International Marketing

International Marketing

ACKNOWLEDGEMENT
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International Marketing

The original ASEAN logo presented five brown sheaves of rice stalks, one for each founding member. Beneath the sheaves is the legend "ASEAN" in blue. These are set on a field of yellow encircled by a blue border. Brown stands for strength and stability, yellow for prosperity and blue for the spirit of cordiality in which ASEAN affairs are conducted. When ASEAN celebrated its 30th Anniversary in 1997, the sheaves on the logo had increased to ten representing all ten countries of Southeast Asia and reflecting the colors of the flags of all of them. In a very real sense, ASEAN and Southeast Asia would then be one and the same, just as the Founding Fathers had envisioned.

INTRODUCTION

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International Marketing On 8 August 1967, five leaders - the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand - sat down together in the main hall of the Department of Foreign Affairs building in Bangkok, Thailand and signed a document. By virtue of that document, the Association of Southeast Asian Nations (ASEAN) was born. The five Foreign Ministers who signed it - Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand - would subsequently be hailed as the Founding Fathers of probably the most successful inter-governmental organization in the developing world today. And the document that they signed would be known as the ASEAN Declaration. It was a short, simply-worded document containing just five articles. It declared the establishment of an Association for Regional Cooperation among the Countries of Southeast Asia to be known as the Association of Southeast Asian Nations (ASEAN) and spelled out the aims and purposes of that Association. These aims and purposes were about cooperation in the economic, social, cultural, technical, educational and other fields, and in the promotion of regional peace and stability through abiding respect for justice and the rule of law and adherence to the principles of the United Nations Charter. It stipulated that the Association would be open for participation by all States in the Southeast Asian region subscribing to its aims, principles and purposes. It proclaimed ASEAN as representing "the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity."

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International Marketing The ASEAN region has a population of about 500 million, a total area of 4.5 million square kilometers, a combined gross domestic product of US$737 billion, and a total trade of US$ 720 billion.

In 1995, the ASEAN Heads of States and Government reaffirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”

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International Marketing

FUNDAMENTAL PRINCIPLES
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24 February 1976, declared that in their relations with one another, the High Contracting Parties should be guided by the following fundamental principles: • Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations. • The right of every State to lead its national existence free from external interference, subversion or coercion. • • • • Non-interference in the internal affairs of one another. Settlement of differences or disputes by peaceful manner. Renunciation of the threat or use of force; and Effective cooperation among themselves.

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International Marketing

OBJECTIVES
The ASEAN Declaration states that the aims and purposes of the Association are: • To accelerate the economic growth, social progress and

cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations. • To promote regional peace and stability through abiding

respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter. In 1995, the ASEAN Heads of States and Government reaffirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”

Member Countries
Brunei Darussalam

Cambodia

Indonesia

Laos

Malaysia

Myanmar

Philippines

Singapore

Thailand

Vietnam

Strength of ASEAN praised
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International Marketing HA NOI — Prime Minister Phan Van Khai on Sunday night praised the success of ASEAN in "striving for the common targets of peace, stability and development" as he officially opened ASEAN Culture Week at the Ha Noi Opera House. "We are proud to say that ASEAN is the most successful association of developing nations. "We are firmly building a strong and united ASEAN based on three pillars: political security, and economic and socio-cultural cooperation. "These pillars, which are closely linked and support each other, will contribute to ensuring the long-lasting stability and prosperity of each country and the region as a whole." The festival, to be held in the capital city and Ha Long Bay, is to mark the 37th year of ASEAN. The art, food, traditional dress and customs of the association’s 10 member countries will be on display during the celebrations. This is only the second time an ASEAN Culture Week has been staged. The first was held in Cambodia last year and was initiated by PM Khai at the ASEAN summit in Brunei in 1999. Khai told the opening ceremony audience that ASEAN had weathered many difficult situations in its history, including the financial crisis of 1997, economic recession in 1999 and 2000, terrorist attacks and epidemics. "The association’s success can be attributed to a typical ASEAN approach: the flexible and wise combination of the interests of each nation and of the whole region, so as to promote the political advantages of the region, as well as the cultural, social, political and economic diversities of each country member. "This has allowed us to turn challenges into opportunities, contradictions and competitions into negotiation and co-operation." Khai said that after nearly four decades of existence development, ASEAN was now at a turning point in its history. and

"It is an active group striving to become a politically strong community that has co-operates closely in economic fields, helping each other among developed societies, as was said in the Bali Declaration 2 and the ASEAN 2020 Vision." Khai said that although there were differences in economic development and politics, culture, languages and religion, ASEAN shared the same purpose: to development economically, maintain ASEAN 8

International Marketing peace and stability in the region, and create a base for the stable development of each country member and the region as whole. All the fundamental principles of the association – the principle of consensus, the respect for independence, sovereignty and territorial integrity and non-interference in each other’s internal affairs – have contributed to maintaining the balance between the demand for cooperation in the region and the interests of each member country. However, Khai said the fast pace of globalisation had raised a number of problems for which ASEAN had no solutions. "Globalisation has increased the dependence among nations so that when a crisis such as an epidemic, occurs in a country or a region, the impact spreads to other countries and other regions." "But ASEAN has succeeded in defining a suitable co-operation level and frame to mobilise all nations to deal with issues which concern everyone. "We would not abuse our co-operative relationships by using them to pressure and to interfere in the internal affairs of other countries," Khai said. "According to the ASEAN approach, we have coped with any issues successfully and have still ensured we do not interfere in the internal affairs of our fellow members." "Globalisation has also caused an increase in competition, particularly between our economies. For small and medium-sized economics, the best way of improving competitiveness is to enhance economic co-ordination and market unification." Khai said ASEAN should increase its efforts to reduce the economic gap between member countries and take advantage of the diversity in the region to support one another. "To improve economic co-ordination in ASEAN, we should combine bilateral co-operation between ASEAN and the world, with the enhancement of co-operation within ASEAN." ASEAN attached importance to it policy on making friends with all countries to enhance peace, security and economic development, Khai said. "ASEAN will play an important role in regional co-operation through forums and will strive for its long-term target of building an East Asia community with a central role for ASEAN."

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International Marketing "We believe the fundamental principles of ASEAN will remain a foundation for the development of the association in the long-term, even when the community is established as set out in the ASEAN Concord Declaration 2, approved by its leaders at the ninth ASEAN Summit in Bali last year." — VNS Unity is strength in ASEAN race to counter giants' economic clout ASEAN may be hobbled politically but the group is forging ahead on the economic front, crafting free trade and integration deals that analysts say are an attempt to counter the growing power of China and India. Martin Wednesday, Abbugao December 07, 2005

ASEAN may be hobbled politically but the group is forging ahead on the economic front, crafting free trade and integration deals that analysts say are an attempt to counter the growing power of China and India. Goaded by fears about the economic muscle of the two nations, the Association of South East Asian Nations is working to unite its fractious markets and maximize its clout with a population of more than 500 million people. China and India will "put pressure on industries and countries, and force the pace of change and restructuring everywhere," Singapore Prime Minister Lee Hsien Loong said last week. "All countries will need to respond to this tectonic shift, and develop new bases for competing and prospering." US business consultant Ernest Bower said that "ASEAN remains economically important only if it moves forward with integration" because "divided, ASEAN will have no real voice in Asian trade and investment plans." Bower, a former US-ASEAN Business ASEAN can hold its own as a group. Council president, said

"For instance, ASEAN still has about 1.5 times more US investment than China, and nearly eight times the investment American companies have in India," he said.

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International Marketing "ASEAN can and should be the fulcrum between India and China. It has the scale and scope to play this role of balancer and regional trade hub." The economic integration process is fraught with difficulties and may marginalize the group's poorer members, but if successful it may give ASEAN the punch it needs to compete globally for trade and investments. ASEAN has also emerged as the catalyst for a wider grouping when it roped in China, Japan and South Korea into its web of trade and economic integration initiatives. The addition of Australia, New Zealand and India at the inaugural East Asia Summit in Malaysia next week may lead to the formation of a powerful free trade area taking in about half the world's population, diplomats said. ASEAN and the United States last month said they had agreed to work together to conclude a region-wide framework deal on trade and investment, which some officials say could evolve into a freetrade pact. MC Abad, spokesman of ASEAN secretary general Ong Keng Yong, said integration is a top priority in order "to create an economy of scale both as a production base and as a market." He said economic integration is also a "confidence-building effort" for ASEAN's diverse members - Brunei, Cambodia, Indonesia, Laos, Malaysia, Burma, the Philippines, Singapore, Thailand and Vietnam. It is negotiating free-trade deals with China, India, Japan, South Korea, Australia and New Zealand. Individual countries have also moved to negotiate bilateral free trade treaties, while aiming to achieve zero tariffs within the group by 2015 under the ASEAN Free Trade Area. Poorer ASEAN members - Cambodia, Burma, Laos and Vietnam have meanwhile been given more time to wipe out tariffs. Key ASEAN members have signed currency swap deals that will help them to fight off financial crises such as in 1997 and 1998. Initiatives are also under way to link stock exchanges and develop the bond markets, but analysts say progress has been held back by regulatory barriers. Bower said ASEAN has made "great strides" in cutting tariffs, but dragged its feet on plans to give "national treatment" to investments from other ASEAN members, and in liberalizing the services sector.

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International Marketing

ASEAN SUMMITS

Tenth ASEAN Summit, Vientiane, 29-30 November 2004 Ninth ASEAN Summit, Bali, 7-8 October 2003 Eighth ASEAN Summit, Phnom Penh, 4-5 November 2002 Seventh ASEAN Summit, Bandar Seri Begawan, 5-6 November 2001 Fourth Informal Summit, Singapore, 22-25 November 2000 Third Informal Summit, Manila, 27-28 November 1999 Sixth ASEAN Summit, Ha Noi, 15-16 December 1998 Second Informal Summit, Kuala Lumpur, 14-16 December 1997 First Informal Summit, Jakarta, 30 November 1996 Fourth ASEAN Summit, Singapore, 27-29 January 1992 Third ASEAN Summit, Manila, 14-15 December 1987

Eleventh ASEAN Summit, Kuala Lumpur, 12-14 December 2005 Chairman’s Statement of the 11th ASEAN Summit “ O n e V i s i o n , O n e I d e n t i t y , O n e C om m u n i t y ” Kuala Lumpur, 12 December 2005
1. The 11th ASEAN Summit, with the theme “One Vision, One Identity, One Community”, was chaired by The Honourable Dato’ Seri Abdullah Ahmad Badawi, the Chairman of the 11th ASEAN Summit and the Prime Minister of Malaysia. The Leaders of ASEAN 12

International Marketing ASEAN had a productive meeting, which was held in plenary, and in retreat for the first time allowing for candid and frank discussions. 2. A total of 10 documents listed in the Annex, were issued as the outcome of the 11th ASEAN Summit.

Malaysia will host the 11th ASEAN Summit and Related Summits from 12 – 14 December 2005. The ASEAN Summit is an annual meeting held on a rotational basis by the country which holds the Chairmanship of the ASEAN Standing Committee. The Related Summits that are to be held around that time are the 9th ASEAN + 3 Summit , 9th ASEAN + China Summit, 9th ASEAN + Japan Summit, 9th ASEAN + Republic of Korea Summit and 4th ASEAN + India Summit. Malaysia will also be hosting the first ASEAN + Russia Summit. The highlight of these high-level meetings will be the staging of the First East Asia Summit (EAS) on 14th December 2005. The ASEAN Summit is geared towards strengthening ASEAN as a regional institution that is competent in managing issues of regional and international concern in an effective and productive way. The meetings would provide opportunities to Leaders of ASEAN member countries to evaluate the relations and cooperation within the grouping as well as identifying the most appropriate measures in defining the direction of ASEAN. While Summits of ASEAN and its dialogue partners namely China , Japan , Republic of Korea , India and Russia allows ASEAN to strengthen its cooperation with these nations. The inaugural East Asia Summit is expected to draw ASEAN to closer and substantial relations with China , Japan , Republic of Korea, India, Australia and New Zealand .

Malaysia will also host two other Summits, namely the Second Brunei Indonesia Malaysia Philippines East ASEAN Growth Areas (BIMP-EAGA) Summit and the First Indonesia Malaysia Thailand Growth Triangle (IMT-GT) Summit on the sidelines of the 11th ASEAN Summit . They were aimed at enhancing subregional cooperation. While Cambodia , Laos , Myanmar and Vietnam will hold their Second CLMV Summit. To make preparations and lay the groundwork for these toplevel meetings, senior officials and Ministers from these countries will meet in Kuala Lumpur from 6th to11th December 2005 at various senior officials' and ministerial level meetings.ASEAN or the Association of South East Asian Nation has a population of about 500 million, a total area of 4.5 ASEAN 13

International Marketing million sq. km, a combined gross domestic product of US$737 billion, and a total trade of US$720 billion. The private sector in ASEAN will also play an active role during the busy summit period as Kuala Lumpur will stage the 2005 ASEAN Business and Investment Summit from Dec 9 to 11. The Business and Investment Summit, which is the third in the series, will be sponsored by the ASEAN Business Advisory Council. Besides complementing the 11th ASEAN Summit, its objectives are to foster an exchange of views and perceptions between the private sector and government within ASEAN and East Asia and to facilitate commerce and trade between the communities in this region. It will also help explore intra- and inter- ASEAN/East Asia business and investment opportunities and highlight the enormous investment potentials of the ASEAN and East Asian regions.

ONE VISION, ONE IDENTITY, ONE COMMUNITY

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International Marketing The Twin Towers was chosen as a recognizable symbol for Kuala Lumpur . Twin towers symbolizes the progressive growth of ASEAN where all its members move together in tandem to achieve a common goal. The two pinnacles signify the promotion of physical and spiritual growth and development. The ASEAN logo between the pinnacles, signifies the goal of ASEAN member countries to achieve an ASEAN Community. The ASEAN logo at the centre signifies regional integration. The ASEAN logo at the centre of the two towers also signifies ASEAN being the driving force in its relations with the Dialogue Partners. The sky bridge symbolizes the narrowing of development gap among ASEAN member countries. Indirectly, the twin towers also reflects the number eleven, in line with this being the 11th ASEAN Summit.

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International Marketing

AEM AMM AFMM SEOM ASC SOM ASFOM

ASEAN Economic Ministers ASEAN Ministerial Meeting ASEAN Finance Ministers Meeting Senior Economic Officials Meeting ASEAN Standing Committee Senior Officials Meeting ASEAN Meeting Senior Finance Officials

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International Marketing

TRADE
ASEAN's exports had regained its upward trend in the two years following the financial crisis of 1997-1998 reaching its peak in 2000 when total exports was valued US$ 408 billion. After declining to US$ 366.8 billion in 2001, as a result of the economic slowdown in the United States and Europe and the recession in Japan, ASEAN exports recovered in 2002 when it was valued at US$ 380.2 billion. The upward trend for ASEAN-6 continued up to first two quarters of 2003. Intra-ASEAN trade for the first two quarters of 2003 registered an increase of 4.2 and 1.6 percent for exports and imports respectively. [Figures 2, 3 & 4]

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International Marketing

ASEAN Trade with Selected Trading Partners
The United States, the European Union and Japan continued to be ASEAN’s largest export markets. Japan, followed by the U.S. and EU, were the largest sources of ASEAN imports. During the first half of 2002-2003, ASEAN-6 trade with major markets as a whole increased by 11.71 percent for exports and 6.91 percent for imports. However, ASEAN exports to the U.S. and India and imports from Canada and India declined during the same period. [Figure 5]

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ASEAN VISION 2020
ASEAN shall have, by the year 2020, established a peaceful and stable Southeast Asia where each nation is at peace with itself and where the causes for conflict have been eliminated, through abiding respect for justice and the rule of law and through the strengthening of national and regional resilience. • Maintain regional macroeconomic and financial stability by promoting closer consultations in macroeconomic and financial policies. • Advance economic integration and cooperation by undertaking the following general strategies: fully implement the ASEAN Free Trade Area and accelerate liberalization of trade in services, realise the ASEAN Investment Area by 2010 and free flow of investments by 2020; intensify and expand subregional cooperation in existing and new sub-regional growth areas; further consolidate and expand extra-ASEAN regional linkages for mutual benefit cooperate to strengthen the multilateral trading system, and reinforce the role of the business sector as the engine of growth. • Promote a modern and competitive small and medium

enterprises (SME) sector in ASEAN which will contribute to the industrial development and efficiency of the region. • Accelerate the free flow of professional and other services in the region. • Promote financial sector liberalisation and closer cooperation in money and capital market, tax, insurance and customs

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International Marketing matters as well as closer consultations in macroeconomic and financial policies. • Accelerate the development of science and technology

including information technology by establishing a regional information technology network and centers of excellence for dissemination of and easy access to data and information. • Establish interconnecting arrangements in the field of energy and utilities for electricity, natural gas and water within ASEAN through the ASEAN Power Grid and a Trans-ASEAN Gas Pipeline and Water Pipeline, and promote cooperation in energy efficiency and conservation, as well as the development of new and renewable energy resources. • Enhance food security and international competitiveness of food, agricultural and forest products, to make ASEAN a leading producer of these products, and promote the forestry sector as a model in forest management, conservation and sustainable development. • Meet the ever increasing demand for improved infrastructure and communications technology by developing in an integrated network and and and harmonized harnessing information information facilitating trans-ASEAN transportation

advances

telecommunication corridors and through frequencies and in

technology, especially highways/multimedia goods in

in linking the planned ASEAN, integrating greater mutual

promoting open sky policy, developing multi-modal transport, transit of telecommunications interconnectivity, networks coordination

recognition of equipment-type approval procedures.

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International Marketing • Enhance human resource development in all sectors of the economy through quality education, upgrading of skills and capabilities and training. • Work towards a world class standards and conformance system that will provide a harmonised system to facilitate the free flow of ASEAN trade while meeting health, safety and environmental needs. • Use the ASEAN Foundation as one of the instruments to address issues of unequal economic development, poverty and socioeconomic disparities. • Promote an ASEAN customs partnership for world class

standards and excellence in efficiency, professionalism and service, and uniformity through harmonised procedures, to promote trade and investment and to protect the health and well-being of the ASEAN community. • Enhance intra-ASEAN trade and investment in the mineral sector and to contribute towards a technologically competent ASEAN through closer networking and sharing of information on mineral and geosciences as well as to enhance cooperation and partnership with dialogue partners to facilitate the development and transfer of technology in the mineral sector, particularly in the downstream research and the geosciences and to develop appropriate mechanism for these.

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