A Value Chain Approach to Support Southeast Asian Economic Regionalism

Abstract

This article includes an exploration of the economic data sets of the Association of Southeast Asian Nations (ASEAN) Statistics, the World Bank, and the International Monetary Fund, as well as primary regional economic initiatives and agreements to assess the strategic indicators of economic regionalism using thematic analysis. The aim of this research is to determine how Southeast Asian regionalism can circumvent vulnerabilities to another economic crisis in North America and the European Union. To correct such financial vulnerabilities, ASEAN has significantly remolded the region into a single market consisting of a 10-nation integrated production base. The ASEAN Economic Community’s main pillars are the establishment of a regional economic foundation based on comprehensive investment initiatives; the liberalization of capital markets, tariffs, and professional labor; infrastructure connectivity; regional policy integration; and free trade agreements to create a regional value chain as part of a single market and production base. The more attainable this comprehensive value-capture-and-integration process becomes, the more attractive it will appear to the global economic investment community and for business opportunities to establish a robust regional foundation. Although the process appears straightforward, capturing value is not a single phenomenon or method, but rather a multifaceted phenomenon, as explored in this study. The regional integration model seeks profitability within effective cross-border production networks and regional liberalization.

Untitled

“…ASEAN later created the ASEAN Single Window (ASW) as an integrated platform to facilitate trade through rapid freight clearances and shipment releases to fulfill ASEAN's vision and mission (Srisangnam, and Devendrakumar, 2018). The ASW links the National Single Window (NSW) of each Member State to permit single and coordinated data submission and processing as well as a single customs clearance approval point (Jones, 2019). As the processes for the clearance of cargos and shipments in the region are simplified (Nambiar, 2018), ASW is expected to improve cross-border trade.…”

Enhancing Social Integration through Intra-ASEAN Travel

“…Tay and Zainul (2017) state that efforts are still being made to strengthen the ASEAN Community Blueprint 2025. In order to achieve equitable economic growth in the region, the regional focus areas for economic integration Enhancing Social Integration include a digital single market, financial integration, policy integration, and connectivity (Jones, 2019). ASEAN aims to make the region more integrated by focusing on the region's political stability, economic integration, and socio-cultural pillars.…”