ASEAN & Vietnam

With a population of nearly 600 million people, ASEAN can provide a counterpoint to the rise of China and India, which have a population of 1.3 and 1.1 billion people respectively. The 10- member grouping of ASEAN community combined for the 5th largest economy in the world with GDP of $3.2 trillion, and a market cap of more than $1.2 trillion. In an effort to strengthen regional integration the ASEAN Charter is expected to be ratified before the next Summit in Thailand this December. However, Indoenisa, Phillipines and Thailand have yet to ratify the Charter, citing that the Charter fails to address the issue of human rights and democracy. The Charter which aims to turn ASEAN into a legal entity and a unified community.

In a postive direction, six members of the Association of Southeast Asian Nations (ASEAN) have agreed to set up a common board to trade selected blue-chip stocks listed on their exchanges. The plan was approved at the fifth Asean Exchanges CEOs Meeting held in Vietnam last March. Indonesia, Malaysia, Philippine, Singapore, Thailand and Vietnam agreed that each would select 30 companies to be listed on ASEAN Board. The new board is expected to strengthen ASEAN capital markets and enhance its visibility. It will also help attract more international funds into the region, and more importantly making its way toward a common currency. The unified ASEAN stock market is likely to begin trading in July of 2009. A well integrated economic community of ASEAN will give it bargaining power in a globalized world. A strengthened security community will promote peace and political balance in the region. The goal of ASEAN is to emulate the EU model in community building for mutual benefits and development.