ASEAN Advances Regional Integration Process

From October 9th to 11th, the 44th and 45th ASEAN Summits and related meetings were held in Vientiane, the capital of Laos. The theme of the summit was "ASEAN: Strengthening Connectivity and Resilienc...

From October 9th to 11th, the 44th and 45th ASEAN Summits and related meetings were held in Vientiane, the capital of Laos. The theme of the summit was "ASEAN: Strengthening Connectivity and Resilience." Participants discussed in depth around the three pillars of the ASEAN Political-Security Community, Economic Community, and Socio-Cultural Community, on issues such as regional economic integration, interconnectivity, digital economy, and green development, and reviewed and adopted more than 90 outcome documents.

Jointly Maintain Regional Unity and Peaceful Stability

In his opening remarks, Thongloun Sisoulith, the President of Laos and the rotating chair of ASEAN, said that the achievements made by ASEAN over the years have brought tangible benefits to the people of the region, reflecting the common aspirations, determination, unity, and diversity of the region. These achievements further demonstrate that guiding regional cooperation with the "ASEAN way" is in line with the development trends of the Southeast Asian region. The current international and regional situations are undergoing rapid and complex changes, facing multiple challenges. Against this backdrop, ASEAN should continue to adhere to the common goals of peace, stability, and sustainable development, and uphold multilateralism based on equality and mutual benefit.

The summit reviewed the implementation of the "ASEAN Community Vision 2025" and the progress in building the ASEAN Community. At a press conference held after the closing of the summit, Prime Minister Sonexay Siphandone of Laos said that the "ASEAN Community Vision 2025" will lay a solid foundation for formulating the "ASEAN Community Vision 2045." Our goal is to build a resilient, innovative, dynamic, and people-oriented ASEAN Community by 2045.

"ASEAN can only maintain peace and stability through constructive cooperation," said Thai Prime Minister Prayuth Chan-o-cha, adding that Thailand will work closely with all ASEAN member states to maintain regional peace and stability and enhance the region's status as a responsible global participant.

Malaysian Prime Minister Anwar Ibrahim said that in the context of escalating global tensions, ASEAN must courageously send a clear signal of unity to the world. He called on the ten ASEAN countries to strengthen regional cooperation to avoid internal conflicts and divisions.

Vietnamese Foreign Minister Bui Thanh Son expressed his expectation that ASEAN countries will further build consensus and maintain coordination and balance in external relations and issues affecting regional peace.

Participants also unanimously agreed to accelerate the process of admitting Timor-Leste as the eleventh member of ASEAN. In 2022, Timor-Leste was granted observer status at the ASEAN Summit held in Phnom Penh, Cambodia.

Practical cooperation in various fields continues to deepen

The "ASEAN Investment Report 2024: ASEAN Economic Community 2025 and Foreign Direct Investment" was released during the ASEAN Business and Investment Summit. The report shows that in 2023, ASEAN attracted a record $230 billion in foreign direct investment, with ASEAN's share of global foreign direct investment rising to 17%, a significant increase from the 6% average between 2006 and 2015. The report is optimistic about the investment prospects of ASEAN, believing that ASEAN has the potential to attract more investment in emerging industries related to sustainable development, such as infrastructure, digital economy, electric vehicle supply chains, renewable energy, etc. ASEAN Secretary-General Dato Lim Jock Hoi said that with the accelerated economic integration of member states and the conclusion of free trade agreements with more external partners, ASEAN is expected to attract more foreign direct investment.In recent years, regional countries have been increasingly integrated in areas such as interconnectivity, digital economy, and green and low-carbon development, with growing economic and personnel exchanges. During the summit, Indonesia's Minister of Economic Affairs, Airlangga Hartarto, called on ASEAN economic ministers to pay attention to the progress of the negotiations on the ASEAN Digital Economy Framework Agreement and to complete the negotiation goals on schedule. The agreement, one of the main achievements during Indonesia's tenure as ASEAN's rotating chair in 2023, includes ASEAN digital talent, digital identity, cybersecurity, retraining, infrastructure, and interoperability, which will help ASEAN become a center for economic growth. ASEAN aims to complete the negotiations on the ASEAN Digital Economy Framework Agreement by 2025.

In July this year, Siam Commercial Bank of Thailand launched a cross-border QR code payment service for Thai tourists traveling to Laos through its independently developed application, allowing users to directly scan the QR codes of Laotian merchants for payment. Last year, the State Bank of Vietnam signed a memorandum of understanding on regional payment interconnectivity with central banks of Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The six central banks unanimously agreed to promote interconnectivity of payments within the region based on QR codes, instant payments, and other payment methods, and to establish a robust risk management mechanism in accordance with the legal frameworks of member countries. This year, Laos and Brunei joined the initiative, further enhancing the convenience of mobile payments within the ASEAN region.

In the field of interconnectivity, Malaysia launched a freight special line "ASEAN Express" connecting Malaysia, Thailand, Laos, and China in June this year, further strengthening regional logistics connectivity and cargo exchanges between ASEAN and China. In July, the cross-border railway passenger train connecting Thailand and Laos officially commenced operations. The opening of this line not only improves the convenience of railway transportation between Thailand and Laos but also connects with the China-Laos railway, promoting trade, logistics, and personnel exchanges between Thailand, Laos, and China.

Cambodian Prime Minister Hun Sen said during the summit that ASEAN needs to unite and fully explore the potential of emerging industries such as the digital economy, green transformation, blue economy, and resilient supply chains to promote strong and sustainable growth, and continue to contribute to global development and prosperity.

Looking forward to further strengthening international cooperation, ASEAN held meetings with dialogue partners such as China, South Korea, and Japan during the summit, reviewed the cooperation achievements of the past few years, and agreed to further strengthen cooperation in various fields.

At the China-ASEAN (10+1) leaders' meeting, participating countries unanimously agreed to continue deepening cooperation in trade, investment, agriculture, interconnectivity, climate change response, and to expand cooperation in emerging fields such as artificial intelligence, digital economy, and green economy. The meeting adopted the Joint Statement on the Substantive Conclusion of the Negotiations on the China-ASEAN Free Trade Area 3.0, and participating ASEAN countries expressed their willingness to take this opportunity to strengthen the alignment with the "Belt and Road" initiative, continue to promote regional economic integration, build a closer ASEAN-China community with a shared future, and contribute to maintaining regional peace, stability, and prosperity.

Singapore's Prime Minister, Heng Swee Keat, said at the summit: "Upgrading the free trade agreement is an important move, especially in an era when global protectionism is on the rise." He stated that the China-ASEAN Free Trade Area is the first free trade area negotiated by ASEAN as a whole with external parties, effectively promoting trade exchanges between the two sides, making them each other's largest trading partners since 2020.

Since 2008, China has been ASEAN's largest trading partner for 15 consecutive years, and ASEAN has been China's largest trading partner for three consecutive years since 2020. "China and ASEAN countries have made commitments in new areas such as the digital economy, green economy, supply chain interconnectivity, competition and consumer protection, and micro, small, and medium-sized enterprises, which will provide institutional guarantees for the joint construction of a super large-scale market," said Tang Zhimin, Director of the China-ASEAN Research Center at the Sino-Thai Management Institute in Thailand.

In addition, the 27th ASEAN Plus Three (APT) Summit passed the Statement of ASEAN and APT Leaders on Strengthening Regional Supply Chain Interconnectivity; at the 14th ASEAN-United Nations Summit, both sides agreed to further strengthen the alignment of the "ASEAN Community Vision 2025" and the "ASEAN Community Vision 2045" with the United Nations 2030 Agenda for Sustainable Development.