BBC News: Asean pushes for regional economic integration

Summary

The ASEAN Economic Community (AEC) aims to create a single market with free movement of labor and goods across Southeast Asia. While the AEC has already facilitated trade, such as car manufacturing, its progress on labor mobility remains a work in progress. Many professions, including hairdressing and healthcare, are still restricted by local regulations, and foreign workers already play a significant role in industries like construction. Despite challenges, the integration of ASEAN countries into a single market continues to evolve, benefiting industries and encouraging economic cooperation across the region.

Takeaways

• 😀 ASEAN's Free Trade Agreement has enabled globalized economies in Southeast Asia, making products like cars more accessible across countries.
• 😀 The ASEAN Economic Community (AEC) aims to deepen integration by creating a single market with free movement of labor and goods, beyond the current free trade agreements.
• 😀 For example, hairdressing is one of 39 professions that can now be accessed across ASEAN countries, but it’s still not completely free for all labor categories.
• 😀 Some professions, like doctors, dentists, and nurses, still require individuals to pass local licensing exams in the country where they wish to practice.
• 😀 ASEAN Economic Community’s implementation has not yet fully liberalized labor markets, as workers still need to meet country-specific licensing and certification requirements.
• 😀 The AEC is a work in progress, and even though economic integration has begun, many barriers still exist for professionals like architects who cannot practice freely in all ASEAN countries.
• 😀 Foreign workers, especially from neighboring ASEAN countries, are already integrated into industries like construction and offices in Thailand, despite the presence of local restrictions.
• 😀 Thailand’s workforce heavily relies on foreign workers, with a notable absence of Thai nationals in technical and construction roles.
• 😀 Many construction sites in Thailand display signage in multiple languages, such as Thai, English, and Khmer, highlighting the reliance on foreign labor.
• 😀 The ASEAN Economic Community is working towards a single market, but much of the easier integration, particularly in manufacturing, has already taken place, such as the automotive industry.

Q & A

What is the ASEAN Free Trade Agreement (AFTA) and how does it benefit the region?

The ASEAN Free Trade Agreement (AFTA) allows manufacturers to set up factories in one ASEAN country and sell products to the entire ASEAN market of 600 million people without tariffs. This promotes trade and economic integration across the region.

What does the ASEAN Economic Community (AEC) aim to achieve beyond the ASEAN Free Trade Agreement?

The ASEAN Economic Community (AEC) aims to create a single market with free movement of labor, goods, services, and capital. It seeks to go beyond AFTA by promoting deeper integration, including labor mobility and more liberalized professions.

How has labor mobility been addressed under the AEC?

The AEC allows for the free movement of skilled labor among ASEAN countries, but there are still local tests and certifications required. For example, medical professionals like doctors, dentists, and nurses must pass local tests in each country to practice legally.

Which professions have been liberalized under the AEC?

The AEC has liberalized eight professions, including medical, engineering, and architecture. However, some professions still require passing local tests and meeting country-specific licensing criteria.

Why is hairdressing mentioned in the context of ASEAN labor mobility?

Hairdressing is one of the 39 employment categories that are currently restricted to certain ASEAN nationals. While some professions are liberalized, hairdressing remains one that is limited in terms of who can work in Thailand under the AEC.

Has the integration of ASEAN countries into a single market already begun?

Yes, much of the easier integration has already occurred. For instance, in the automotive industry, car manufacturers can set up factories in one country and sell throughout the ASEAN region. However, the full integration into a single market is still a work in progress.

What challenges do businesses face when dealing with foreign labor in ASEAN countries?

One challenge businesses face is the language barrier and the complexity of managing a multilingual workforce. Signs and communications in multiple languages, such as Thai, English, and others, are common in sectors relying heavily on foreign labor.

Why might the liberalization of labor and professions under the AEC not lead to an immediate influx of foreign workers?

Although the AEC allows for greater labor mobility, the integration process is gradual. Additionally, many businesses, like those in construction and office sectors, already rely on foreign workers, so a sudden increase in competition is not expected.

What is the status of architecture as a profession under the AEC?

Architecture is one of the officially liberalized professions under the AEC. However, it is still subject to specific licensing and local regulations that may vary from country to country within ASEAN.

What impact has ASEAN integration had on Thailand's labor market?

ASEAN integration has made Thailand's labor market more reliant on foreign workers, especially in sectors like construction and office work. Thai businesses are increasingly dependent on workers from neighboring countries to fill labor shortages.