EU-ASEAN BUSINESS NETWORKS Your Gateway to South-East Asia

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EU-ASEAN BUSINESS NETWORKSYour Gateway to
South-East Asia
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GATEWAY TO ASEAN
The Association of Southeast Asian Nations (ASEAN)
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GATEWAY TO ASEAN
ASEAN key facts
ASEAN Population 625 million (9 of the world's
population) Median age 28 years  EU Population
500 million (7.3 of the worlds population)
 Median age  40 years in EU
ASEAN GDP USD 3.3 trillion GDP Growth
(2013) 5.2 EU GDP USD 16.6 trillion  GDP
Growth (2013) 0.1
Foreign Direct Investment (FDI) US115 billion
The EU is the biggest provider of Foreign Direct
Investment into ASEAN. EU FDI is 22 of the total
in 2013
ASEAN Economic Community (AEC) moving towards a
single market 4 Pillars Single Market and
Production Base, Competitive Economic Region,
Equitable Economic Development , Integration into
the Global Economy
Free Trade Agreements in place China (ACFTA),
Japan (AJCEP), Korea (AKFTA), India (AITIG),
Australia-NZ (AANZFTA), and EU has concluded a
FTA with Singapore and is negotiating FTAs with
several other ASEAN countries (Vietnam, Thailand,
Malaysia, Indonesia)
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GATEWAY TO ASEAN
ASEAN key facts
Year of entry into ASEAN Population Million GDP Billion GDP per capita of US level Real growth of GDP, 2003 13
Brunei 1984 0.4 17 78 1.1
Cambodia 1999 15.1 15.5 2 7.8
Indonesia 1967 249.9 868.3 7 5.8
Laos 1997 6.8 10.9 3 7.8
Malaysia 1967 29.7 312.4 20 5
Myanmar 1997 62.8 59 2 8.6
Philippines 1967 98.4 272 5 5.4
Singapore 1967 5.4 295.7 103 6.3
Thailand 1967 67 387.2 11 3.8
Vietnam 1995 91.7 171.2 4 6.4
Source HIS, McKinsey Global Institute Analysis
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GATEWAY TO ASEAN
ASEAN key economics
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GATEWAY TO ASEAN
EU - ASEAN trade performance
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GATEWAY TO ASEAN
EU - ASEAN Business Networks
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EU BUSINESS NETWORKS IN THE REGION
Attracting EU businesses into the region and
supporting them in their market entry activities
Increasing EU Business leverage towards the
ASEAN Governments.
The projects
Increase and improve export and investment of EU
businesses to the ASEAN regional market.
Objectives
European businesses in Europe, in particular
SMEs, with an interest in ASEAN markets. Existing
European companies in ASEAN which need to
increase their presence and visibility.
Target group
Joint expertise, knowledge and experience of
well-established European business support
organizations with an extensive network in ASEAN
and the EU.
Expertise
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PHILIPPINES THE RISING TIGER OF ASIA

• ASEAN ROADSHOW
• VILNIUS, LITHUANIA
• MAY 12, 2015

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Philippines - Country facts
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Economic overview

• GDP growth 2014 6.1. Government target 6-7 in
  2015-2016.
• GDP is heavily dependent on the service sector
• Service sector 57.1, industry 37.1, agriculture
  11.8 of GPD in 2012
• Consumption-driven economy - 69.4 of GDP is
  formed by private consumption
• Fueled by overseas remittances amounting to 24.4
  billion and the Business Process Management
  industry 18.4 billion (2014)
• Other growth sectors are manufacturing and
  construction (7.5 growth in 2014), and real
  estate services and financial intermediation -gt
  6 growth rate in the overall services sector in
  2014
• Total exports 61.8 billion, imports 64.5 billion

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Investment climate

• Investment grade ratings (Fitch, SP, Moodys,
  Japan, Korea)
• FDI 6.2 billion in 2014, six times higher than
  in 2010
• Government incentives
• Board of Investment - Investment Priority Plan
• Philippine Economic Zone Authority (PEZA) for
  export-oriented activities
• Foreign ownership
• Foreigners can invest up to 100 equity in
  corporations, partnerships and other entities in
  the Philippines, except in areas included in the
  Foreign Investments Negative List (FINL)

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Lithuania-Philippines Bilateral Trade
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Areas of opportunity

• Energy/Renewables Environmental technologies
• ICT IT/BPM
• Food/Agriculture
• Infrastructure Transport
• Maritime
• Tourism
• Healthcare/Medical Pharmaceuticals
• Consumer Goods/Retail
• Financial Services
• Manufacturing
• Mining
• Automotive

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Areas of opportunity

• Information Technology and Business Process
  Management
• Philippines is world no. 1 in voice services, no.
  2 in non-voice services
• Metro Manila region world no. 2
  outsourcing/offshoring destination after
  Bangalore
• One of the fastest growing industries in the
  Philippines, CAGR 26 (2006-2013)
• Environment / Renewable Energy
• National Renewable Energy Program aims to triple
  the yearly production capacity of renewable
  energy by 2030, currently 5030 MW. Program relies
  heavily on private sector.
• Solid waste management systems being developed
  according to the implemented act RA 9003. Aim to
  reach recycling ratio of 25 percent.
• Lots of untapped potential in the treatment of
  hazardous and medical waste.

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Areas of opportunity

• Infrastructure
• Public infrastructure budget increased by 17,7
  for 2014 (US7,04bn).
• Construction industry the fastest growing in Asia
  on medium-term after Myanmar. Value US21bn
  (2014), year-on-year growth rate 47
• Public-Private-Partnership projects
• Healthcare Pharmaceuticals
• Department of Health operates with the biggest
  budget among government departments. National
  health insurance act was signed in July 2013 to
  insure every Filipino, currently covers 83 of
  the population
• The revenue of pharmaceuticals industry is
  expected to double to US8bn by 2020

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Doing business in the Philippines

• Strengths
• Strong macroeconomic fundamentals
• Educated, young, and English-speaking labor force
• Improving governance
• Renaissance of manufacturing
• Overseas remittances
• Strategic geographic location launching pad for
  AEC

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Doing business in the Philippines

• Challenges
• Corruption
• Red tape and Bureaucracy
• High rate of poverty
• Inefficient infrastructures
• Low rates of investments to GDP
• Low Foreign Direct Investments

• Strengths
• Strong macroeconomic fundamentals
• Educated, young, and English-speaking labor force
• Improving governance
• Renaissance of manufacturing
• Overseas remittances
• Strategic geographic location launching pad for
  AEC

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EU-Philippines Business Network

• Partnership of eight chambers of commerce
  operating in Manila

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EPBN Services

• Advocacy and market access
• 14 industry-led sector committees ad hoc
  support
• Business support
• Market studies, business matching, new market
  entry support, business development
• Business missions
• Ministerial private sector business delegations
• Government relations
• Embassies and Philippine government agencies

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Questions Answers

• Contact information
• Joona Selin
• EU Outreach Business Support Manager
• joona.selin_at_epbn.ph