INTERNATIONAL TRADE
SPOTLIGHT ON: ASEAN
A new addition to Business Network magazine, ‘Spotlight On’ focuses on opportunities in the global export markets. The first in the series looks at Southeast Asia following the coming together of the ASEAN Economic Community in December, marking a new era of integration.
ASEAN (Association of Southeast Asian Nations) is a political and economic bloc. It comprises Singapore, Brunei,
Malaysia, Thailand, Indonesia, Philippines, Cambodia, Vietnam, Laos and Myanmar. Formed in 1967 to bring peace and
India is the last BRIC standing
India has been described as the ‘last BRIC standing’ as its economy beat China’s for the second consecutive year. And accountancy firm PwC has
predicted it will be “the economic shining star” over the next few years. While Brazil stumbles from one
crisis to the next and heads into its deepest recession in 25 years, Russia suffers sanctions and a drop in the value of its main export, energy, and China has seen its once spectacular double-figure growth continue to fall through single figures, India has remained strong. The sub-continent’s growth in
2015 was 7.7% compared to China’s 6.9%. Unlike China, India’s economy isn’t reliant on exports and as a major importer of energy it has benefited where Russia has suffered from lower energy prices. But India is a long way from
becoming an industrial super- power. Nearly half its jobs are based in agriculture and upwards of 170 million residents live on less than £1.50 a day. Under the leadership of Prime Minister Narendra Modi, however, India continues to grow. Forecasts are that growth will be 7.5-8% in 2016. Since his election in 2014, Modi
has built support for reforms to the country’s business climate, to trigger rapid economic development and to establish much more efficient government. This has seen an upsurge in
foreign investment. Efforts to lift restrictions on foreign direct investment (FDI) in the defence, railway, construction, and retail sectors have already made a difference. Total FDI surged 27% in
‘East Midlands businesses would be silly not to take advantage of the growing opportunity India offers’
the 2014–15 fiscal year and it will climb higher this year. Modi has also raised India’s
global profile and cemented better relations with Indian Ocean neighbours. Most importantly, he has pushed past traditional suspicion of regional rival China to engage Beijing and draw substantial Chinese corporate investment. The Chamber’s Head of
International Trade, David Pearson, said: “Modi is doing an incredible job of driving inward investment and although the starting line is much lower than other BRIC countries, the fact that India’s growth is stable and consistent speaks volumes for his efforts. East Midlands businesses would be silly not to take advantage of the growing opportunity India offers.” East Midlands’ exports to India
amounted to £210m in the first three quarters of 2015, an increase of nearly 40% on the same period in 2014. Prospects look encouraging for 2016 too, with growth anticipated in a range of sectors.
East Midlands Chamber, with the UK India Business Council, is hosting a free breakfast seminar, on exporting to India, at the Nottingham Belfry Hotel on 24 February. Register online at
www.emc-dnl.co.uk/events
prosperity to the region, its vision has evolved over time, culminating in a joint commitment in 2007 to accelerate the forming of an ASEAN Economic Community (AEC) by 2015. The leaders of the ten countries signed an agreement in November
to formalise the AEC as a single entity from the end of 2015. Aiming to foster an integrated production space with free
movement of goods, services and skilled labour, the objectives of the AEC are both ambitious and exciting. With economic growth across the region predicted to average five
per cent over the next decade, a burgeoning domestic market is developing, bringing increased consumer spending and a demand for British goods. It means Southeast Asia continues to be an appealing export
market for East Midlands companies. East Midlands’ exports to the region amounted to £1.67bn in 2014,
with potential for that to grow significantly in the coming years. With 8.8% of the world’s population and already the world’s
seventh-largest economy as a single entity, ASEAN cannot be ignored. During his visit to the region in July, David Cameron emphasised the opportunities to be found in Southeast Asia, saying: “Just a decade ago, our relationship was one built on aid, now it is one of trade. Last year UK exports were up ten per cent.” David Pearson, the Chamber’s Head of International Trade, said: “It’s
ironic that as Britain faces a vote on whether to remain part of the European economic and political bloc, ten countries in Southeast Asia have cemented their unity as a single entity. “With the growth predicted for the region, ASEAN is going to be a
force to be reckoned with and East Midlands businesses should not underestimate the opportunities that exist there.”
If you are looking to export to this region and need help and advice or would like to find out more about our region-specific events please contact Giles Jones on 0115 9578757 Ext. 2250 or email:
giles.jones@
emc-dnl.co.uk
Students get export lesson
Ten students from a Warsop secondary school were among the first to take part in an East Midlands Chamber initiative to drive future exports. The course provides an introduction to exporting, giving delegates an
overall picture of how the elements of international trade fit together. Scott Knowles, the Chamber’s Chief Executive, said: “Research shows
that confidence among exporters is rising but companies are struggling to recruit staff with the skills necessary to ensure success. “Businesses and schools need to work more closely together to ensure
students have a full and firm understanding of the business world, the opportunities it presents and the skills that will help them to get ahead, including the export journey and foreign languages.”
For more information on exporting services, trade missions and events visit
www.emc-dnlco.uk/international-trade or get smart and use this QR code
business network February 2016 19
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