President's Newsletter - December 2015

Amb. Ted Osius
Amb. Ted Osius
President & CEO
US-ASEAN Business Council

We’ve had another successful, busy year.  In fact, the Council managed almost 300 events across our eight offices this year helping our members move issues forward, be better informed and build relationships.

It was a year of change. Myanmar’s historic opening to the world took an incredible step forward with a sweeping NLD victory in November elections which will bring the opposition party into power. The Lee Kuan Yew era ended as Singapore’s esteemed founding Prime Minister passed away.   Singapore held historic elections, the first after Lee Kuan Yew’s passing, where his party, the People’s Action Party (PAP), continued in power with an even stronger mandate.

It was a year of progress.  After years of negotiation, on October 5, the Trade Ministers of the 12 Trans Pacific Partnership announced that a final deal had been reached.  This is a major step forward for American economic leadership in Asia and especially for engagement with ASEAN, with four member countries (Brunei, Malaysia, Singapore and Vietnam) signed on to the agreement.  In addition, Indonesia, The Philippines and Thailand have indicated their strong interest to join the TPP in the future. 

Significantly, the ASEAN Economic Community (AEC) will be formally established on December 31, and ASEAN has announced its Vision 2025 to help the AEC further progress over the next decade.  Also, just last month the US-ASEAN Relationship was upgraded to a strategic partnership in Kuala Lumpur at the ASEAN-US Summit where President Obama met with his counterparts from Southeast Asia for the sixth consecutive year.

It was a year of celebration.  Singapore celebrated its 50th anniversary and the U.S. and Vietnam celebrated 20 years of diplomatic relations.

It was a year of changes for the Council. We completed a successful office renovation in Washington, D.C, including the dedication of the Roderick M. Hills Conference Room. In the region, Ambassador Michael Michalak joined us as Senior Vice President and Regional Managing Director to lead our engagement throughout Southeast Asia. 

2016

  • Looking forward, 2016 is already shaping up to be a busy and important year:
  • President Obama has invited the leaders of Southeast Asia to the United States early in the New Year.  Details have not been formally announced but we will keep you informed as information becomes available.
  • The Council is planning a conference focusing on the ASEAN Economic Community and Why ASEAN Matters in the 21st Century in San Francisco on February 17, 2016.  Stay tuned for more details in the New Year.
  • The Philippines will hold Presidential Elections in May of 2016.  A number of candidates have declared their intentions to run.  (See Philippines section of this newsletter for more information).
  • Vietnam will appoint new leaders and a new government in the first half of 2016.  This process should completed in June.   (See Vietnam section of this newsletter for more information).
  • The government transition in Myanmar should also be completed early in the second quarter of 2016.   (See Myanmar section of this newsletter for more information).
  • We will be following the progress of the Regional Comprehensive Economic Partnership (RCEP) and TPP throughout the year.
  • And of course, 2016 is also a Presidential election year in the United States, and the Council will do our best to ensure that ASEAN remains high on the agenda of the new administration after the November election. 

As always, you can check out the calendar at the Council website to get a sense of our many upcoming events in Southeast Asia and Washington, D.C. 

Highlights

Advocacy

Our numerous advocacy wins in 2015 are highlighted throughout this letter, but a few recent highlights include:

  • Council VP-Policy Marc Mealy spoke at the USTDA’s US-ASEAN Renewable Energy Symposium in San Francisco on December 10.  In his remarks, he highlighted the Infrastructure Committee’s key advocacy messages on the value of enhancing transparency, strengthen legal frameworks and incorporating the principles of life cycle costs and value for money in government procurement processes in order for ASEAN nations to attract greater American private sector investment and access to green technologies.
  • The Council provided written comments to the Government of Indonesia’s Minister of Trade on the draft E-Commerce Law.  The comments by Council members advocated for international best practices to be adopted across the entire spectrum of e-Commerce activity, ranging from customs, payments, supply chain and logistics, e-Commerce platforms to cross-border data flows.  In a related matter, the Council also successfully advocated that the e-commerce sector be removed from Indonesia’s negative investment list as part of the Government of Indonesia’s review process.  The resulting change in policy will now allow foreign investors to own up to 33% equity in domestic e-commerce related businesses in Indonesia.
  • The Council’s advocacy efforts in coordination with US Embassy Jakarta’s team and Ambassador Blake on Manpower Regulation 16/2015 resulted in the Government of Indonesia making changes to that regulation in the form of new guidelines which removed the requirement for the foreign nationals traveling to Indonesia for short periods to obtain a temporary work permit (IMTA).  In addition, the requirement of the 1:10 ratio of foreign-to-local workers and for non-resident directors and commissioners to obtain working permits were also removed.
  • The Council, in partnership with the US Chamber of Commerce, the American Chamber of Commerce in Manila and the US-Philippines Society is drafting a joint letter to President Aquino advocating for him to sign a bill to create a Department of Information and Communications Technology (DICT).  Both Houses of the Philippine Congress have passed bills encouraging a DICT to be set up.   The letter notes that a Philippines DICT could take a leadership role in driving next generation reforms and investments in the domestic ICT ecosystem, to better support the ICT industry in playing its role  as an “enabler” across a wide range of areas from education, services, SME’s and the $18 billion BPO industry.  

If you have questions about the Council’s advocacy efforts, please reach out to Marc Mealy at mmealy@usasean.org.

Intelligence

We’ve added the ASEAN Top 5, a twice monthly refresh of the top business stories in the region, to our website. #ASEANTop5

Relationship Building

The Council held numerous major events in 2015 that provided our members the opportunity to engage at a high-level with leaders. In the U.S. we hosted President Jokowi of Indonesia, Prime Minister Najib of Malaysia, President Aquino of the Philippines,  Prime Minister Prayuth of Thailand, and General Secretary Truong and President Sang of Vietnam. We were also able to engage Prime Minister Hun Sen of Cambodia and President Thein Sein of Myanmar in the region as well as additional meetings with President Jokowi of Indonesia, Prime Minister Prayuth of Thailand, and President Sang of Vietnam in Southeast Asia.

We are very proud of the US-ASEAN Business Alliance for Competitive SMEs which is a powerful way to support the growth of small businesses in ASEAN.  The Business Alliance was created at the request of the ASEAN Economic Ministers and cooperation with US-AID.  Please contact Mario Masaya at mmasaya@usasean.org for more information.

Promotion

In 2015, the Council led a U.S. Ambassadors’ Tour to Chicago, Minneapolis, and Seattle, and welcomed Young Southeast Asian Leaders Initiative to Washington.

President Obama recognized the Council for its support of the ASEAN Business and Investment Summit and the US-ASEAN Business Alliance for Competitive SMEs during his visit to Kuala Lumpur for the East Asia Summit in November.

Membership

We are pleased to welcome our newest members:

  • Advanced Micro Devices
  • Amazon Web Services
  • Baxalta
  • HP, Inc.
  • Linkedin
  • Texas Instruments
  • Twitter

In addition to new members, we are delighted to announce a couple of upgrades to the Chairman’s Council level:

  • Amgen
  • Boston Scientific

This brings our current membership to 72 at the Chairman’s Council level and 88 at Corporate, for a total of 160 members.  

APEC

Major developments in 2015

  • The 2015 APEC CEO Summit was held in Manila, Philippines on November 16 to 18. The Council, as part of the U.S. APEC Business Coalition, convened and chaired meetings with H.E. President Sang (Vietnam), H.E. Prime Minister Najib (Malaysia) and H.E. Thomas Lembong, Minister of Trade (Indonesia). All of these meetings underscored the importance of securing successful passage of the Trans-Pacific Partnership. 

View the Council's latest APEC updates

ASEAN

Major Developments in 2015

Looking Ahead

Advocacy Efforts

  • The Council presented a white paper to the ASEAN Economic Ministers delivering sector by sector updates on priority action items for Council members. For more information, contact Anthony Nelson at anelson@usasean.org.

View the Council's latest ASEAN updates

TPP

The Council’s Board of Directors’ Executive Committee is reviewing a draft public statement on the TPP that is expected to be released in early January, prior to President Obama’s final State of the Union address on January 12, 2016.  In addition, the TPP Business Coalition, of which the Council is a member, will also likely issue a public statement on the TPP in the near future.  Council members interested in the TPP Business Coalition may visit their website: http://tppcoalition.org.

View the Council's latest TPP updates

Customs

Major Developments in 2015

  • The Council, and the business community at large, have long recognized trade facilitation as an indispensable pillar for the economic success of the ASEAN Economic Community. While substantial progress has already been made, more lies ahead.  Through their participation in the Trans-Pacific Partnership (TPP), Malaysia, Singapore, Vietnam, and Brunei have committed to substantial reforms in customs and trade policy. If other ASEAN members identified similar customs provisions as objectives for improving the customs environment, it may exponentially improve ASEAN’s customs regulatory environment.  The full text of the TPP’s customs chapter can be read here.
  • Prime Minister of Malaysia Najib Razak affirmed during the ASEAN Summit on November 22 that the deadline for completing the Regional Comprehensive Economic Partnership (RCEP) has been moved to the end of 2016.  According to insiders, negotiations have intensified since the breakthrough compromise on tariff modalities in August, but a final agreement remains far off.

Looking Ahead

  • 25th ASEAN Directors-General of Customs Meeting: The Council looks forward to leading a strong U.S. business delegation to meet with the ASEAN Customs Directors-General in late May / early June 2016 in Phnom Penh, Cambodia.
  • The Council has been invited to submit proposals for engagement with the ASEAN Customs Procedures and Trade Facilitation Working Group (CPTFWG) and the ASEAN Customs Enforcement and Compliance Working Group (CECWG). The CPTFWG and the CECWG are two of the working groups tasked by the Customs DGs with implementing the Strategic Plan of Customs Development (SPCD) 2011-2015 (SPCD 2016-2020 is currently being finalized). The new engagement with the customs integration working groups would be a valuable deepening of the Council’s regular engagement with the Customs DGs Meeting.

Advocacy Efforts

  • In November the Council partnered with the Ministry of Finance of Vietnam to organize a Customs and Trade Facilitation Forum in Hanoi. The Vietnamese government delivered remarks providing updates on reforms while Customs Committee members gave presentations on various customs and trade facilitation topics to an audience comprising representatives from various trade-related government agencies.
  • The Customs Committee led its annual Mission to the ASEAN Directors-General of Customs Meeting on May 20 and 21 in Brunei. In addition to this joint consultation, the Council delegation met separately with Customs officials from most of the ASEAN Member States and the ASEAN Secretariat. The Council submitted a briefing paper to the Customs officials. Council representatives made presentations addressing the paper’s two major themes:
    • Realizing AEC 2015: Advancing full, uniform, and inclusive implementation through collaboration with the private sector
    • The Post-2015 AEC Agenda: Supporting next generation trade

View the Council's latest Customs updates

Defense & Security

Major Developments in 2015

Looking Ahead

  • The Singapore Air Show will be held February 16 to 21, 2016. The Council will be organizing side meetings during this event. Please contact Ezani Mansor at emansor@usasean.org for more information. 

View the Council's latest Defense & Security updates

Energy

Major Developments in 2015

  • At this year’s ASEAN Energy Ministers Meeting in Kuala Lumpur in October the Council submitted a proposal and recommendations to the ASEAN Senior Officials and Ministers for Energy to raise the level of cooperation between the U.S. Energy private sector and ASEAN. As part of this proposed enhanced engagement the Council’s Energy Committee will continue to work to support the US government’s interagency efforts to support trade and investment between the U.S. and ASEAN. 

Advocacy Efforts

  • The U.S. government hosted a U.S.-ASEAN Energy Infrastructure Reverse Trade and Symposium on December 7 to 11 in San Francisco with the aim of fostering commercial partnerships in clean power generation and grid modernization projects in Southeast Asia. The Reverse Trade Mission brought senior energy officials from ASEAN to the United States for site visits in California and Colorado. The visit culminated in a two-day symposium focused on technologies to support grid balancing strategies, natural gas for power, grid modernization projects and how to create an enabling environment for clean energy in Southeast Asia. The Council’s Vice President for Policy, Marc Mealy, spoke on a panel about creating an enabling environment for investment in ASEAN for developing energy infrastructure.
  • On December 1, the National Bureau of Asian Research (NBR) and the US-ASEAN Business Council co-hosted the launch of NBR’s special report, “Indonesia: A Regional Leader in Transition” in Washington DC. The report follows from an energy security workshop held in July in DC and includes review of different policy challenges for Indonesia as it seeks to meet rapidly rising domestic demand for energy while also balancing concerns and commitments to tackle climate change.

View the Council's latest Energy updates

Financial Services

Major Developments in 2015

  • In March, ASEAN financial regulators announced the conclusion of a preliminary agreement for the ASEAN Banking Integration Framework (ABIF), which permits member countries to sign bilateral deals allowing each other’s banks to operate in their respective jurisdictions on the same terms as domestic financial institutions.  The framework is an important step for the long-term growth of ASEAN banks and a crucial component of the regional bloc’s economic integration plan.  The ABIF plan currently lacks any mechanism by which offshore banks can achieve Qualified ASEAN Bank (QAB) status, though it does not forbid global players from eventual inclusion into the system. 
  • The integration of ASEAN’s insurance markets, relative to banking integration or regional capital markets development, has long stood as a slower moving element within the AEC’s broader regional financial services development agenda.  ASEAN’s insurance protection rate of 3.4 percent (in 2013) is only about half of the global average protection rate of 6.3 percent.  This trend appears to have changed recently, with the ASEAN Insurance Council’s (AIC) finalization of the ASEAN Insurance Integration Framework (AIIF).  The AIC, which is composed of the life and nonlife insurance associations of ASEAN member nations, first announced the framework following an industry forum in May.  While details are still emerging, new information revealed during ASEAN’s November summit in Kuala Lumpur suggests that the AIIF could play an important role in speeding up the development of more integration insurance markets.  Significantly, it calls for member governments to consider alignment of legal and regulatory frameworks, as well as for closer collaboration with the private sector.  

Looking Ahead

  • The Council looks forward to leading a strong U.S. business delegation to the Second ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in late March / early April 2016, in Vientiane, Laos.  Suggested topics for discussion include: 1) capital markets integration, 2) digitalization of financial services and data management, 3) financial inclusion, and 4) infrastructure finance. 

Advocacy Efforts

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments  in 2015

  • Indonesia’s President Joko Widodo’s aim to achieve self-sufficiency in staple products and food supply is driving up prices and provoking industry-wide criticism. In line with President Jokowi’s campaign promise to reduce reliance on food imports, the government introduced a law banning imports of offal and secondary beef cuts in January and will allow only state-owned enterprises to import the products during shortages.  Since the imposition of the beef import restrictions, the Indonesian Meat Importers Association (ASPIDI) reports that domestic beef prices have escalated by over 20 percent as demand exceeds domestic production capabilities. As the Government of Indonesia sustains the import restrictions, many political analysts warn that it risks repeating the mistakes of his predecessor. Such protectionist policies also risk undermining a drive to revitalize Southeast Asia’s biggest economy, where growth has fallen behind Malaysia, the Philippines and Vietnam.
  • The Myanmar Ministry of Commerce announced that it would, for the first time, relax long-standing trade restrictions on international companies by allowing limited onshore imports. The new regulation, issued via Ministry circular 96/2015 on November 11, would allow foreign businesses to import agricultural products and healthcare equipment with the minimum requirement that they partner with a local company. Pertaining to the agricultural sector, these products include fertilizers, insemination seeds and pesticides. The rules do not stipulate a minimum share percentage for the local partner. The Council will continue to monitor this new policy and provide recommendations to officials in Q1/Q2 2106.
  • Two Vietnamese husbandry associations have urged the Vietnamese government to investigate the alleged dumping of U.S. poultry in Vietnam. The Animal Husbandry Association in southeastern Vietnam and the Animal Husbandry Association in Dong Nai signed a petition calling for the investigation on July 29. The petition comes after Tuoi Tre newspaper reported on July 1 that chicken legs shipped from the U.S. are on sale in Vietnam at only US$0.9 a kg, or VND20,000.

Looking Ahead

  • The Ways and Means Committee of the House of Representatives of the Philippines plans to take up a measure seeking to raise the prices of soft drinks by as much as P10 per liter. The additional pricing is based on studies cited by the World Health Organization showing that raising prices by 20 percent would reduce consumption by 24 percent. The extra levy on the sugar-based drinks will be on top of the 12% value-added tax already imposed on consumer goods. The additional charge (House Bill No. 3365) will apply to soft drinks, soda and soda pop, fruit drinks and punch, sport drinks, sweetened tea, coffee drinks, energy drinks and all non-alcoholic ready-to-drink beverages. Exempted are 100 percent fresh fruit juices, yogurt, as well as milk and milk substitutes. According to the draft proposal, it is envisioned to take effect in 2016 and will be hiked by 4 percent every year thereafter starting January 1, 2017. The Council is monitoring this development and will be submitting a statement aligned with the concern expressed by various industry associations that the proposal could negatively affect local sugarcane farmers, and will not generate additional tax revenue for the government contrary to claims by the bill’s proponents. Besides this statement, the F&A committee will also be developing a white paper outlining priorities for agricultural development to be presented to the next administration in July 2016.
  • The F&A Committee is exploring collaboration opportunities with U.S. Embassy Rangoon and USAID on the development of new food law and regulations that are critically important for the future of agriculture in Myanmar as well as the facilitation of trade in agriculture. The opportunities include providing input and comments to an agricultural investment white paper which seeks to address the various barriers to foreign investment, in particular, investment that would benefit smallholder farmers involving: participation in the development of a food safety management strategy; a multi-stakeholder strategy to implement better food safety practices and platform to build public understanding about CODEX food safety standards; participation in the public consultation forms on the draft food law, give members a chance to identify any problematic aspects in the law, and contribute to the development on new agricultural product standards. More information will be shared sometime in February or March 2016 once the new National League for Democracy (NLD) government takes shape. The committee will also organize the second industry mission to Myanmar in the July/August period.
  • Cambodia’s draft law on animal health received approval from the Council of Ministers on November 6; the law that is seven years in the making is now on the verge of reaching parliament. The law is designed to modernize and standardize Cambodia’s animal health regulations to protect public health, animals’ health, the environment, and prevent communicable diseases from animals. Cambodia’s Ministry of Agriculture said that the law will bring the country’s animal health regulations up to international standards; specifically, the adopted regulations will reflect international guidelines set by the United Nations’ Food and Agriculture Organization and the World Organization for Animal Health (OIE). The Council will be monitoring the development of this new draft law. Members who are interested in opportunities to engage with the Ministry of Agriculture should inform the Council’s F&A Manager, Sunita Kapoor (skapoor@usasean.org). 

Advocacy Efforts

  • In August, the F&A Committee conducted an inaugural industry mission to Myanmar, making it the first time the Council engaged with the Ministry of Agriculture and Irrigation and Ministry of Livestock, Fisheries and Rural Development. Contact the Council’s F&A Manager, Sunita Kapoor (skapoor@usasean.org) if you would like to review the mission notes.
  • In September, the F&A Committee conducted a business mission to the 37th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) that was held in Manila, Philippines. This was the first business mission to the AMAF in eight years and constitutes a key part of the committee’s engagement with the region. Please see press release here. Contact the Council’s F&A Manager, Sunita Kapoor (skapoor@usasean.org) if you would like to review the mission notes.
  • In November/December, the F&A Committee observed important policy developments with regards to antibiotics in feed in Vietnam. A new draft circular under development will create challenges for companies in the commercial animal feed and animal health space to provide appropriate antibiotics for use in commercial feeds. The draft circular outlines a policy that will limit both the types and dosage of antibiotics, a policy that is not used anywhere else in the world and goes well beyond international standards. Based on existing global practices, the Council is of the view that antibiotics in commercial feed is necessary to prevent, control, and treat diseases in livestock effectively. The Council’s F&A Committee has conducted technical meetings with the Department of Livestock Production and Minister Cao Duc Phat of the Ministry of Agriculture and Rural Development. Please contact the Council’s F&A Manager, Sunita Kapoor (skapoor@usasean.org) if you would like more information.
  • The F&A Committee is putting the finishing touches to updating the committee position paper. This paper outlines key opportunities for our members to work with ASEAN governments to facilitate increased business activity and investments, and serves as a guide to addressing key issues that affect agricultural and food production development and progress in the region. Please contact the Council’s F&A Manager, Sunita Kapoor (skapoor@usasean.org) if you would like to review and provide inputs to the paper. 

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments in 2015

  • At the 10th Senior Officials Meeting on Health Development (SOMHD) held in Da Lat, Vietnam on September 14 to17, ASEAN made progress in finalizing new governance mechanisms and regional strategies that will address the goals outlined in its Post-2015 Health Development Agenda. ASEAN health development activities for 2016-2020 will be organized into four main clusters: promoting healthy lifestyle; health system response to all hazards and emerging threats; access to care; and food safety. This transition presents an opportunity for the Council to establish itself as a valuable Dialogue Partner in advancing ASEAN health development.
  • A major milestone for the HLS Committee this year is the signing of the Council’s Memorandum of Understanding (MOU) with the Ministry of Health in Vietnam. The MOU was signed on November 23 by Vice Minister of Health Pham Le Tuan and the Council’s Senior Vice President and Regional Managing Director Amb. Michael W. Michalak.  See below for more details. 

Looking Ahead

  • On October 2, the Health & Life Sciences (HLS) Committee submitted a proposal for engagement with ASEAN’s health subsidiary bodies, for consideration by the ASEAN SOMHD. The proposal puts forward ongoing dialogue with SOMHD on the role of public-private partnerships in building sustainable healthcare systems, and our hope that this will lead to future collaboration that will advance specific items on the ASEAN Post-2015 Health Development Agenda. Our proposal is currently being considered by the ASEAN SOMHD, and we expect to receive feedback in the near future on the possibility of dialogue at their forthcoming meeting in Brunei Darussalam in 2016.
  • The HLS Committee is seeking to do two HLS Industry Missions to Indonesia and Vietnam in 2016. HLS-focused missions present a great opportunity for deeper engagement with health-related government agencies and other stakeholders, allowing members to learn more about the current state of health and healthcare in the country from different perspectives.  It also allows for the chance to establish new and strengthen existing relationships with local stakeholders, explore opportunities for partnership, share examples of impactful work being done by members, and advocate for a regulatory environment that widens access to innovative medical products and services.

Advocacy Efforts

  • A major milestone for the HLS Committee this year is the signing of the Council’s Memorandum of Understanding (MOU) on Partnerships to Strengthen Healthcare in Vietnam with the Ministry of Health. The MOU was signed on November 23 by Vice Minister of Health Pham Le Tuan and the Council’s Senior Vice President and Regional Managing Director Amb. Michael W. Michalak. The signing was witnessed by Minister of Health Madame Nguyen Thi Kim Tien and U.S. Ambassador to Vietnam Ted Osius. Just prior to the signing, the HLS Committee met with representatives from the Ministry led by Vice Minister Tuan to discuss areas of possible collaboration. The next step will be to form a Joint Working Group called for under the MOU that will comprise representatives from both the Ministry and the Council that will begin drafting a work plan and determine specific projects to be implemented under the MOU. The MOU is available here in English.
  • The Council collaborated with other international chambers of commerce in Indonesia to submit a Joint Position Paper on the Halal Law in Indonesia. The joint task force has been engaging with stakeholders including KADIN, the Ministry of Health, the Ministry of Religious Affairs, the National Standardization Body (BSN) and BPOM to present industry positions, and continues to do so.
  • On July 8, the Health & Life Sciences Committee led its first Industry Mission to the Philippines. The delegation met with Undersecretary of Health Kenneth Hartigan-Go and representatives from PhilHealth, the Pharmaceutical Division, the Food & Drug Administration, the Department of the Interior and Local Government, and Public-Private Partnership Center among other stakeholders.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments in 2015

  • The ASEAN Telecommunications and IT Ministers Meeting (TELMIN) was held in Da Nang, Vietnam on November 26 and 27, launching the ASEAN ICT Masterplan 2020. New topics added to this iteration of the masterplan include sustainable development through smart city technologies and over the top services (OTT). A readout from our engagement with the senior officials can be found here.
  •  It was a busy year for ICT regulation in Indonesia: the Ministry of Communication and Information Technology (MCIT) issued three draft regulations regarding protection of personal data in electronic systems, information security management systems, and electronic system software. In June the Ministry of Trade issued a draft e-commerce regulation. In July MCIT signed into law a regulation establishing local content requirements for LTE devices.  The methodology for its implementation will be determined by the Ministry of Industry under forthcoming regulations.
  • Thailand moved forward with seven laws related to the digital economy, including a law on data protection that is expected to go through National Legislative Assembly debate early next year.
  • Mobile access in Myanmar continued its exponential growth, to approximately 60%, up from 5% in 2012.  

Looking Ahead

  • The Council is soliciting member input on how best to support ASEAN in goals of the ICT Masterplan 2020, to put a plan together for regular engagement with the Telecommunications and IT Senior Officials (through TELSOM).
  • ASEAN is working with AlphaBeta and McKinsey to develop the Post-2015 ASEAN Connectivity Masterplan. One of the areas of interest is digital connectivity. Council members will be briefed by AlphaBeta on December 17 on emerging insights on the Connectivity work. AlphaBeta will also be soliciting input from Council members on what could be part of the Post-2015 digital connectivity agenda.
  • The Council is working with Deloitte to produce a publication on the importance of data flows within the ASEAN Economic Community, to be launched early next year and used throughout our advocacy efforts at the ASEAN and country level in 2016. A call for sponsorship can be found here.
  • The Council is developing a broad policy paper on "Ways to Enable ASEAN Cross-Border E-Commerce Trade." An executive summary can be viewed here.

Advocacy Efforts

View the Council's latest ICT updates

Infrastructure

Major Developments in 2015

  • The China-led Asian Infrastructure Investment Bank (AIIB), conceived to reduce the funding gap and support infrastructure construction in the Asia Pacific region, moved one step closer to being operational via a signing ceremony on June 29, 2015 in Beijing, China. Representatives from 50 countries signed the articles of agreements on the founding of the new multilateral financial institution that is regarded by some as a rival for the International Monetary Fund, the World Bank, and the Asian Development Bank (ADB). Three ASEAN countries-Malaysia, the Philippines, and Thailand-deferred joining the AIIB. Malaysia and Thailand have both since formally signed the agreement on August 21 and September 29, leaving the Philippines as the only ASEAN country not signatory, despite status as a Prospective Founding Member (PFM). The Philippines cited the need to “carefully study” the pros and cons of the country’s participation in the AIIB, while many countries have also expressed concern that the AIIB could be used a political tool by China to further strengthen its growing economic and political clout, especially in light of tensions in the South China Sea. China is the biggest shareholder owning about 30.34 percent which is equivalent to 26.06 percent of the voting rights in the multilateral lender.  The AIIB is expected to be operational beginning on December 31. The Council also analyzed the World Bank’s role in the changing landscape of Infrastructure Development in this report.  
  • Indonesia will streamline infrastructure spending over the next five years by creating a new government agency to prioritize projects. The nascent agency has already streamlined a list of 1,600 projects valued at more than US$500 billion to 22 priority projects, and has additionally assumed an oversight role over six ministries involved in infrastructure procurement.  The Indonesian government wants the private sector to fund at least one-third of its ambitious plans to spend more than US$100 billion a year in order to address the country’s lack of adequate infrastructure.  However, this target is approximately twice what it has previously spent in any one year on infrastructure.  
  • The Thai government has approved five large infrastructure projects—including three Bangkok mass-transit routes and two intercity highways—worth a combined US$9.3 billion, that will be open for bids in May 2016. To further speed up the implementation of the projects, the Thai cabinet agreed to shorten the PPP approval process to nine months, from an earlier amendment in 2013 to Thailand’s public-private partnership law which mandated a decreased in project approval from 10 years to 2 years. The government has expressed its confidence that such large-scale development projects will serve as a boon to Thailand’s cooling economy. 
  • In order to alleviate potential losses and boost prospective savings, the Philippine government is accelerating a number of infrastructure projects around the country.  To date, the Aquino government has awarded 10 PPP deals, and plans to award up to 13 more projects before the end of President Aquino’s term in May 2016.  A large amount of the infrastructure investment in the country will fall under either PPP deals or development assistance from partner countries. The Philippines stands to lose as much as P 6 billion daily in traffic costs by 2030, and investment in infrastructure, in both transport and other industries, will help to soften such losses and boost both productivity and monetary gains for the country.

Looking Ahead

  • In May, the Malaysian government announced the 11th Malaysia Plan (11MP) which outlines various mega infrastructure and investment projects such as the Kuala Lumpur-Singapore High Speed Rail, Klang Valley Mass Rapid Transit 2 and 3, Klang Valley Light Rapit Transit 3, Pan Borneo Highway, Penang Transport Master Plan, Pengerang project and the planned Klang Valley highways.  The Council will be organizing an inaugural Energy and Infrastructure Industry Mission to Malaysia, alongside the 2016 Malaysia Business Mission. This one day industry mission which will be an opportunity for construction and infrastructure players to learn more and get plugged in the conversations. 

Advocacy Efforts

  • On June 4, the Council led a delegation of 10 member companies for an inaugural Infrastructure Industry Mission to Indonesia. President Jokowi has made infrastructure development a key priority for his administration to support both broader based economic growth and industrial led economic development in Indonesia in the coming years.  The President has stressed the need to upgrade Indonesia’s infrastructure to lower costs in Indonesia’s export ecosystem for SME’s and increase the competitiveness of the manufacturing sector to attract both foreign and domestic investment. The delegation, led by the Council’s Vice President for Policy, Marc Mealy, met with leaders of government ministries and state owned enterprises involved in the management of key projects.
  • On June 17, the Council held a roundtable discussion with H.E. Arkom Termpittayapaisith, Thailand’s Deputy Minister of Transport to discuss recent developments and future plans for Thailand’s transportation infrastructure.  Minister Termpittayapaisith discussed infrastructure development plans for the next eight years, emphasizing the need for growth through enhancing infrastructure rather than stimulating consumption.  He further stressed the importance of connectivity through regional infrastructure, particularly in light of the introduction of the ASEAN Community at the end of 2015.  Thailand’s plans for four new types of Special Economic Zones (SEZ) were also highlighted, focusing on different industries such as tourism and science and technology.  Given the regional interconnectedness upcoming in the ASEAN Community through the implementation of the Master Plan on ASEAN Connectivity (MPAC), growth in infrastructure is vital to the region.  The document, “Thailand’s Transport Infrastructure Development”, can be downloaded here.

View the Council's latest Infrastructure updates

Brunei

Major Developments in 2015

  • Upon conclusion of the TPP, Brunei’s Sultan stated that the country is focused on implementation. Brunei hopes to benefit from increased market access, trade and investment flows among the TPP member countries. Total trade between Brunei and TPP economies amounted to $10 billion last year and accounted for around 64 per cent of the country’s overall trade.
  • Brunei has committed to reforms under the TPP for improved labor standards. The TPP requires acceptable work conditions such as a minimum wage, fair hours of work and workplace safety. Brunei has never had a minimum wage. The Sultanate is working towards these legal reforms under the Brunei-US Labor Consistency Plan, a bilateral instrument in accordance with Chapter 19 of the TPP.

Looking Ahead

  • We expect to have a new Brunei ambassador to the U.S. in the beginning of 2016. The Council will send an update when the new ambassador is officially announced and will plan to host him/her for a roundtable in Washington, D.C., soon thereafter.

Advocacy Efforts

  • The Council followed up on a promise made to the Ministry of Industry and Primary Resources during the 2014 Brunei Business Mission to support the development of Brunei SME’s through a capacity building workshop. The event, entitled “Integrating Competitive SMEs into Global and Regional Markets,” was held on the sidelines of our Customs DG mission in Bandar Seri Begawan in May.

View the Council's latest Brunei updates

Cambodia

Major Developments in 2015

View the Council's latest Cambodia updates

Indonesia

Major Developments in 2015

Looking Ahead

  • The Indonesia Committee is looking to host a human capital development forum in Jakarta in Q2 of 2016 and the Council is currently exploring potential partners. Any interested companies please contact a member of the Indonesia team.

Advocacy Efforts

  • In October the Council’s Indonesia Committee was successful in advocating for an amended manpower regulation. In July the Ministry of Manpower issued Regulation 16/2015 that introduced stricter provisions for temporary worker permits which, if enforced, would have made it extremely difficult for foreign workers to enter Indonesia on short-term assignments. Through concerted engagement and direct advocacy with the Minister of Manpower, Director-Generals and Director level officials, the Council’s Indonesia team was able to provide Indonesia Committee member input that helped drive release of the amended regulation in just 3 months. With the new decree, the requirement for the foreign nationals traveling to Indonesia for short periods to obtain a temporary work permit (IMTA) for the provision of training/speeches/seminars and meetings with the representative or branch offices in Indonesia is no longer required. The amended regulation also provided clearer guidance for requirements to arrange for Foreign Manpower Utilization Plan (RPTKA) and short term Permit to Employ Foreign Manpower (IMTA). In addition to the above changes, the requirement of the ratio 1:10 of foreign-to-local workers was removed. The requirement for non-resident directors and commissioners to obtain working permits was also removed.

View the Council's latest Indonesia updates

Laos

Major Developments in 2015

  • Malaysia symbolically handed over the chairmanship of ASEAN to Laos during the 27th ASEAN Summit in November. Laos’ theme will be “Turning vision into reality for a dynamic ASEAN Community.” Officials from the Ministry of Foreign Affairs briefed members in Washington, D.C. earlier this month, stating that Laos’ priorities for their Chairmanship will include trade facilitation, tourist development, SME development and connectivity.

Looking Ahead

  • In 2016 Laos will host the ASEAN Finance Ministers and Bank Governors Meeting (expected late March/April), the ASEAN Economic Ministers Meeting (expected August), and the East Asia Summit, ASEAN Summit and ASEAN Business and Investment Summit (expected September).
  • The Council is planning the 2016 Laos Business Mission in March, to be combined with an SME event. We will send more updates as the planning gets underway.

Advocacy Efforts

  • The Council led a delegation of seven companies to Vientiane in March for the 2015 Laos Business Mission. It was the first business mission to Laos in several years. The mission was mainly focused on relationship building and receiving updates from the Laos government. However the Council was able to follow up on the draft import tax for automobiles with the Ministry of Finance to ensure the regulation is transparent and that the U.S. private sectors views were heard.

View the Council's latest Laos updates

Malaysia

Major Developments in 2015

  • On July 2, the Wall Street Journal published an article that purportedly uncovered transfers of nearly US$700 million (RM2.6 billion) from the 1Malaysia Development Bhd (1MDB) government-linked fund to personal accounts of Prime Minister Najib Razak. The Prime Minister has said the amount was a political donation from the Middle East. Allegations of corruption and abuse of power have prompted calls for Prime Minister Najib’s resignation and caused debate within the United Malays National Organization (UMNO) party. More background can be found here.
  • On July 28 Prime Minister Najib announced a Cabinet reshuffle. Rifts had emerged between various officials over the handling of allegations made against the Prime Minister involving the 1MDB. The most notable change in the Cabinet was the removal of Deputy Prime Minister Muhyiddin Yassin, who had been increasingly critical of the Prime Minister’s handling of 1MDB. For a full overview on the changes to the Malaysian Cabinet, please click here.
  • The 2015 UMNO General Assembly took place on December 8 to 12, with 2,654 delegates from 191 divisions participating in the main assembly. The general assembly meeting can be considered a triumph for Prime Minister Najib, who is also UMNO President. The Prime Minister outlined the need for loyalty to the party leadership, a theme that was echoed throughout the general assembly by numerous delegates, in an attempt to reconcile and unite the party. Najib publically extended an olive branch to former Deputy Prime Minister Muhyiddin Yassin, stating that he chose to be magnanimous and act in line with Islam, shaking Muhyiddin’s hand. Following the handshake, Najib offered a firm warning to dissenting voices, stating "I want to firmly state that if any quarters continue to oppose and want to fight, you'd better be careful. This isn't personal anymore. They are not just opposing me as Najib Razak, the party president, but they are also clearly opposing reconciliation and Umno's decision."  Muhyiddin did not speak during the assembly. In the past, the UMNO deputy president officiated at the Youth, Women and Puteri (Young Women) wing assemblies. During the general assembly, Najib also spoke of building a political partnership with PAS (the Pan Islamic Party) on the basis of Muslim unity. Also of note, UMNO Youth chief Khairy Jamaluddin demanded that Putrajaya stop allowing further price increases, stating that Malaysians have reached breaking point and can no longer cope with the increasing costs of living. Delegates throughout the general assembly rose their concern for the Malaysian poor struggling to cope with price hikes, and demanded the government to provide immediate assistance.
  • The Malaysian government implemented its Goods and Services tax (GST) on April 1. The GST, administered by the Royal Malaysian Customs Department (RMCD), is a multi-stage tax payable by all the intermediaries in the production and distribution chains in Malaysia, with the tax burden falling on the final consumer. Click here for more background on the GST.

Looking Ahead

  • The TPP is expected to be debated by Malaysia’s Parliament in January 2016. While approval by Parliament is not necessary for the Prime Minister to sign the TPP, the debate will be watched closely by many Malaysians as the TPP does not have broad public support.

Advocacy Efforts

  • In advance of the implementation of the GST, the Council met with the Ministry of Finance (MOF) and the Royal Malaysian Customs Department to promote greater understanding and raise issues of concern surrounding the GST. The Council delivered a paper to MOF with questions and concerns regarding the TPP.

View the Council's latest Malaysia updates

Myanmar

Major Developments in 2015

  • The Opposition National League for Democracy (NLD) won a landslide victory in Myanmar’s historic fall elections, overturning the rule of the military-linked USDP and paving the way for Nobel Prize winner Aung San Suu Kyi to take control of government. The Council examined the results of the election here.
  • Myanmar’s cabinet and the USDP leadership were dramatically reshuffled on August 12 as security forces were employed to force Speaker of the House Thura U Shwe Mann from his party leadership role. The Council’s full update is here.
  • Flooding in Myanmar has affected more than 1 million people, and long-term rebuilding efforts are required. The Council is working with AmCham to catalogue the efforts U.S. companies are making to help support Myanmar in this time, and working to create a new program that will support flood damaged schools.  For more information and to find information about donating, please click here.

Looking Ahead

  • Myanmar’s new Parliament will sit January 31, after which they will choose among 3 nominees for President. The other two nominees will serve as Vice President. The NLD’s commanding electoral victory will allow it to control the election of the President and one Vice President. The other VP will be appointed by the military.
  • New Ambassador-Designate to Myanmar Scot Marciel has had his Senate Foreign Relations Committee confirmation hearing, and is awaiting Committee vote. Ambassador-Designate Marciel would be just the second U.S. Ambassador to Myanmar since the renewal of diplomatic relations.
  • The Council will be hosting events focused on sanctions and meeting the new NLD leaders in Yangon early in 2016. For more information contact Jay Martin at jmartin@usasean.org.

Advocacy Efforts

  • The Council maintained regular channels with the U.S. administration and congress on the effects of sanctions policy and advocated a message of avoiding “unintended consequences” to business. Treasury’s Office of Foreign Assets Control issued a general license authorizing incidental expenses related to export on December 7.
  • In June, the Council delivered a paper to Myanmar’s administration focused on “quick win” actions that could be taken without legislative input, and will revise this paper for the new administration.

View the Council's latest Myanmar updates

Philippines

Major Developments in 2015

  • The Philippines hosted APEC 2015, with the APEC CEO Summit held in Manila, and throughout the year highlighted SME/MSMEs and Inclusive Business.  As part of the U.S. APEC Business Coalition, the Council convened and chaired meetings with Vietnam’s H.E. President Sang, Malaysia’s H.E. Prime Minister Najib and Indonesia’s Minister of Trade H.E. Thomas Lembong. The Trans Pacific Partnership was discussed at all three meetings.  Separately, Philippines President Aquino discussed the TPP with President Obama.  Philippines consultations with three TPP countries will follow in Q1 2016.  To read the latest coverage of the Philippines planned actions related to TPP, read here.
  • President Benigno Aquino III, who was elected in 2010, has less than 6 months remaining in office. His key achievement is an economy tagged as “the most resilient economy” and no longer the “Sick Man of Asia.” Major credit rating agencies considered the Philippines as ‘investment upgrade’ with its annual average growth of 6.2% in the past 5 years.  Other developments: first round victory on its maritime issue against China; reforms effectively addressing corruption; 11 public-private partnership projects awarded projects with 14 more in procurement stage. On the legislation front, passed were the “Philippine Competition Act”; Sin Tax Reform Act; the Universal Health Program; and the Enhanced Basic Education Act of 2013. Preparations for the May 2016 elections have started, with leading Presidential contenders as former Sect. Mar Roxas, Senator Grace Poe, Vice-President Jejomar Binay and the controversial Mayor Rodrigo Duterte. Please read the latest coverage on the Philippines Presidential election bets here.
  • Key Philippine and foreign business groups collectively pushed for major legislation to open up the economy. If the Philippines intends to join TPP, allowing foreign ownership on certain industries is going to be a vital reform item.  To read the latest coverage of this effort for constitutional charter change, read here.

Looking Ahead

  • On January 29, 2016 US-ASEAN Business Alliance for Competitive SMEs will hold the SME Automotive Training in Manila, in partnership with UPS, PWC, the Philippine government and industry stakeholders.

Advocacy Efforts

  • The private sector-led Integrity Initiative was formed five years ago to promote ethical practices for companies especially when dealing with the government. Commencing with 100 signatories to the Integrity Pledge, it has since expanded to 3,004 corporations to include 45 government agencies and 202 business organizations. (The Council is a signatory.) It recently launched the official Integrity Certification System to enable an adherence system by its members. Regional partnerships in Thailand, Indonesia, Malaysia and Vietnam with various organizations have been formed.  To read the latest coverage, read here.

View the Council's latest Philippines updates

Singapore

Major Developments in 2015

  • The ruling People’s Action Party (PAP) scored a major victory in the national parliamentary elections held on September 11.  In addition to maintaining its 56-year incumbency, the party also managed to reverse its two-term slide in electoral performance.  The PAP won 69.86 percent of the popular vote, an increase of 9.72 percent from 2011.  The PAP also secured 83 out of 89 Parliamentary seats, up from 82.  Following its disappointing electoral showing in the 2011 elections, the traditionally-conservative PAP has shifted to the left on socioeconomic issues.  In particular, the party has considerably increased social spending to address popular dissatisfaction with the rising cost of living.  In 2014, the government introduced a multi-billion dollar healthcare scheme for the elderly.  The PAP government has also moved to curb widespread dissatisfaction over the city-state’s sizable immigrant population restricting the inflow of foreign workers.  It has, moreover, sought to restructure Singapore’s economy towards innovation and productivity growth, and away from its reliance on a large foreign workforce. The strong mandate given to the PAP government in this election is likely to increase market confidence in Singapore, especially given the economic slowdown in China and political uncertainty in the region.  Attention will now turn to what the PAP intends to do with its mandate in the next five years.  Some have speculated that Prime Minister Lee Hsien Loong intends to step down in the near-to medium-term, and is currently evaluating potential successors.
  • On September 28, Prime Minister Lee Hsien Loong unveiled a new and restructured Cabinet, two weeks after the People’s Action Party (PAP) won 69.9 percent of the vote in the September 11 general election. The key theme of the reshuffle is leadership renewal and preparing a fourth generation team that will be ready to lead Singapore after the next general election that is slated to take place in 2020.  To read the Council analytical update on the cabinet reshuffle, please click here. 

Looking Ahead

  • The biennial Singapore Airshow 2016 will be held from February 16 to 21, 2016 at the Changi Exhibition Centre. Billed as Asia’s largest and one of the most important aerospace and defense exhibitions in the world, the Singapore Airshow will be bringing together high-level military and government delegations and leading industry players from airlines, airport operators, aircraft manufacturers and related industries. France has been selected as the Feature Country because of its position as a key global aerospace services and products exporter, with an aerospace, defense security industry worth 47.9 billion euros. The U.S. was the first ever Feature Country when this series was introduced at the Singapore Airshow in 2014 to spotlight on countries which have strong and thriving businesses in the aerospace, defense, and aviation sectors. The Council is exploring organizing an inaugural Defense & Security Industry Mission, alongside this airshow. Bilateral engagements will be organized between the Ministers of Defense of key priority ASEAN countries and member companies. Please contact the Council’s Defense lead, Ezani Mansor (emansor@usasean.org) and Singapore Manager, Sunita Kapoor (skapoor@usasean.org) to register your interest.
  • Newly minted Finance Minister Heng Swee Keat will be delivering the Budget Statement in Parliament on March 24, 2016, about a month later than usual. Analysts expect value creation and encouraging innovation to be featured strongly in the 2016 edition as entrepreneurship is seen to be crucial in driving economic growth in the future and the need for local businesses to internationalize operations, and seek opportunities abroad due to the small domestic market.
  • According to the Monetary Authority of Singapore, analysts expect the Singapore economy to grow 2.2 percent in 2016, although the manufacturing sector is likely to continue contracting. The Asian Development Bank (ADB) has also lowered its forecast for Singapore to 2.3 per cent from 2.5 per cent. 

View the Council's latest Singapore updates

Thailand

Major Developments in 2015

  • November marked the 10th anniversary of the Council’s Thailand office. Thank you to our members for their ongoing support. Special thanks to the longtime Thailand Committee Chair, Chevron, and to Vice Chair AIG for generously providing office space. 
  • To counter the continued slow growth of its GDP, Thailand announced a series of economic incentive packages, including tax breaks to spur private investment across all domestic sectors. Additionally, the government announced more than $65 billion USD in major infrastructure projects, which are expected to help jumpstart the economy starting next year. 
  • Following a period of tumultuous reshuffling, martial law was lifted in April, and the government under Prime Minister Prayut Chan-o-cha is anticipating a stretch of political stability leading up to the 2017 elections.
  • In August there was a high-level change of personnel in all key economic ministries. Former Finance and Commerce Minister Somkid Jatusripitak was appointed the new lead of economic affairs, replacing Deputy Prime Minister Pridiyathorn Devakula.
  • In October, Ambassador Glyn T. Davies assumed office as the new U.S. Ambassador to Thailand. 

Looking Ahead

  • Drafting of the new Constitution is expected by the end of the year, with a period of negotiation, amendment, and a national referendum to follow in 2016.
  • The ICT Ministry has committed over US$100 million next year for driving flagship projects in support of the digital economy, including those related to infrastructure and human capital development.

Advocacy Efforts

  • The Council facilitated substantive engagements with high level government officials, including two meetings with Prime Minister Prayut Chan-o-cha, during the annual Business Mission in August, and during the UN General Assembly in New York in September.
  • The Council led productive engagements on behalf of member companies around several pieces of draft legislation, including on GMO’s, intellectual property, milk, customs, digital economy, tobacco, pharmaceuticals, and infrastructure.
  • The Council worked to promote the petrochemical cluster on the Eastern Seaboard, and to promote the R&D Centres of Excellence.
  • The US-ASEAN Business Alliance for Competitive SMEs organized three successful events in Bangkok, focusing on women entrepreneurs (March); supply chain readiness in the technology sector (June); and succeeding in the digital economy (October).
  • The Food and Agriculture Committee organized an industry mission to Bangkok in March, where members met with the Minister of Agriculture and Cooperatives, the Minister of Commerce, the Advisor to the Minister of Public Health, and the Deputy Secretary General at Thailand’s Board of Investment.

View the Council's latest Thailand updates

Vietnam

Major Developments in 2015

  • 2015 celebrates the twenty-year anniversary of the normalization of diplomatic ties between the U.S. and Vietnam. July 6 marked a milestone in U.S.-Vietnam bilateral relations with the Obama Administration welcoming the General Secretary of the Communist Party of Vietnam Nguy?n Phú Tr?ng to the United States for the first time. Tr?ng is the first ever serving chief of the Communist Party of Vietnam to be received in the United States. During the visit, the two governments signed significant bilateral agreements, including a Joint Vision Statement. On July 7, Vietnam announced that it had invited President Obama to visit Vietnam in the near future.
  • 2015 also saw the signing of the Trans-Pacific Partnership (TPP), the world’s largest and most extensive free trade agreement to date. On October 5, Trade Ministers from the 12 TPP member countries reached a final consensus on the agreement. When approved, the TPP pact will cut trade barriers and set common standards for what will be the world’s largest free-trade zone. Even before the agreement takes effect, Vietnam is expecting disbursed foreign direct investment to reach a record high this year after the government eased business regulations, attracting investors seeking to benefit from the TPP.

Looking Ahead

  • As we look ahead to 2016 for Vietnam, we will follow the progress and outlook of the TPP. For Vietnam, the full text of the deal, which was released in English on November 5, will need to be publicized and presented to the Party Central Committee before the approval process begins. The trade agreement must be approved by lawmakers in each of the 12 member countries. The conclusion of the TPP agreement after five years of negotiations has huge implications for Vietnam. The agreement will bring many benefits to a number of sectors and over time catalyze a wide range of macroeconomic and sector policy and regulatory reform processes. For the economy, the preferential access to large markets like the U.S, Japan, and Canada at lower import tariffs will expand opportunities for Vietnamese exports, including textile, garment, footwear, and seafood.
  • In January 2016, Vietnam will be holding the election for the National Communist Party Congress. In May 2016, Vietnam will hold its National Assembly Elections and a new government will be selected. Following these elections, the US-ASEAN Business Council will be organizing its annual Vietnam Business Mission in July 2016 to engage the new cabinet.

Advocacy Efforts

  • On November 23, the Council and Vietnam’s Ministry of Health signed a Memorandum of Understanding (MOU) on Partnerships to Strengthen Healthcare in Vietnam. The MOU covers areas of cooperation such as capacity-building of healthcare facilities, communications, organizational management, the healthcare insurance system, pharmaceuticals and medical devices, nutrition improvement, food safety and cosmetics. It calls for collaboration in the form of activities such as personnel training, expert delegation exchanges, and forums and workshops for sharing of information.
  • Other advocacy efforts in 2015 include:  Circular 200 - the Ministry of Finance is now drafting a circular to amend Circular 200;  Draft Amended Tax Law - the National Assembly has decided to postpone the discussion of the tax bill until March 2016;  Animal Antibiotic Issue - several engagements with Minister of Agriculture and Rural Development Cao Duc Phat to discuss this issue;  and Customs – on November 24, we organized a Customs workshop with the participation of Finance VM Do Hoang Anh Tuan, Deputy Director General of Vietnam Customs Vu Ngoc Anh.

View the Council's latest Vietnam updates