Steady progress has been made in building the ASEAN Economic Community
The ASEAN Secretariat recently released the 13th ASEAN Economic Integration Circular, which introduces the latest progress of the building of the ASEAN Economic Community as follows:
Despite the many challenges, ASEAN continued to make steady progress in the implementation of the ASEAN Economic Community Blueprint 2025 in the first half of this year, especially in the areas of digital transformation, sustainable economic development, and deepening regional and global market integration.
Digital transformation. Asean has placed digital transformation on its priority agenda and achieved results in e-commerce, paperless trade, digital payments, cybersecurity and other areas: First, significant progress has been made in the implementation of the Bandar Seri Begawan Digital Transformation Roadmap. Second, accelerate the expansion of the ASEAN Customs Declaration Document (ACDD) system to facilitate the exchange of export declaration information among member countries. At present, eight countries have joined the ACDD real-time operating platform, and the remaining two countries will adopt it fully within the year. Third, accelerate the completion of the ASEAN Framework Agreement on Digital Economy (DEFA), with the goal of completing the framework within this year and completing the substantive modules of the agreement by 2025. The fourth is the development of a Framework for Promoting the Growth of digital start-up Ecosystems, whereby member States can develop national policies based on practice to promote the development of digital start-up ecosystems. Fifth, an "AI Governance and Ethics Guide" is being developed, which will provide reference and guidance for enterprises in the region. Six QR code payment links have been established between Cambodia, Indonesia, Malaysia, Singapore, Thailand and Vietnam, which will facilitate regional payment connectivity and simplify retail payments.
Sustainable economic development. First, the 42nd ASEAN Summit issued the ASEAN Leaders' Declaration on the Development of a Regional Electric Vehicle Ecosystem, further demonstrating the region's commitment to supporting the use of electric vehicles and making ASEAN a global production hub for the electric vehicle industry. The second is the release of the Sustainable Tourism Development Framework in the Post-COVID-19 Era to guide the sustainable tourism development agenda in the region, strengthen relationships with local communities, tourists and other stakeholders, and enhance ASEAN's reputation and brand. Third, the Sustainable Investment Report is published to help member states implement the sustainable investment component of the ASEAN Comprehensive Recovery Framework by providing indicators for assessing the sustainability impact of FDI, benchmarking investment policy reforms and investment promotion plans, as well as recommendations for responsible business practices and policy initiatives to promote green investment. Fourth, formulate the Circular Economy Framework Implementation Plan and corresponding work plans, and ASEAN is continuing to publicize relevant initiatives to relevant departments, institutions and stakeholders. Fifth, adopt and advance the development of a Carbon Neutral Strategy concept paper to provide a systematic, orderly and inclusive pathway for ASEAN to achieve carbon neutrality in the coming years, building on existing initiatives and identifying common areas that can accelerate the region's transition to carbon neutrality and sustainable development. Sixth is the publication of the Sustainable Finance Classification Scheme (Version 2), which further sets out guiding questions, decision-making systems and examples that address all environmental objectives and underlying criteria, allowing member States to apply the framework to begin their sustainable development process immediately in a consistent and structured manner.
Deepen regional market integration and foreign economic relations. Asean continues to play a central role in shaping the evolving regional economic architecture, strengthening its commitment to multilateralism and promoting economic integration. The region remains committed to maintaining strong, open and competitive markets as drivers of post-pandemic and future economic recovery by upgrading existing free trade agreements and facilitating necessary trade and investment transactions. First, negotiations on upgrading the China-Asean Free Trade Area were launched, and the rules of procedure, work plan and negotiation outline were adopted in February 2023. Second, the Philippines deposited the instrument of ratification of the Regional Comprehensive Economic Partnership (RCEP), marking the completion of the ratification process for all RCEP members. Third, the ratification process of the ASEAN Trade in Services Agreement (ATISA) is being implemented and the corresponding implementation work plan has been completed.