Over the past two years, ASEAN markets have become more important for
58 percent of respondents of a poll of 588 senior executives
representing US companies in all 10 ASEAN countries.
The ASEAN Business Outlook Survey, the 13th of its kind, was conducted
by the US Chamber of Commerce and the American Chamber of Commerce in
Singapore (AmCham Singapore ) from May 5 to June 5.
According to the survey results, released in Singapore on August
28, 74 percent reported that their companies’ level of trade and
investment in ASEAN has increased over the past two years, and 89
percent of respondents expect it to rise over the next five years.
Region-wide, respondents reported that Indonesia ,
Vietnam and Myanmar are the priority markets for future business
expansion, accounting for 41 percent, 37 percent and 35 percent,
respectively.
The profit outlook is solid
with 63 percent of the executives expecting profit increases this year,
and 81 per cent next year. As many as 53 percent of the respondents
expect their companies’ workforce to expand this year, while only 5
percent hope for decreases.
The vast majority
(81 per cent) of surveyed business executives in all the 10 ASEAN
countries believe that ASEAN integration is important in helping their
companies do business in the region.
The
survey also revealed that US companies take advantage of regional
economic integration efforts, including ASEAN’s free trade agreements
(FTAs) with Australia and New Zealand , China , India , Japan,
and the Republic of Korea.
Nearly half (49 percent)
reported that they use the FTAs to export goods from ASEAN to China .
American companies’ use of the other FTAs ranges between 43-47 percent.
As many as 98 percent of respondents in the region said that the
Regional Comprehensive Economic Partnership (RCEP) will either help or
have a neutral effect on their companies’ trade and investment in the
region.
Meanwhile, 51 percent thought that the Trans-Pacific
Partnership (TPP) agreement will help their companies’ trade and
investment with Indonesia , Malaysia , Singapore , and Vietnam –
the four ASEAN members participating in TPP negotiations.
“This survey substantiates what ASEAN-based executives of US companies
witness every day – ASEAN is a dynamic and forward-looking region with
enormous growth potential, energetic populations, and exciting prospects
for regional integration,” said AmCham Singapore Chairman James
Andrade.
However, it also found substantial
concerns to companies’ growth in the region, including corruption,
burdensome laws and regulations, lack of transparency, poor quality of
infrastructure, and the difficulty in moving products through customs in
some countries.-VNA