(VOVworld)- The ASEAN Community will be officially established on December 31^st. So far, ASEAN countries have completed preparations for the establishment of their single community. They have improved human resources, upgraded infrastructure, strengthened connectivity, narrowed development gap, facilitate trade flows, and fine-tuned legal corridors in line with their commitments to ASEAN.

ASEAN leaders adopted the Declaration on Establishing the ASEAN Community on November 22, 2015, in Kuala Lumpur, opening a new period of development for ASEAN. The ASEAN Community is the third of its kind in the world after the European Union and African Unity Organization. The ASEAN Community hopes to become an inter-governmental cooperation organization with broader and more binding connections based on the ASEAN Charter.

Opportunities and challenges

The establishment of the ASEAN Community brings about opportunities for its members, especially economic benefits. The 600 million population market will become a single market with free movements of services, goods, investment flows and skilled labor forces. The ASEAN Community will promote the regional connectivity and strengthen competitiveness to cope with emerging challenges around the globe and in the region where China and India are emerging economies. In the last three years, ASEAN has attracted a great amount of foreign direct investment given sharp decline of global FDI and unstable economic growth. ASEAN has become the most attractive destination for FDI thanks to improved market, active integration and the establishment of the ASEAN Community.

ASEAN is facing a number of challenges including development gaps between two groups of ASEAN countries which is likely undermine efforts to build a regional free trade area and the realization of its commitments with its partners. It’s also hard for ASEAN countries to harmonize national interests with interests of the community.

Getting ready

ASEAN countries have undertaken several specific measures to tap their potential in merging into the Community. Singapore has focused on promoting the roles of research centers and enterprises. Myanmar and the Philippines have increased assistance for small and medium sized enterprises. Thailand has reformed it services, trade and investment, implemented the program “A National Window”, “An ASEAN Window”, and developed the social security network. Cambodia has promoted one-door trade policy to attract investment and loosened the investment and ownership laws. Cambodia has recently permitted foreign investors to hold 100% of shares of companies in Exclusive Economic Zone in comparison with the rate of 70% applied in some ASEAN countries. Vietnam has strengthened trade facilitation through applying e-commerce and one-door policy, reforming administrative procedures, simplifying licensing and certification procedures, and aiming at service liberalization. Vietnam has revised Laws on investment, trade, and enterprises to comply with its commitments with ASEAN.

The ASEAN Secretariat has mapped out a detailed plan for the ASEAN Economic Community introducing the schedule to implement 45 key activities to promote the liberalization and trade and investment facilitation in various fields. These preparations aim at ensuring the timely establishment of the ASEAN Community as well as its effective operation.