The ASEAN Economic Community fosters great hopes for many businesses, especially multinational corporations – MNCs – that are well-positioned to benefit from it. Gathering reviews from several MNCs’ leaders across Southeast Asia, this report provides hands-on, regional insights accross several industries.
Large business approach on the AEC
ASEAN countries have been coming closer for decades, but the creation of the ASEAN Economic Community on 31 December 2015 marks a significant milestone in the ASEAN economic integration. Despite significant remaining obstacles, the advantages of the ASEAN Economic Community – AEC – will allow businesses to integrate regionally much further.
In this report, KPMG and Silk Road Associates have gathered numerous testimonies from ASEAN MNCs top executives across Southeast Asia to present interesting ideas from industry leaders. They relate how their respective businesses and industries expect to benefit from the AEC but also provide interesting tips to tackle the remaining hurdles of the integration.
Summarizing key facts and figures on ASEAN and its member countries, the report highlights the strategies for business in ASEAN used in different verticals (energy, trade, logistics, technology…), difficulties and opportunities faced by global and local businesses as it draws on interviews from:
- Mark Gainsborough – Executive Vice President, Global Commercial at Shell
- Steve Lanctot – Regional Manager, ASEAN and India of Caterpillar
- Wayne England – Chairman & CEO of Nestlé Indochina
- Max Bittner – CEO of Lazada Group
- Sandeep Bhargava – General Manager, Southeast Asia and Taiwan, at HP Enterprise Services
- Yasmin Aladad Khan – Regional Director of Southeast Asia and South Asia for DHL Express
- George Foo – COO of Artesyn Embedded Technologies
- Mark Barnes – Global head of high growth markets at KPMG US
- Geoff Wilson – COO of KPMG Asia Pacific
This report also presents synthesizing comments on the ASEAN Economic Community focusing on the opportunities presented by the AEC integration, its practical implications and remaining challenges, opportunities for local businesses, taxation and regulations, strategic corridors and the weight of China on ASEAN.
MNCs in Southeast Asia – report summary
- Foreword – page 3
- Introduction – page 5
- The New ASEAN Opportunity – page 7
- Point of View: Shell – page 11
- The AEC and its Practical Implications – page 13
- Point of View: Caterpillar – page 17
- The Region’s New Champions – page 19
- Point of View: Nestlé Indochina – page 23
- Point of View: Lazada Group – page 25
- ASEAN’s Changing Taxation and Regulatory Climate – page 27
- Point of View: HP – page 31
- Strategic Corridors – page 33
- Point of View: DHL Express – page 35
- China’s Commercial Shadow Looms Large – page 37
- Point of View: Artesyn Embedded Technologies – page 41
- Looking Forward – page 43
Report from 2015 by KPMG and Silk Road Associates