719 2.0%

Others 30,662 34.9% ASEAN FDI

(net inflow)

From extra-ASEAN

US$ 87,840 million

in 2011

3

Japanese Government has increased ODA for ASEAN in critical situations after economic crises in 1997 and 2008, respectively. In addition to government level cooperation, FDIs in ASEAN have been steadily increasing (exceeded those in China in 2010 and 2011)

ASEAN

ODA from

Japan

(Unit: million US dollars)

Japanese

FDI

to ASEAN

and China

Asian currency

crisis

bursting of the IT bubble

Lehman's fall

ASEAN CHINA

(Sources) Prepared by JETRO from Ministry of Finance Balance of Payments Statistics , OECD databese

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11

0

5,000

10,000

15,000

20,000

97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12

4

ASEAN Import (2012) ASEAN Export (2012)

(Source) Survey of Japanese-Affiliated Firms in Asia and Oceania（2012/JETRO）

(N=948)

(N=1,167)

Average ratio of raw

materials and parts

procurement sources

Export destinations

Japanese manufacturers in ASEAN have steadily been increasing the local procurement ratio either in each country or from other ASEAN countries. Finished or semi-finished products are exported to overseas market, including Japan, China and Europe.

Japan 35.0

ASAEN 8.3

Local 43.5

China

5.4

Taiwan/Korea 2.8

Others 5.0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1

Japan 39.6

ASEAN 32.4

China

5.7

Europe 3.5

USA 3.9

2.5 Others

12.3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Japan ASEAN China Europe USA India Others

Japan

129,283 10.3%

Intra-ASEA

N

322,902 25.7% Others

802,974

64.0%

Japan

129,405 10.5%

Intra-ASEA

N

322,902 26.2%

Others 780,798

63.3%

Unit:

Upper:: million US$ Lower: share(%)

(Note) Data are adjusted by IMF, might be different

from the statistics of each countries.

(Source) IMF “Direction of Trade Statistics”, May,2013

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Customs Procedures

Industrial HRD for Global

Supply Network

Mekong-Japan Industry

Government Dialogue

Standards, Conformance and

Labeling

ASEAN+1 FTAs Utilization of

FTAs

Protection

of IPRs

New Subjects

6

Customs

Procedures

Abolishment of FOB value in the CO Form D, ASEAN-Korea, ASEAN-

Japan and ASEAN-Australia and New Zealand in instances when WO5, CTC and Process Rules are used

(Decision by 25th AFTA Council Meeting)

Customs

Procedures

Steady progress on domestic process in each ASEAN Member

State for full implementation of The ASEAN Harmonized Electrical, Electronics Equipment Regulatory Regime (AHEEERR)

Mekong-Japan

Industry and

Government

Dialogue

New Subjects

Utilizing FJCCIA’s suggested list on Information Technology

Agreement (ITA) to WTO/ITA negotiation through forwarding information to their respective relevant agencies for the negotiations

(Decision by Coordinating Committee on ATIGA (CCA), on 2 July)

Concrete actions of Mekong countries to conduct Single Stop

Inspection at major land border points for enhancing connectivity (Various actions including the decision by Second Vice Foreign Ministers’

Meeting on East-West Economic Corridor (EWEC) Development on 16 May)

-FOB: Free on Board

- CO: Certificate of Origin

- WO: wholly obtained or produced

- CTC: Change in Tariff Classification

- AFTA: ASEAN Free Trade Area

Copyright © 2010 JETRO. All rights reserved. Reproduction without permission is prohibited. 7

FJCCIA will submit new requests to ASEAN Secretariat in 2014. The requests will be consisted from a) remaining issues which need further continuous efforts and b) new issues.

Early elimination of Non-Tariff Barriers/Measures (NTBs/NTMs) which would recognized as

bottlenecks for improving business competitiveness Coordination of liberalization level and scope in AMSs, as well as liberalization of all kinds of

manufacturing support services under “ASEAN Framework Agreement on Trade in Services (AFAS)”

Introduction of “ASEAN Business Travel Card” scheme by referring to ongoing “APEC Business Travel Card” system

Coordination of taxation and social security system to avoid double taxation and duplicated social security payment such as pensions in each AMS toward freer movement of ASEAN business persons

Steady negotiation on Regional Comprehensive Economic Partnership (RCEP) toward development of more business-friendly framework

Introduction of “Advance ruling” on import valuation in all AMSs