Asean competitiveness survey

 ASEAN Business Advisory Council 2013 The ASEAN-BAC Survey on ASEAN Competitiveness is conducted by the ASEAN Business Advisory Council (ASEANBAC) in collaboration with Dr Marn-Heong Wong, Assistant Professor at the Lee Kuan Yew School of Public Policy This work is subject to copyright The work may be reproduced in whole or in part for study or training purposes, subject to the inclusion of an acknowledgement of the source The cover design of this report is by Theresa Theodorus ASEAN BUSINESS ADVISORY COUNCIL The ASEAN Business Advisory Council (ASEAN-BAC) was established by the ASEAN Heads of State and Government (HOSGs) at the 7th ASEAN Summit in November 2001 in Bandar Seri Begawan, Brunei Darussalam Inaugurated at the ASEAN Secretariat in Jakarta, Indonesia in April 2003, ASEAN-BAC’s primary mission is to promote public-private sector partnership in the creation of an ASEAN Economic Community (AEC) ASEAN-BAC provides private sector feedback on the implementation of ASEAN economic cooperation and identifies priority areas for the consideration of the ASEAN Leaders More information on the ASEAN-BAC can be obtained from www.asean-bac.org LEE KUAN YEW SCHOOL OF PUBLIC POLICY The Lee Kuan Yew School of Public Policy (LKY School) was formally established in 2004 as an autonomous graduate school of the National University of Singapore (NUS) Its mission is to provide opportunities for the education and training of the next generation of Asian policymakers and leaders, with the objective of raising the standards of governance throughout the region, improving the lives of the people in the region and, in so doing, contribute to the transformation of Asia More information on the LKY School can be obtained from lkyspp.nus.edu.sg An appropriate citation for this report is: Wong, M-H and Wirjo, A., 2013 Findings from 2013 ASEAN-BAC Survey on ASEAN Competitiveness, Jakarta: ASEAN Business Advisory Council A copy of this report can be downloaded at: lkyspp.nus.edu.sg/2013-ASEAN-BAC-Survey-Report or www.asean-bac.org KEY POINTS  The 2013 ASEAN-BAC Survey collated 502 usable responses across various firm-size categories, age, ownership profiles and industries from all ten ASEAN countries  Not all businesses engage in export or outward foreign direct investment (OFDI) activities Around one-third of the businesses did not so and had no plans to so over the next three years The majority were either small or local firms, and cited reasons such as the intention to focus on the local market, financial constraints and competition from abroad for not internationalizing  Businesses that have internationalized tend to be larger, older and have foreign equity ownership A much higher share engaged in export rather than OFDI activities A global mindset of the top manager and a more dynamic industry environment seem to spur firm internationalization  Investor interest in ASEAN region remains strong More than half of the businesses that had internationalized or planned to so indicated an ASEAN country as the most attractive country in the world for their OFDI, and 94 percent planned to invest or increase investments in an ASEAN country over the next three years (2013-2015) ASEAN’s attractiveness also continued to be rated higher than China’s both as a market for the sale of goods and services and as a production location  Businesses increasingly are adopting an ‘ASEAN strategy’ in response to ASEAN’s move towards an ASEAN Economic Community (AEC) Close to half of the businesses considered the investment attractiveness of the ASEAN region as a whole when planning their investments in ASEAN countries over the next three years  More businesses are using preferential provisions in free trade agreements (FTAs) concluded by ASEAN About a third of the businesses had used at least one FTA, but lack of information is a main constraint to an increase in utilization rate  ASEAN economic integration is seen more as an opportunity rather than a threat for business However, this sentiment is shared by fewer small or local firms  Businesses expressed slightly above-average satisfaction with ASEAN’s implementation of the AEC Blueprint overall and across most selected policy areas Consultation with businesses and dissemination of information on AEC initiatives had been among the least satisfactory areas rated by businesses over three waves of this Survey Businesses also suggested improvements to selected rules and regulations in their qualitative responses  Arising from these findings, ASEAN-BAC would like to make the following policy recommendations: (1) ASEAN must ensure that there is timely and effective implementation of measures towards an AEC to spur even more businesses to adopt an ASEAN strategy (2) ASEAN is strongly urged to strengthen the process of information dissemination and consultation with businesses on AEC initiatives (3) ASEAN should redouble its efforts to reach out to local small firms - to allay their fear of ASEAN economic integration and alert them to the opportunities from an AEC (4) To increase business use of ASEAN FTAs, ASEAN should raise awareness among businesses of these FTAs and make information relating to their use more easily and widely available (5) ASEAN should give priority attention to harmonizing, simplifying and enhancing the transparency of rules and regulations in the areas of business registration, investment and customs procedures (6) ASEAN should step up measures to facilitate the internationalization of local small firms especially through exporting, which requires less resources compared with OFDI It can so by addressing their financial constraints, enhancing their understanding of overseas markets and improving their capabilities Background and aims The ASEAN region maintained its robustness in a global economic environment that continues to remain challenging and uncertain The Gross Domestic Product (GDP) of ASEAN as a whole grew by 5.7 percent in 2012, an increase from 4.5 percent in 2011 ASEAN’s total exports grew at a slower rate of 2.7 percent in 2012, from 16.8 percent in 2011 However, the region’s share of world export of goods and services was almost unchanged in 2012 at 6.7 percent, from 6.6 percent the year before In terms of foreign direct investment (FDI) inflows, ASEAN attracted a record US$111 billion in 2012, the highest value ever achieved since its formation ASEAN’s share of world FDI inflows of 8.2 percent in 2012 was the first time that the region has been able to cross the percent mark since 19961 These are encouraging signs of ASEAN’s ability to sustain and increase its competitiveness for trade and investments The challenge for ASEAN is to build on this momentum and ensure that member states effectively implement measures to deepen economic integration and provide a conducive environment for business activities to boost economic growth The ASEAN Business Advisory Council (ASEAN-BAC), since 2010, has partnered with the Lee Kuan Yew School of Public Policy, National University of Singaporei to conduct a survey of businesses based in ASEAN to channel feedback from the business community to the policymakers Findings from the 2010 and 2011-12 ASEAN-BAC Survey on ASEAN Competitiveness and related policy recommendations were presented to ASEAN Leaders and Economic Ministers during their annual dialogue and consultation sessions with ASEAN-BAC in Vietnam, Indonesia and Cambodia2,3 The 2013 ASEAN-BAC Survey on ASEAN Competitiveness continues to track business sentiments towards the attractiveness of ASEAN to trade and investments over a three-year horizon and their perceptions of ASEAN’s efforts to realize an ASEAN Economic Community (AEC) by the end of 2015 The 2013 Survey also collates extended information on the characteristics of firms that are engaged in export or outward FDI activities versus those that are not, in order to promote a better understanding of their profiles and the drivers of firms’ internationalization In addition, the 2013 Survey collects responses on the extent of business’ use of preferential provisions in various free trade agreements concluded by ASEAN and the associated impediments Survey methodology The 2013 ASEAN-BAC Survey was conducted across all ten ASEAN countries between May and August 2013 Respondents included businesses that were participants in the previous two waves of the Survey, past nominees of ASEAN-BAC’s ASEAN Business Awards, as well as businesses that had been identified through various ways by ASEAN-BAC Council Members and Secretariat, national business organizations and local research assistants Potential respondents were generally invited to participate in the Survey through emails, phone calls and LinkedIn Respondents were given a structured questionnaire and requested to provide responses from the perspectives of their organizations (in the country in which they were based) to i The Survey Project Lead Researcher is Dr Marn-Heong Wong, Assistant Professor at the Lee Kuan Yew School of Public Policy approximate organizational-level business perceptions on ASEAN competitiveness and economic integration The Survey was voluntary and available in both paper and electronic formats Responses were collected through a mix of telephone interviews and online selfadministration of the survey questionnaire Where possible, local research assistants surveyed the respondents by phone Self-administration was given as an option if respondents declined to be interviewed through the phone for various reasons For inclusivity, respondents could choose to be interviewed in any of the national languages of ASEAN countries Results from the 2013 Survey are compared with findings from other studies where available to highlight similarities or differences They are also compared with results from the 2010 and 2011-12 Surveys where appropriate, to note if responses had changed over time4 Respondent profile 502 usable responses were collected at the end of the survey period Indonesia, Singapore, Thailand and Vietnam together contributed 72 percent of the respondents (Figure 1a) The higher share of respondents from these countries was partly by design, as these are the larger economies by population size and/or GDP By country of global headquarter, about 85 percent of the businesses are headquartered in ASEAN countries with the majority of them in Thailand, Vietnam, Singapore and Indonesia The rest of the businesses have headquarters mainly in Europe, Japan and the United States (US) By firm-size categories, 49 percent of the respondents were from small firms, while 23 and 28 percent were from medium-sized and large enterprises respectively (Figure 1b) Similar to the previous Surveys, firms are classified by employment size thresholds in this report, where small, medium and large firms are defined as those having less than 50 employees, 50-200 and more than 200 employees respectively5 In terms of industry profile, the main activity of 59 percent of the businesses was in the services sector, 30 percent in the manufacturing sector and 11 percent in other sectors such as agriculture, mining and construction By foreign equity ownership, more than 70 percent of the businesses were either wholly locally-owned or had at most 10 percent foreign equity ownership These businesses can be considered ‘local firms’ and will be referred to as such in subsequent paragraphs, given that 10 percent equity ownership is the threshold for a foreign investor to qualify as a foreign direct investor with lasting interest and effective voice in the management of an enterprise6 The remaining businesses had more than 10 percent foreign equity ownership (Figure 1c) By firm size, local firms made up 82, 66 and 56 percent of small, medium-sized and large firms respectively 97 percent of businesses in the sample were majority-owned by the private sector By firm age, percent of the respondents were relatively young firms that had been in operation for less than two years Approximately 60 percent of the firms had been in operation for at least 10 years (Figure 1d) Figure 1: Respondent profile (% of Respondents) a Respondent location c Foreign equity ownership b Firm size d Firm age Source: Authors’ calculations based on survey data International activities of ASEAN-based firms Export About 45 percent of businesses in the sample indicated that they exported to other countries (Figure 2) There was wide variation across country subsamples, where the share of firms having export activities ranged from 19 percent for Indonesia to 66 percent for Singapore By industry, a higher share of manufacturing firms (61 percent) and those in agriculture and/or mining (which were categorized under ‘others’) (48 percent) had export activities relative to firms in the service industries (37 percent) This is in agreement with the observation that industries producing tradable goods were more predisposed to exporting (Bernard et al 2007) A lower share of local firms (41 percent) engaged in export activities relative to firms with more than 10 percent foreign equity ownership (56 percent), where the share increased with the level of foreign equity ownership This could be an indication that foreign equity ownership increases the extent of firm’s internationalization through the provision of more information about foreign markets as well as through the provision of skills and technologies that enhance firm productivity (Aitken et al 1997, Srinivasan and Archana 2011, Wignaraja 2012) In terms of firm size, a higher share of large enterprises (56 percent) had export activities relative to small (35 percent) and medium-sized firms (54 percent), concurring with the general view that smaller firms, constrained by their resources, face greater barriers when attempting to undertake export activities (Wignaraja 2012) By firm age, the share of firms that are exporters increased with the number of years that the firms had been in operation While only 27 percent of firms that had existed for less than years were exporters, 36 percent of firms that had been in operation between 2-5 years indicated that they undertook export activities Close to half of the firms that had been in operation for more than years undertook export activities Figure 2: Share of exporters and non-exporters a Overall and by firm size b Exporters by country (% of Respondents) Source: Authors’ calculations based on survey data Among the exporters, half of them began their export activities less than years after they started operation, 26 percent between 2-9 years after inception while the remaining began exporting after operating for at least 10 years By firm size, a higher share of small firms (70 percent) exported less than years after inception relative to medium-sized firms (40 percent), which in turn was higher than the share of large enterprises (37 percent) These indicate that although smaller firms were constrained by resources, those that exported did so much earlier than their larger counterparts One way to reconcile this seeming contradiction on the role of resources on the ability of small firms to export is to divide resources into tangible and intangible ones While availability of tangible resources might The second question asked respondents to identify the most useful policy improvement that their government could make to increase their organization’s competitiveness to participate in trade and investment activities with other ASEAN countries Businesses’ suggestions of policy improvements fell under several broad areas The largest share of respondents (45 percent) suggested the need to make the rules and regulations both in the country where they were based and in other ASEAN countries more simplified, standardized and transparent, especially those relating to investments as well as export and import procedures This is followed by information dissemination and consultation with businesses on ASEAN policy initiatives (21 percent), tariff reduction and elimination (17 percent) and access to financing (9 percent) Q: What would be the most useful policy improvement your government could make to increase your organization’s competitiveness to participate in trade and investment activities with other ASEAN countries? “Consistent dissemination of information to local business about the opportunities to grow the business across the borders Not only some general information such as the formation of the AEC, but also the specific and technical knowledge about the tariffs, procedures, latest update on AEC, etc.” “Establishing policies to help SMEs in the following areas: providing funds, simplifying administrative procedures regarding land, lowering tariffs and investing in human resources to improve their management skills.” “Transparent, standardized and consistent investment rules.” 24 Overall assessment and policy recommendations The 2013 ASEAN-BAC Survey on ASEAN Competitiveness collated responses from businesses across all ten ASEAN countries, comprising a mix of small, medium and large firms More than 70 percent of businesses in the sample were local firms (with zero or at most 10 percent foreign equity ownership) Thus, the findings could be considered to reflect more of the views of local ASEAN businesses Of the 502 businesses that responded to the Survey, around one-third did not engage in export or OFDI activities and had no plans to so in the next three years The majority of these were either small firms or local firms Aside from the intention to focus on the local market, financial constraints and competition from abroad were among the main reasons given by these firms for not engaging in international activities Of the businesses that were engaged in international activities, a much higher share (45 percent) were exporters rather than outward foreign direct investors (23 percent) Firms that had internationalized tended to be larger, older and had more than 10 percent foreign equity ownership A substantial portion exported to or invested in at least one ASEAN country within the first three years of their international activities There was evidence that firms’ internationalization was positively correlated with their top managers’ international work experience and global mindset as well as a more dynamic industry environment that was characterised by continuous changes in competitive conditions Investor interest in ASEAN countries remains strong More than half of the businesses that had internationalized or planned to so within the next three years indicated an ASEAN country as the most attractive country in the world for their OFDI, and 94 percent planned to invest or increase investments in an ASEAN country over the next three years These reflect investors’ sustained or increased interest in ASEAN countries, most notably Myanmar An increasing number of businesses, including large enterprises, had rated ASEAN to be more attractive as a market and production base relative to China over successive waves of this Survey There are growing signs that more businesses are adopting an ‘ASEAN strategy’ in their approach to expansion, marketing and branding in response to ASEAN’s move towards an AEC Close to half of the businesses took into account ASEAN’s overall attractiveness in planning their investments in ASEAN countries, up from two-fifths in the 2011-12 Survey More businesses are using preferential provisions in at least one FTA concluded by ASEAN, with the share increasing from over 20 percent in the 2010 Survey to one third in this Survey Lack of information was identified as the top constraint that impeded business use of the FTAs Other significant impediments included delays and administrative costs and difficulty in meeting Rules of Origin requirements The majority of businesses perceived ASEAN economic integration to present more of an opportunity rather than a threat However, more of the small or local firms assessed the threat of ASEAN economic integration for their organization to be higher and the opportunity offered lower compared with medium and large firms and those with more than 10 percent foreign equity ownership 25 The share of businesses that believed ASEAN has a high or very high likelihood of achieving an AEC by the end of 2015 has increased from the 2010 Survey However, the majority still perceived this probability to be medium, low or very low Although a relatively small share of respondents indicated that ASEAN’s failure to form an AEC would impose a high or very high cost to their business, over 70 percent of respondents shared that the implementation of policy measures to form an AEC was of at least medium importance to their firms’ decision to expand exports or direct investments in ASEAN Businesses expressed slightly above-average satisfaction with ASEAN’s overall implementation of the AEC Blueprint Their level of satisfaction across 16 selected policy areas were all slightly above average, except for one area – the dissemination of information on AEC initiatives, which was rated to be somewhat below average The area that received the second lowest satisfaction rating was consultation with businesses on AEC initiatives Through qualitative responses, the highest share of businesses zeroed in on the harmonization, simplification and transparency of rules and regulations, especially those that relate to business registration, investment and customs procedures, as the area where ASEAN governments could make the most useful policy improvement to increase the competitiveness of businesses to participate in trade and investment activities in ASEAN Again the suggestion for greater information dissemination and consultation with businesses was raised by a considerable share of businesses In sum, not all businesses participate in international activities and those that not so tend to be the local small firms For businesses that have internationalized, ASEAN is an attractive region for their investments A growing number of businesses are adopting an ASEAN-wide perspective as they take into account ASEAN’s efforts to form an AEC More businesses view ASEAN economic integration to present more of an opportunity rather than a threat However, it should also be noted that more than half of the businesses still considered only the attractiveness of individual ASEAN country or neighbouring groups of ASEAN countries in planning their investments There is much room to raise the utilization of ASEAN and ASEAN+ FTAs More of the businesses are cautious in their assessment of the probability of ASEAN realizing an AEC by the end of 2015 and local small firms have greater reservations about the potential benefits of ASEAN economic integration Businesses have also highlighted several areas that ASEAN could better Arising from these findings, ASEAN-BAC would like to make the following policy recommendations to ASEAN: (1) ASEAN must ensure that there is timely and effective implementation of measures towards an AEC to realize the potential of economic integration and spur more businesses to adopt an ASEAN strategy (2) ASEAN is strongly urged to intensify its engagement with the business community, by strengthening the process of information dissemination and consultation with businesses on AEC initiatives, which have been consistently rated by respondents in successive waves of this Survey as being among the least satisfactory areas of AEC Blueprint implementation 26 (3) In particular, ASEAN should redouble its efforts to reach out to local small firms – to allay their fear of ASEAN economic integration as a threat to their businesses and alert them to the opportunities from an AEC (4) To increase business utilization of the ASEAN and ASEAN+ FTAs, ASEAN could specifically raise awareness about the existence of these FTAs and make information relating to their utilization more easily and widely available, as the lack of information has been identified as a top constraint to utilization (5) ASEAN should give priority attention to harmonizing, simplifying and enhancing the transparency of rules and regulations in the areas of business registration, investment and customs procedures, as these are the areas highlighted by a greater share of businesses in their qualitative responses (6) ASEAN should step up measures to facilitate the internationalization of local small firms It could so by addressing their financial constraints, enhancing their understanding of overseas markets and improving their capabilities, so that they are enabled to make their first forays into other ASEAN countries through exporting, which requires less resources compared with OFDI This will enable them to participate fully in the AEC and strengthen AEC’s pillar to achieve equitable economic development 27 Appendix Glossary of Terms in the AEC Blueprint Eliminate tariffs: remove import duties eventually on all products with substantial ASEAN value-added and traded among ASEAN countries, with some exceptions Enhance transparency of non-tariff barriers: non-tariff barriers (NTBs) include e.g import licensing requirements and technical regulations Transparency is enhanced by ASEAN member countries abiding with the procedures to submit notifications of NTBs and to set up an effective surveillance mechanism Reform and enhance Rules of Origin: “Rules of Origin” are the criteria used to define where a product was made Simplification of the operational certification procedures include implementing self-certification by exporters that products satisfy the Rules of Origin Simplify, harmonize & standardize customs procedures: measures will include adopting international standards and best practices to secure a uniform system of tariff classification, a synchronized system of value assessment for customs purposes and a harmonized system of origin determination, and the application of information and communication technology (ICT) for digitalized processing and information exchange Such measures will culminate in the creation of the ASEAN Single Window, which is a single point of entry for traders to submit data and information for customs clearance Harmonize standards, technical regulations and conformity assessment procedures: align with international practices where applicable, with greater transparency, improved quality of conformity assessment and active participation of the private sector Increase foreign equity participation in services sectors: allow foreign equity participation by ASEAN-owned or qualified ASEAN-based companies of not less than 70 percent eventually for all services sectors Develop & implement mutual recognition of professional qualifications: identify, develop and implement mutual recognition arrangements for professional services (e.g architectural services, accountancy services, medical and dental practitioners) to facilitate greater mobility of qualified services professionals in the region Protect investors and their investments: to strengthen provisions on investor-state dispute settlement mechanism and treatment of compensation of losses resulting from strife, among others Establish transparent, consistent and predictable investment rules: measures include to harmonize, where possible, investment policies to achieve industrial complementation and economic integration, streamline and simplify procedures for investment applications and approvals and promote dissemination of information on investment rules, policies and procedures Promote joint investment missions that focus on regional clusters and production networks: organize two inbound and two outbound investment missions annually, and 28 promote regional clusters and production network through ASEAN industrial cooperation initiatives Liberalize ASEAN member countries’ investment regimes: to harmonize investment measures to facilitate the movement of investments and progressively reduce/eliminate investment restrictions and impediments to realize free and open investment regime with minimal investment restrictions Develop or enhance national competition policies to create a fair competition environment: to introduce competition policy in all ASEAN member countries and establish a network of competition authorities to discuss and coordinate competition policies Enhance cooperation in regional infrastructure development: to create an efficient, secure and integrated physical infrastructure, transport networks (i.e ground, aviation and maritime), ICT networks and energy grids in ASEAN so as to increase the attractiveness of the region as a single production and investment destination Enhance the competitiveness and dynamism of ASEAN SMEs: to facilitate local SMEs access to information, market, human resource development and skills, finance as well as technology so that they are better equipped to compete globally Endnotes Statistics presented in this paragraph are from the authors’ calculations based on data from United Nations Conference on Trade and Development and the World Bank Gross Domestic Product (GDP) refers to GDP (PPP) at constant 2005 International dollars and excludes Myanmar Statistics on export of services used to determine ASEAN’s total exports and share of world export of goods and services in 2012 excludes Brunei, Laos and Myanmar The report on Findings from 2010 ASEAN-BAC Survey on ASEAN Competitiveness can be downloaded at: http://lkyspp.nus.edu.sg/wp-content/uploads/2013/09/2010_ASEAN_BAC_Survey_Report.pdf The report on Findings from 2011-12 ASEAN-BAC Survey on ASEAN Competitiveness can be downloaded at: http://lkyspp.nus.edu.sg/wp-content/uploads/2013/07/2011-12_ASEAN_BAC_Survey_Report.pdf A qualification applies that differences in responses among the 2013, 2011-12 and 2010 Surveys could also be due to differences in the composition of respondents in the three surveys and might not indicate a change over time The employment size thresholds used here are consistent with the definitions recommended by the European Commission (2003) The firm size classification here is based solely on the number of employees and does not take into account other possible dimensions such as threshold revenue This is according to the definition in the International Monetary Fund’s Balance of Payments and International Investment Position Manual: Sixth Edition (2009) 29 References Aitken, B., Hanson, G.H and Harrison, A.E., “Spillovers, foreign investment, and export behaviour,” Journal of International Economics 43, no 1-2 (1997): 103-132 American Chamber of Commerce (AmCham) in Singapore 2014 ASEAN Business Outlook Survey, Singapore: AmCham, 2013 Andersson, S., Gabrielsson, J and Wictor, I., “International Activities in Small Firms: Examining Factors Influencing the Internationalization and Export Growth of Small Firms,” Canadian Journal of Administrative Sciences 21, no (2004): 22-34 Arndt, C., Buch, C.M and 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micro, small and medium-sized enterprises,” Official Journal of the European Union L124/36 (2003), Brussels: European Commission Fukunaga, Y and Isono, I., “Taking ASEAN+1 FTAs towards the RCEP: A Mapping Study,” ERIA Discussion Paper Series, no 2013-02 (2013), Jakarta: Economic Research Institute for ASEAN and East Asia Hayakawa, K “Impacts of FTA Utilization on Firm Performance.”, In Cause and Consequence of Firms’ FTA Utilization in Asia, edited by Kazunobu Hayakawa, 14-41 Bangkok: Bangkok Research Center, IDE-JETRO, 2012 International Monetary Fund Balance of Payments and International Investment Position Manual, 6th ed., Washington D.C.: International Monetary Fund, 2009 Japan External Trade Organization (JETRO) FY2012 Survey on the International Operations of Japanese Firms – JETRO Overseas Business Survey, Tokyo: JETRO, 2013 Kawai, M and Wignaraja, G “Main Findings and Policy Implications”, In Asia’s Free Trade Agreements: How is Business Responding?, edited by Masahiro Kawai and Ganeshan Wignaraja Cheltenham and Northampton: ADB and ADBI, 2011 30 Kumar, N “Emerging MNCs: Trends, Patterns and Determinants of Outward Investment by Indian Enterprises,” In New Dimensions of Economic Globalization: Surge of Outward Foreign Direct Investment from Asia, edited by Ramkishen S Rajan, Rajiv Kumar and Nicola Virgill Singapore: World Scientific Press, 2008 Nummela, N., Saarenketo, S., Puumalainen, K., “A Global Mindset – A Prerequisite for Successful Internationalization?” Canadian Journal of Administrative Sciences 21, no (2004): 51-64 Rialp, A., Rialp, J and Knight, G.A., “The phenomenon of early internationalizing firms: what we know after a decade (1993-2003) of scientific inquiry?” International Business Review 14, no (2005): 147-166 Ruzzier, M., Hisrich, R.D., Antoncic, B., “SME Internationalization Research: Past, Present, and Future,” Journal of Small Business and Enterprise Development 13, no (2006): 476497 Srinivasan, T.N and Archana, V., “Determinants of Export Decision of Firms,” Economic and Political Weekly 46, no (2011): 49-58 Wignaraja, G., “Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies,” ADBI Working Paper Series, no 361 (2012), Tokyo: Asian Development Bank Institute Zahra, S.A., Neubaum, D.O and Morten, H “The effect of the environment on export performance among telecommunications new ventures,” Entrepreneurship: Theory and Practice 22, no.1 (1997): 25-46 31 Acknowledgement of Participating Organizations The following organizations (in alphabetical order) are grateful acknowledged for their participation in the 2013 ASEAN-BAC Survey on ASEAN Competitiveness: ACLEDA Bank Plc Acorn Marketing & Research Consultants Aewon Brunei Agrotech Vita Co., Ltd Akzonobel Alai Nadhirah hafi'zah Enterprise Alliance Select Food International, Inc Allied Freight Services Pte Ltd Alliedbankers Insurance Corporation Amir Consortium Sdn Bhd An Binh Joint Stock Bank Anis Collection AP (Thailand) Plc APINDO Archibus Solution Centers Vietnam JSC Ariff Azry Transport Services Arka Media Arma Don Enterprise Armada Kemasan Nusantara ARPEC (Alliance of Rice Producers & Exporters of Cambodia) Artha Raya Consultant Aseana Taste Asia Winner Industrial Ltd Athlete's Clinic B.Mobile Communication Sdn Bhd B.U.D Design Studio Co Ltd Bag & Stuff Baml Bao Dang Co Ltd Batik Desaman BCEL Bank Best Western Hotel La Corona Manila Big Hen Farms Bike Terminal Bike360 Blood Donor Network Blue Cross Vietnam Bobi Craft Co Ltd Booz & Company (Malaysia) Sdn Bhd Brainergy International Pte Ltd Brighton Education Group BSM Software Corp BMW Group Creative Printing Enterprises Co., Ltd Credit Suisse AG CV Pandawa Putra Indonesia CV Seratus Empat Belas Dale Mathis Studio Inc Danang Territorial Import-Export Joint Stock Company Dao-Heuang Group Daosavanh Garment Definitely Works Denxinh Lighting Factory Dep Designing Co Ltd DFDL DHL Digital Xpress Vietnam Ltd Dodani Enterprises Co Ltd DOMESCO Medical Import Export Joint Stock Corporation Dong Duong Card Tech Dream World Co., Ltd Ductexcel Co., Ltd DuPont (Thailand) Limited Edelman Indonesia EEI Corporation EMS Components Assembly Inc Enterprise number - Petroleum pipeline and tank construction JSC Export and Import Machinery and Spare Part Faci Asia Pacific Pte Ltd FAME Pharmaceuticals Industry Co., Ltd Farmer Phoyarzar General Services Co., Ltd Fawatthana Finexis FirstPrincipal Financial Pte Ltd Foamtec Freight Links Express Pte Ltd Geo-Chem Far East Pte Ltd Giap Bat Forestry Company Global Integration Business Consultant Global Knowledge Asia Pte Ltd Goldencup Pharmaceutical Co Ltd Green Dot Green Technique JSC Gzul Yusof Collection Hai Vinh Plastic Harbor Star Shipping Services, Inc Healthy Mushrooms, Inc Herbalife Asia Pacific HeroDeli Food Inc Hi-Las Marketing Corp Himlayang Pilipno Inc Hive Brunei Hoa Sen Group Homeaid Depot, Inc Hotel by the Red Canal HTL International Ltd Huong Ly Co Ltd Infinity Global Solutions Co., Ltd Innovative Biotech Pte Ltd Integrated Microelectronics Intercom Co., Ltd Irex Research Co., Ltd Janus Academy P/L Jaroonsing Service Co Ltd Jebsen & Jessen JEP Precision Engineering Pte Ltd Jerseyspal JJ-Pun (S) Pte Ltd Kaba Kyaw Trading Co., Ltd Kanchana Handicrafts Kanmo Retail Group Khampoun Furniture Khit Like Co., Ltd KHL Consult Kinergy Ltd KLW Holdings Ltd La Frutera, Inc Lao Cotton Lao Garment Lao Metai Co., Ltd Lao Telecommunication Enterprise Le & Associates Corporation Lilama Vietnam Loc An Khang Co Lohia Corp Ltd Lwin Meko Trading Co., Ltd Maestro Controls Ltd Magsaysay Maritime Corporation Manulife (Cambodia) Plc Marwa Halal Food Medi-tech Trade Centre Co., Ltd./ Shwepyitagon Co., Ltd Minh Quang Medical Equipment Ltd MUAD-Negros Mun Siong Engineering Ltd Nagawaddy International Co., Ltd Nedcoffee Vietnam Co., Ltd New Peaks JSC Ngwe Sai International Co., Ltd NH Logistics Co., Ltd NISP Design Co., Ltd Norton Precision Engineering Pte Ltd Olive Tree Corpotation Sdn Bhd Ong & Ong Palamy Pharma Co Pelita Emas Event Management Precious Shipping Public Co Ltd President Custom Tailor PT Altermyth PT Dimersia Solusi Prima PT Indievisi Inspirasi PT Indonanco Sukses & Makmur PT Jakarta International Terminal Container PT Jege Internasional PT Laksana Teknik Makmur PT Malindo Kimia PT Nusa Groupindo PT Pendawa Auto PT Pertamina Geothermal Energy PT Radita Hutama Internusa PT Rhea Abadi PT Ridwan Surya Mandiri PT Sarandi Karya Nugraha PT Telunjuk Komputasi Indonesia (Telunjuk.com) PT Uniteda Arkato PT Yuasafood Berkah Makmur Qian Hu Corporation Ltd RAB Global Green Sdn Bhd Rayan's Bikeshope Retail Business Solutions Co Ltd RHB Bank Ridah Handicraft Saigon Consultant and Trade Promotion JSC Saigon Fuel Joint Stock Company - SFC Saigon General Services Corporation - Savico Saigontel Sandy Valley Trading Co., Ltd Santei Lao, Santics Lao Sathapana Limited SBI Royal Securities Plc SC (Sang Choy) International Pte Ltd SCG Paper Plc School of Thought Seabornes & 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Plant Yaung Sin Linn Travels & Tours YCH Group Zack Hardie Zafco Jaya Real Estate Sdn Bhd The contribution of other organizations which had chosen to remain anonymous is also gratefully acknowledged [...]... services used to determine ASEAN s total exports and share of world export of goods and services in 2012 excludes Brunei, Laos and Myanmar 2 The report on Findings from 2010 ASEAN- BAC Survey on ASEAN Competitiveness can be downloaded at: http://lkyspp.nus.edu.sg/wp-content/uploads/2013/09/2010 _ASEAN_ BAC _Survey_ Report.pdf 3 The report on Findings from 2011-12 ASEAN- BAC Survey on ASEAN Competitiveness can be... Organization’s consideration of ASEAN s investment attractiveness as a whole in planning investments in ASEAN countries (% of Respondents) Source: Authors’ calculations based on survey data 14 Knowledge of ASEAN policy initiatives and use of ASEAN Free Trade Agreements Familiarity with ASEAN policy initiatives Respondents were asked about their familiarity with the details of ASEAN policy initiatives that... an ASEAN company.” “We have formed a very strong and large regional team, which specializes in ASEAN, who are best able to… guide our businesses when AEC is formed.” “Overall, it is realigning plans and strategies with an ASEAN focus.” The rising significance of an ASEAN strategy was also observed in other studies, which have recently started surveying businesses on similar questions The AmCham Survey. .. 2011-12 Survey and reflected investors’ sustained or increased interest in almost all ASEAN countries except Thailand and Vietnam Myanmar notably increased its share of investor interest as a top prospective investment destination from 2 percent in the 2011-12 Survey to 12 percent in the 2013 Survey The growing interest in Myanmar is also corroborated by findings in the 2014 ASEAN Business Outlook Survey. .. Agreements (‘FTAs’) concluded by ASEAN, namely, AFTA, ASEAN- Australia-New Zealand Free Trade Agreement (AANZFTA), ASEAN- China Free Trade Agreement (ACFTA), ASEAN- India Free Trade Agreement (AIFTA), ASEAN- Japan Comprehensive Economic Partnership (AJCEP) and ASEAN- Korea Free Trade Agreement (AKFTA) This was up from 29 percent and 22 percent in the 2011-12 and 2010 Survey respectively Factoring in plans to use... provisions in ASEAN and ASEAN+ FTAs (% of Respondents) Source: Authors’ calculations based on survey data Table 1 presents several characteristics of the users and non-users of ASEAN and ASEAN+ FTAs By firm size, the share of users among large firms was the highest (42 percent), compared with those among small firms (28 percent) and medium-sized firms (32 percent) This shows that the pattern of usage of ASEAN. .. of preferential provisions in ASEAN and ASEAN+ FTAs (% of Respondents) Note: Each respondent was allowed to select multiple responses Percentages do not sum up to 100% Source: Authors’ calculations based on survey data Business perceptions of ASEAN economic integration Current extent of ASEAN economic integration Half of the businesses perceived the current extent of ASEAN economic integration in terms... initiatives had been among the least satisfactory areas rated by businesses across the three waves of this Survey This is consistent with the findings in the Surveys on ASEAN Community Building Effort 2012 conducted by the ASEAN Secretariat (2013), where businesses across ASEAN countries held the view that ASEAN could do more in organizing promotional activities to garner interests and raise awareness through... policy areas (Ratings) Source: Authors’ calculations based on survey data Policies to increase business competitiveness for trade and investments in ASEAN In order to explore further how government policy measures could increase the competitiveness of businesses to participate in trade and investment activities in the ASEAN region, this Survey obtained qualitative responses from businesses to two questions... recommendations The 2013 ASEAN- BAC Survey on ASEAN Competitiveness collated responses from businesses across all ten ASEAN countries, comprising a mix of small, medium and large firms More than 70 percent of businesses in the sample were local firms (with zero or at most 10 percent foreign equity ownership) Thus, the findings could be considered to reflect more of the views of local ASEAN businesses Of ... 2013 ASEAN- BAC Survey on ASEAN Competitiveness, Jakarta: ASEAN Business Advisory Council A copy of this report can be downloaded at: lkyspp.nus.edu.sg/2013 -ASEAN- BAC -Survey- Report or www .asean- bac.org...  ASEAN Business Advisory Council 2013 The ASEAN- BAC Survey on ASEAN Competitiveness is conducted by the ASEAN Business Advisory Council (ASEANBAC) in collaboration with... http://lkyspp.nus.edu.sg/wp-content/uploads/2013/09/2010 _ASEAN_ BAC _Survey_ Report.pdf The report on Findings from 2011-12 ASEAN- BAC Survey on ASEAN Competitiveness can be downloaded at: http://lkyspp.nus.edu.sg/wp-content/uploads/2013/07/2011-12 _ASEAN_ BAC _Survey_ Report.pdf