Asean

Redazione published in Asean, Global Lens

Italy and ASEAN, Partnership growing stronger

At the Farnesina, a new high-level meeting with the leadership of the bloc of Southeast Asian countries

Editorial by Maria Tripodi, Undersecretary of State for Foreign Affairs and International Cooperation

On December 7, I received the Deputy Secretary General of ASEAN, Michael Tene, at the Farnesina. The meeting was part of our country's ongoing collaboration with ASEAN to implement the Development Partnership launched in late 2020. In a little more than three years, our Partnership with ASEAN has achieved significant results, enabling the implementation of multiple training initiatives for the benefit of Southeast Asian countries in a wide range of strategic areas: from security to the environment, and from the protection of cultural heritage to sustainable development. With Deputy Secretary General Tene, I renewed our common commitment to enriching the Partnership with new projects-many of which are already under negotiation with the Secretariat and member states-with a shared mode of ownership and in areas of common interest. These include many fields that are essential for the stability and security of states in contemporary reality: cybercrime, combating transnational crime, promoting legality, space, food security, energy transition, and prevention and management of natural disasters. This is in the knowledge that only together can the growing threats to peace, the protection of the rules-based international order, and sustainable development, which are also fueled by the multiplication of crisis theaters around the world, be effectively addressed. Indeed, ASEAN represents a model of regional integration in a key geo-strategic position for maintaining peace and shared prosperity in the Indo-Pacific. In this context, Italy stands ready to collaborate with the incoming Laotian Chairmanship of ASEAN, focusing on the issues of connectivity and resilience, with the hope that the country can build on the important achievements of the current Indonesian Chairmanship, especially in the areas of regional integration and investment. We trust that Laos will also ensure continuity in Indonesia's efforts to manage the serious crisis that has plagued Myanmar for nearly three years, following the February 1, 2021 coup d'état, with possible repercussions for stability in the area.

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Redazione published in Asean, Economy and trade

ASEAN and the strategic advantage of rare earths

Southeast Asia is rich in components needed for the energy transition, including nickel, copper, and tin. International attention to the sector is growing

By Tommaso Magrini

Not just China. Southeast Asia also has a major strategic advantage on its side: the possession of a large amount of rare earth and mineral resources. These are necessary components for the global energy transition, including nickel, copper and tin, but the ASEAN area has high potential to produce more. Not only that. The rare earths in which the area is rich are also crucial for the production of batteries for electric vehicles, one of the most sensitive areas of contention in the near future.

Just think of one figure. In 2022, Indonesia's mines produced about 1.6 million tons of nickel. This figure makes the vast Southeast Asian archipelago the leading producer of nickel from mines around the world. So much so that those resources are particularly coveted by major powers such as China and the United States, which as evidenced by President Joko Widodo's recent reception at the White House are trying to reach a mining agreement.

Chinese companies are estimated to have invested something like $30 billion in Indonesia's nickel supply chain. All within a decade. On the Indonesian islands of Sulawesi and Halmahera, Beijing companies have built refineries, smelters, a new metallurgy school and even a nickel museum. A diversification of the source of investment would be functional for Jakarta, and the United States has decided to shorten the distance, but some say it may already be too late.

In an effort to increase investment in the mining sector, ASEAN mining ministers adopted an Action Plan for ASEAN Mining Cooperation for 2021-2025 (AMCAP-III) in October 2021. The goal is to "create a vibrant and competitive ASEAN mining sector for the welfare of ASEAN peoples." The AMCAP-III sets out how the ten ASEAN countries will work together to build sustainable mining development, mining investment promotion, and human and institutional capacity. AMCAP-III was implemented in recognition of the critical role of minerals of all types in ASEAN economies and sustainable development, as well as in stimulating and enhancing trade integration in ASEAN.

As a report by the Lowy Institute explains, Australia is also particularly interested in deepening relations on the subject with Southeast Asia. A new program, Australia ASEAN Futures Initiative, whose first subprogram is "Economic and Connectivity (ECON)," was launched in mid-2022. Australian companies are the largest investor in mineral exploration in Southeast Asia and the Pacific. In 2022, ASX-listed companies spent about $100 million on mineral exploration, accounting for 28 percent of all exploration investment in the region. In Southeast Asia alone, Australian companies have identified $220 billion worth of mineral reserves and invested $2.6 billion worth of capital in mining, according to an analysis based on S&P Global's mining database.

In addition to long-standing ASEAN development initiatives, Australia is implementing economic development cooperation commitments with Indonesia and other Southeast Asian countries under two trade and investment agreements. Both the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and the Regional Comprehensive Economic Partnership (RCEP) contain entire chapters on "economic cooperation" to help build capacity for trade and investment.

Meanwhile, Canada, Germany, Japan, Korea, the United States and China are already assisting ASEAN and its member states in implementing the Minerals Action Plan and Information System, as well as building critical minerals supply chains. For Southeast Asia, an opportunity to capitalize on an important strategic advantage.

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Redazione published in Asean, Economy and trade

No decoupling between Southeast and China

Despite political tensions, no one wants to do without trade relations with Beijing

By Tommaso Magrini

A new survey released by HSBC showed that nearly half, 45 percent to be precise, of Southeast Asian companies plan to expand their supply chain to China in the next 12 months. Ninety-two percent of Indonesian companies expressed interest in expanding their supplier network in China in the next three years, a figure slightly higher than 89 percent of Vietnamese companies and 87 percent of Philippine companies. 

The survey results were released in conjunction with the China International Import Expo (CIIE) in Shanghai, which was attended by large delegations from Southeast Asian countries but also the largest U.S. shipment since the event's launch. This sixth edition of the survey was the first to be conducted since the lifting of Covid-19 restrictions in China in January this year, with the participation of more than 3,300 companies from 16 countries including the United States, South Korea, Canada, the United Kingdom, France and Germany. Overall, about three-quarters (73 percent) of respondents expect to increase their supply chain footprint in China in the next three years, and about 25 percent indicate that the increase will be "significant." HSBC said the survey results suggest that many of China's long-standing fundamentals, including its deeply integrated supply chain networks, continue to attract international companies. China's imports and exports to ASEAN reached 6.52 trillion yuan ($970 billion) in 2022, a significant 15 percent increase. Of these, exports accounted for 3.79 trillion yuan, an increase of 21.7 percent, and imports 2.73 trillion yuan, an increase of 6.8 percent. The data show that China's cumulative investment in South Asia reached nearly $15 billion.

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Tullio Ambrosone published in Asean, Global Lens

EU and ASEAN: navigating the turbulence between the US and China

In the new international context marked by the confrontation between the USA and China, ASEAN and the EU can play a crucial role in avoiding conflict and promoting global cooperation

The current international landscape is heavily influenced by the growing competition between the US and China. This rivalry extends beyond trade and economics into areas of technology, military prowess, and geopolitical influence.

The recent summit in California showcased the deep-rooted and complex nature of US-China relations. Presidents Xi and Biden, representing the world's two largest economies, engaged in extensive discussions on a range of contentious issues. However, the summit concluded with several key disputes unresolved, highlighting the persistent friction between the two nations especially on trade and geopolitical issues, with reference to the situation in Taiwan and in the South China Sea.

The rivalry between the US and China occurs against a backdrop of global instability marked by conflicts like the war in Ukraine and in the Middle East. This environment has led to a decline in international trust and cooperation, raising concerns about a potential return to Cold War-era bloc politics. Such a division into spheres of influence would be detrimental, particularly for the EU and ASEAN, which have thrived in a more open and cooperative international system.

The EU and ASEAN, with significant differences in terms of history and socio-political context, share a core objective: promoting regional market integration to achieve peace, stability, and prosperity. However, the integrative model they champion is now under threat from global tensions that challenge the integrity of common markets and the cohesion of the development model of these organizations. The ongoing US-China trade war, marked by the imposition of tariffs and trade barriers, serves as a prime example of how external geopolitical tensions can significantly disrupt internal market dynamics within the EU and ASEAN. 

Despite the grim outlook, there are substantial opportunities for both the EU and ASEAN in the current geopolitical climate. Both the EU and ASEAN possess significant market attractiveness that can be leveraged to influence the US-China dynamic. The EU, with its GDP of over $15 trillion and a population of about 450 million (with an enlargement in sight), represents one of the largest single markets in the world. On the other hand, ASEAN, with a combined GDP of approximately $3 trillion and a population exceeding 650 million (of which around 60% is under 35), is one of the fastest-growing regions globally. These economic conditions position both the EU and ASEAN uniquely to mediate and potentially influence the strategic decisions of the US and China, especially in areas of trade policy and regional security.

The EU and ASEAN can play a crucial role in developing a more stable multipolar world order, moving away from bipolar tensions. This involves not only strengthening their internal cohesion but also enhancing inter-regional cooperation. By consolidating their relations and by investing in market integration, these blocs can assert a more balanced and influential role in international affairs.

Joint diplomatic and trade initiatives between the EU and ASEAN can be pivotal in balancing the influence of the US and China, focusing primarily on enhancing trade and economic integration. The EU and ASEAN should start working on a comprehensive trade framework with the aim of reducing tariffs and regulatory barriers. Such an agreement, extended to encompass the entire ASEAN region, would create one of the world's largest free trade areas, diversifying trade relations and reducing overreliance on the US and China. Establishing joint standards in areas like product safety, intellectual property, and sustainable trade practices could be strategically very useful. This would not only align the EU and ASEAN markets more closely but also set an example for global trade standards, independent of the US and China's influence, and enhance their collective bargaining power and strategic position in the global market.

In conclusion, the EU and ASEAN are at a pivotal point in the evolving global landscape, marked by the US-China rivalry and broader international tensions. While they face significant challenges, these regional blocs also possess unique opportunities to influence the global order. By leveraging their economic strength, advocating for a multipolar world, and enhancing inter-regional cooperation, the EU and ASEAN can play a vital role in fostering a more balanced and peaceful international system. Their actions and decisions in the coming years will be crucial in shaping the trajectory of global politics and in ensuring the stability and prosperity of their respective regions.

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Pierfrancesco Mattiolo published in Asean, Economy and trade

The ASEAN bets on the blue economy

ASEAN members have recently adopted the Blue Economy Framework to coordinate the sustainable exploitation of marine resources. The sea is a vital resource, but it rests on a delicate balance. Environmental... and political.

The sea plays an essential role in the history of Southeast Asia. Fishing and maritime trade have been key activities in the regional economy for centuries. All ASEAN countries, except Laos, have coastlines. People, goods, and ideas circulating by ship have made the region much more than a mere geographical expression, creating cultural and political ties among its countries. In recent decades, in addition to unprecedented growth in maritime trade, new forms of economic use of the sea have emerged – tourism, but also the extraction of resources such as oil and natural gas. At the same time, due to climate change and rising sea levels, the sea has also become a threat. Densely populated areas and cities like Jakarta are at risk of being submerged in the coming decades, with immense social and economic costs. Not surprisingly, the Indonesian government pushed for the approval of the Blue Economy Framework during its ASEAN presidency with the aim of making the use of marine resources more sustainable and effective. 

But what is the blue economy? The World Bank defines it as ‘sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, and ocean ecosystem health’. The concept of ‘sustainability’ must be understood in a tripartite manner, uniting economic, social, and environmental sustainability. In practical terms, the blue economy model urges governments to design their policies in an integrated manner, acting on different economic sectors. For example, the ASEAN Framework includes interventions to achieve carbon neutrality in maritime activities, improve disaster response capabilities, promote the development of new technologies for the involved sectors, facilitate cooperation and coordination between national governments to monitor resource consumption. Initiatives to reduce waste pollution and develop sustainable tourism related to the landscape heritage are also included. 

One of the main innovations of the Framework is the inclusion of inland water resources, namely rivers, lakes, and artificial reservoirs. After all, the region is crossed by large rivers – such as the Mekong, the Irrawaddy, and the Chao Phraya – which have shaped its history and continue to support the lives of millions of people. In light of this innovation, the blue economy is also useful for a landlocked state like Laos. Another point of interest is that the ASEAN is the second bloc of countries, after the European Union, to begin coordinating its policies toward aquatic resources above the national level. Cooperation in this field is necessary, as the choices of individual states have a limited impact on the health of the oceans. Negotiating at the multilateral level is more complicated, as demonstrated by the World Trade Organization (WTO) agreement on fishing subsidies that lead to the depletion of fishery. Reaching an agreement among so many countries, with very different interests, required difficult negotiations and 21 years of talks – the time between the fourth WTO Ministerial Conference in Doha in 2001 and the twelfth held in Geneva in 2022, where the agreement was concluded.

Reaching an agreement among ASEAN members may be easier, but it can still be challenging to implement. First of all, the Framework is not binding and establishes broad strategies that will then need to be implemented in numerous regional and national policies. These policies require know-how, administrative resources, and agreement among various interest groups. ASEAN states already have a good network of international cooperation from which they can receive support in defining and implement such policies: the EU could be an essential partner, as it is the international actor most similar to the ASEAN and has already developed its approach to the blue economy. Furthermore, states that share the same sea must respect the interests and sovereignty of their neighbors. A delicate issue for ASEAN members facing the South China Sea, whose waters are also claimed by China and Taiwan. Not surprisingly, the Framework emphasizes with persistence that the UNCLOS, the United Nations Convention on the Law of the Sea establishing the boundaries of territorial waters, constitutes one of its essential legal bases. To cooperate in the protection of the seas, ASEAN states must first set aside any residual rivalries over their control.

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Sibeles Chiari published in Asean, Global Lens

Climate Finance: the COP28 as seen by ASEAN

In an effort to respond to regional needs, the 10 members of the Organization are currently developing the ASEAN Climate Finance Access and Mobilization Strategy, a tool designed to harmonize the use of frameworks and structures for monitoring financial flows

By Sibeles Chiari

With less than a month to go before COP28 in Dubai, expectations are rising about reaching a transformative agreement that will move humanity away from catastrophic scenarios. Significantly alarming is the situation in the Southeast Asian region, home to as many as 6 of the 20 states identified as most vulnerable to the impacts of climate change: the Philippines, Indonesia, Malaysia, Myanmar, Thailand and Vietnam. Concerns based on forecasts heralding greater economic losses than anywhere else in the world, with an estimated 11 percent decline in GDP by 2100. In fact, only with copious increases in climate finance and a concerted effort by governments, investors, central banks and financial regulators will economic and human losses be limited. An effort that, globally, will need to generate some $2.4 trillion in total annual investment by 2030 to succeed in sustaining emerging markets. Indeed, at the Dubai summit, climate finance will be at the center of the policy debate because, mobilizing financial resources and activating innovative financing mechanisms (e.g., Loss and Damage fund) will play a key role in combating climate change and accelerating toward a more sustainable economy. That being said, it is not surprising that the dynamics related to the climate finance discipline will have an increasing impact on the performance of the Association of Southeast Asian Nations (ASEAN) economies.

Throughout the various UNFCCC COPs, ASEAN nations have continually urged the more industrialized countries to meet their 2009 commitment to provide $100 billion per year to developing countries by 2020. A commitment that has been more verbal than real, considering that between 2000 and 2019, ASEAN countries received $56 billion from developed countries. While European states such as Germany and France have contributed 11.8 percent and 8.4 percent, respectively, of total bilateral climate funding to the region, Japan has allocated as much as 65 percent. Indeed, the influence of the Japanese country, which jointly launched the SPACE program with ASEAN members to combat climate change, pollution and biodiversity loss, stands out. Additional climate funding also comes from China, which ranks as the main provider of South-South flows, followed by India. As well as from ASEAN countries themselves with their contributions to the mobilization of Green Climate Fund (GCF) resources. Of course, in the context of climate finance, there is no shortage of substantial support from the World Bank and the Asian Development Bank (AIB), as the largest multilateral provider of climate finance to the region.

Over the past decade, more than half of all climate finance provided to the region has gone to the transportation and storage (32 percent), energy (26 percent) and agriculture, forestry and fisheries (9 percent) sectors. It is also worth highlighting the high growth recorded in other sectors, such as health (+427 percent), business and various services (+336 percent) and emergency response (+218 percent). Looking at the ASEAN space, Indonesia, the Philippines, and Vietnam received the highest share of funding, and indeed, most of the funds went to the transport, energy, and agriculture sectors. For example: Vietnam has attracted significant investment in wind and solar power; Indonesia has received funding and international support for initiatives to combat deforestation and promote reforestation through the REDD+ program; as well as the recently concluded loan agreements between the Philippines and the World Bank worth $876 million to finance three sustainable agriculture projects (MIADP, FISHCORE and PRDP). With data in hand, Asia receives the highest share of climate finance among all regions of the world. No doubt this is a figure that inspires optimism, although the per capita share of Southeast Asian countries remains the lowest. Finally, in an effort to address regional needs, the 10 members of the Organization are currently developing the ASEAN Climate Finance Access and Mobilization Strategy, a tool aimed at harmonizing the use of frameworks and structures for monitoring financial flows. Therefore, this strategy will accelerate investment in the implementation of mitigation and adaptation actions based on the needs identified by member states. An initiative that will facilitate access to climate finance by pursuing the health of our dear planet as the ultimate goal and common hope among all of us.

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Redazione published in Asean, Global Lens

More cooperation between ASEAN and Gulf countries

ASEAN and the Gulf Cooperation Council are considering a potential free trade agreement, a topic moreover addressed two years ago by the Italy-ASEAN Association in Dubai. Here we publish an excerpt from the joint communiqué issued at the end of the bilateral summit on Friday, October 20

Inspired by the common interests and deeply rooted historical ties between the two sides, the leaders exchanged views on common regional and international issues and discussed ways to improve and develop their partnership to take advantage of the growth opportunities that can be exploited through cooperation between the two regions, based on the shared visions for the future of their partnership and the values embodied in the United Nations Charter. The leaders pledge to:

  1. Join efforts to promote peace, security, stability and prosperity through mutual respect and cooperation among countries and regions to achieve development and progress and maintain the international order based on rules and adherence to the UN Charter.
  2. Undertake consultations and explore cooperation on specific areas of common interest to implement the four priority areas of the ASEAN Outlook on the Indo-Pacific (AOIP): maritime cooperation, connectivity, Sustainable Development Goals (SDGs), economic.
  3. Recognize the importance of the oceans and seas as key factors in the region's growth and prosperity, and reaffirm the importance of maintaining and promoting peace, stability, maritime security, freedom of navigation and overflight in the region, and other legitimate uses of the seas and legitimate and unimpeded maritime trade, as well as promoting the peaceful settlement of disputes, in accordance with universally recognized principles of international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
  4. Strengthen ties between the two sides, multilaterally and bilaterally, and in global forums, pursuing opportunities for sustainable development, peace, security and stability, and to address global and regional challenges and risks; to ensure sustainable supply chains, transport interconnection, and strengthen food, energy and water security, as well as build cooperation on green and renewable energy sources and technologies, tourism infrastructure, and creation of energy sources.
  5. Conduct further consultations to explore new opportunities for trade, investment and technical cooperation between ASEAN and the GCC, including the possibility of developing a framework agreement on economic, trade and investment cooperation.

Full text here.

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Redazione published in Asean, Economy and trade

How ASEAN can defeat the plastic ocean

Plastic pollution is a crucial challenge for the future of the ASEAN region, with more than 31 million tons of plastic waste generated annually in 6 out of 10 countries. But there is potential to solve the problem

By Tommaso Magrini

Plastics are a major problem in Southeast Asia and one of the main obstacles to the region's transition to a green economy. Of the ten most polluting countries, six are in Southeast Asia, according to data from the World Economic Forum. The Philippines alone dumped 356,371 metric tons of plastic waste into the ocean in one year, about 35 percent of the global figure. It is followed by Malaysia (73,098), Indonesia (56,333), Myanmar (40,000), Vietnam (28,221) and Thailand (22,806). Together, these countries are responsible for more than half of the plastic pollution in the oceans.

However, ASEAN seems determined to tackle the problem head-on. Member states recognized their duty to work together to protect their coasts, seas and livelihoods from marine plastic pollution back in 2019 when they adopted the Bangkok Declaration on Combating Marine Debris in the ASEAN Region. Based on this commitment, they launched the Regional Action Plan for Combating Marine Debris in 2021. This five-year plan aims to support regional policies and improve coordination in three main areas: reducing plastic use and production, improving collection and recycling, and promoting reuse.

A further step was taken in recent weeks, to be precise at the September ASEAN summit in Indonesia, at the end of which came the publication of the ASEAN Blue Economy Framework. Bans on single-use plastic products are an example of national policies being developed by an increasing number of countries in the region. 

Another policy tool being introduced is "extended producer responsibility" (EPR) schemes. These require producers to rethink the way they design and develop products, taking responsibility for the entire life cycle, including disposal and recycling. Manufacturers are required to meet waste reduction targets and pay fees that will finance the plastic waste collection and recycling system.

In 2022, Vietnam became the first Southeast Asian country to issue a decree imposing packaging, recycling, and waste treatment obligations on producers and importers. The Philippines followed, enacting the EPR law in July 2022. In many cases, the initiatives are only voluntary, as in the case of Thailand. Companies are also urged to develop reusable products, reduce virgin plastic use on the one hand and contribute to post-consumer collection and recycling on the other. For the goals to be ambitious and achievable, it is important to consider the local context, ensuring that all actors in the plastics value chain are able to meet them.

Regional collaboration, as the World Economic Forum always emphasizes, becomes key to developing better policies. Facilitating dialogue between countries is beneficial for governments and businesses. It provides an opportunity to share lessons learned from pilot projects and to disseminate successful solutions developed locally. Strong integrated action to combat plastic pollution can pave the way for a new era for ASEAN: from being known as the region most affected by plastic pollution in the oceans, it can become the region with the boldest green ambitions.

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Redazione published in Asean, Politics and strategy

Australia jumps into ASEAN

Last year Australia's direct investment in Southeast Asia totaled A$28 billion, a figure Canberra clearly wants to increase

By Tommaso Magrini

The recent ASEAN summit was also attended by several partners, many of whom signed important cooperation agreements with the South East Asian bloc. Among them is certainly Australia. In Jakarta, home of the summit, Canberra presented an economic plan to increase business with the ASEAN area, which includes an immediate commitment of $44.7 million to create a new Australian "business team" based in the region. The plan, titled "Invested: Australia’s Southeast Asia Economic Strategy to 2040", states that Australian investments in the region are "underpaid". Written by Australia’s special envoy to Southeast Asia, Nicholas Moore, it contains 75 recommendations, including the establishment of a working group to identify and facilitate more mutual investment. Prime Minister Anthony Albanese has called it "a reinforcement of our long-awaited commitment, reflecting the speed of the transformation taking place and the scope of the opportunities that await us". Canberra also immediately appropriated nearly AUD 20 million for a Southeast Asia Business Exchange that will boost trade, and 6 million Australian dollars for a pilot placement and internship program for young professionals in the region. " By 2040, ASEAN will be the fourth largest market after the US, China and India. It is a huge opportunity for Southeast Asia, it is a huge opportunity for Australia," said Foreign Minister Penny Wong. Last year Australia’s direct investment in South-East Asia amounted to 28 billion Australian dollars, a figure that Canberra wants to increase sharply. The new projects just announced also identify some specific areas on which it is intended to strengthen links: agriculture and food, resources, green energy transition, infrastructure, education and skills, visitor economy, health, digital economy, professional and financial services and creative industries.

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Redazione published in Asean, Global Lens

EU-ASEAN Climate Diplomacy

Green Diplomacy Week 2023 kicks off in partnership between the European Union and the Association of Southeast Asian Nations. Here is the program

EU-ASEAN Green Diplomacy Week 2023 kicks off on Sunday, October 15. First introduced to the public in 2019, Climate Diplomacy Week has become a landmark annual event where delegations and embassies of EU member states around the world host events to promote dialogue and cooperation on climate change. The theme is particularly important in the context of cooperation with the ASEAN bloc. Called "Green Diplomacy Week" this year, the event still aims to serve as a platform to showcase success stories and inspire further action. In late 2022, the EU launched the Global Gateway strategy, a new global strategy to build resilient connections with the world, with sustainable connectivity and green transitions as two main pillars. In this context, Green Diplomacy Week 2023 will also be an opportunity to continue the momentum of the new global strategy. A series of online, offline and hybrid events are planned. Events will include panel discussions, exhibitions and clean-up sessions, as well as a fun walk/run/bike ride. Events will focus on engaging youth and the ASEAN public. A total of 10 events (online, offline and hybrid) will be organized by the EU Communication and Visibility for ASEAN project in collaboration with EU delegations in ASEAN member states, EU-ASEAN partners, communities and youth organizations in ASEAN member states. Among the events included in the program: a workshop on plastic waste recycling organized with Thailand, a 2-day learning camp for "young nature guardians" in the Philippines, a series of waste management education meetings in Malaysia, and interactive presentations and games for indigenous school children in the Pu Mat forest in Vietnam. Also on the agenda are very concrete activities such as cleaning a river in Brunei and a photography and artwork competition in Laos. Concluding on Sunday, October 22, with a Mekong River shoreline cleanup and tree planting in Cambodia.

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Carola Frattini published in Asean, Economy and trade

Southeast Asia has more and more metro lines

Expansion of metro networks is a key factor in combating urban traffic and emissions in urban areas of ASEAN countries

By Carola Frattini

As Southeast Asia's urban population grows, the region's urban centers are becoming increasingly important transportation and logistics hubs. But while this development is a symptom of rapid economic growth, it has also led to serious problems of traffic congestion and air pollution. In order to reduce travel time, traffic, and consequently emissions, the expansion of metropolitan networks therefore appears to be a key investment for Southeast Asian governments. 

Currently, among ASEAN countries, Malaysia and Indonesia stand out as leaders in sustainable urban transportation; however, the Thai government's latest significant investments in rail infrastructure are bringing Thailand closer to these two industry pioneers. The recent debut of the Yellow Line in Bangkok has attracted a great deal of attention, as during the trial period in June 2023, it recorded an impressive turnout of about 680,000 passengers in just over two weeks. The monorail spans 23 stations over a distance of 30 kilometers and connects the outskirts of Bangkok to the neighboring province of Samut Prakan. Prime Minister Prayuth Chan-ocha also praised the service, calling it "comfortable" and encouraged citizens to use this new link. 

Traffic congestion has also been a serious problem in Manila, Philippines, for a long time: already in 2017, traffic-related economic losses amounted to approximately 3.5 billion pesos per day. In order to solve this problem, the Philippines is also focusing on new metro lines. The Metro Rail Transit network in the Manila metropolitan area is expanding with the construction of Line 7, financed by the San Miguel Corporation, one of the country's largest multinational corporations. This 22-kilometer elevated rail line will reduce the travel time from North Avenue, Quezon City, to San Jose del Monte, Bulacan, from the current two to three hours to about 35 minutes. Vietnam is also trying to upgrade its public rail transportation system. The Vietnamese government has declared that work on Ho Chi Minh City's first subway line will be completed in 2024. This project will result in Vietnam having 33 kilometers of subway lines next year, after the first subway service in Hanoi was only inaugurated in November 2021.

The metro infrastructure sector in ASEAN countries has become an important market for rail infrastructure companies especially from Japan and Europe. With more than 300 kilometers of subway lines in Tokyo, Japanese companies are eager to share their expertise with the region. One such company, Shimizu, has already won a contract in Indonesia to build a railway line that is scheduled to open in 2029. Meanwhile, French train supplier Alstom has also entered the Southeast Asian market, supplying new cars for Singapore's north-south and east-west lines. Deliveries have already begun, with 16 sets of trains, and Alstom plans to deliver a total of 106 sets by the end of 2026. As demand for rail infrastructure in the region grows, it seems likely that other companies will follow suit in the coming years. 

However, these companies will most likely have to compete with an increasing role of Chinese companies, which although they have had limited success in Southeast Asian rail markets for now, have led in recent times the construction of the high-speed railway connecting Laos to China's Yunnan province, which opened in December 2021, and Indonesia's high-speed rail line, which opened on October 2. Thus, it cannot be ruled out that China will use this experience to compete with Japanese and European suppliers in metro line projects in ASEAN countries.

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Redazione published in Asean

President Michelangelo Pipan's speech at the HLD 2023

Honorable Deputy Minister of Foreign Affairs of Thailand Mr Sihasak Phuangketkeow

Honorable  Deputy Minister of Enterprises and Made in Italy  Mr Valentino Valentini 

Representatives of governments and agencies from all over ASEAN and of the ASEAN secretariat,

Hon. Attilio Fontana, Governor of the Lombardy region,

Excellencies   –   distinguished guest   –    ladies and gentlemen

We have just heard a lot of very important data from the CEO of TEH Ambrosetti, I am going to give also a little human touch.

It is not an easy thing to convey the deep sense of happiness and fulfilment that I am experiencing being here today in Bangkok for the inauguration of the 7th edition of the HIGH LEVEL DIALOGUE ON ASEAN ITALY ECONOMIC RELATIONS.

Let me try and explain:

This time of the year ten years ago in 2013 I was leaving Bangkok upon accomplishing my term of duty as Ambassador of Italy to Thailand. I had very much enjoyed working in this country, in this Krug Thep, the city of angels. Everything had been in place to make the experience rich and pleasant: the kindness of the people, the availably and spirit of cooperation of the authorities, the country’s beauty rich culture and extraordinary food.

But what counted most I had had the opportunity to experiment in person those things that statistics will never tell. Behind the excellent and sustained over the years growth rate, behind the impressive figures of the foreign trade and improving standard of living stood a lasting and deeper reality: the spirit of the people, their vitality, their resolve to improve and progress, the intensity of life one could sense in the air. This was true of Thailand as well as of the other member countries of Asean I had the opportunity to observe while I was posted here. That was the secret recipe of the Asean economic miracle and its perspectives of continued strength, the more so since these countries were bound together by their Association. 

I thus left with a thought firmly planted in my mind that I made into my mission: something needed to be done so that Italy and in particular its economic players  achieve a better perception of what extraordinary opportunities are offered by this part of the world. Although it must be said that our Businesses do pretty well in the Asean countries, that our products enjoy a strong  reputation and hold a reasonable space in the Asean markets, I was convinced  that it was well short of tapping the full potential.

Not long after I met with some very  important Italian personalities that shared this Idea with the same enthusiasm and very quickly the Italy Asean Association saw the light, thanks also to the support of the Italian Ministry of Foreign Affairs and of the main public entities that promote Italian interests abroad.

Much has happened since. In 2015 ASEAN has become a Community also in the economic field, with practically unhindered circulation of goods and capitals. Then came the RCEP agreement opening up an enormous common market in this part of the world. Those achievements consolidated the ASEAN role and made its member countries an even more appealing partner, one that could not be overlooked. In fact the Italian government did not fail to realise that and sought  the status of ASEAN’s Development Partner, which was achieved in 2020. 

The Association’s work to promote ASEAN countries in Italy has continued all along since 2015 with many awareness activities with the support of its members, some of the major Italian Corporations and in cooperation with the Italian official bodies and the Embassies of the ASEAN  members countries in Rome. We soon realised that it was of the utmost importance to bring the Italian CEOs to ASEAN to meet their counterparts, to see with their own eyes the dynamism of  the people, governments and entrepreneurs in these countries. That’s how the cooperation with TEH Ambrosetti was initiated. Quite appropriately the first edition of the HLD was held in 2017 in Jakarta, the seat of the ASEAN Secretariat, on the 50th anniversary of the foundation of ASEAN.

The Dialogue has now reached its 7th edition and -allow me to say at long last!- lands in Bangkok, the very place where ASEAN was born.

Much has happened since the days I left this capital: while ASEAN was firmly advancing on its path, the world order has been gravely challenged: a fearsome pandemic made millions of victims and almost hibernated every activity, war has broken in eastern Europe, globalisation is being menaced by fragmentation, inflation is affecting most of the countries in the world.

What has not changed is the ASEAN countries : their openness to the world, their willingness to progress, the attitude of people – entrepreneurs-governments have all remained unhindered if not reinvigorated. Growth estimates are peaking again after the pandemic.

To the challenges of  these times of  trouble ASEAN responds with a firm belief in international cooperation and presents itself as a champion of multilateralism and multipolarism. ASEAN looks at the rest of the world with trust with the spirit of working together for the common interest. The Italy ASEAN Association  fully agrees: we welcome the attitude of countries that reject the idea of confrontation as unavoidable and work in harmony in the pursuit of the mutual rewards of cooperation.

In these very days Thailand is in the limelight: the omens for a renewed thrust in the economy look favourable; negotiations with the EU have resumed recently, with the goal of deepening bilateral trade and investments relations (hopefully with a view to the conclusion of a FTA);  the government is launching important initiatives that are infusing new energy into the economy. 

All this make up for an ideal framework and bestow a special importance to today’s work’s. This meeting could not have happened at a better time: I am told the our Dialogue is the first important international  Economic Forum taking place since the new government of Thailand came into power: this is extremely auspicious and is for the Association reason of great satisfaction. 

Today you have the chance  to explore the opportunities that lay in our respective economies. Today you can saw the seeds to increase trade and cooperation between our countries. 

I thank you for the attention and wish you  the best of success.

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