The emergence of an integrated market with a population of 600 million — third largest in Asia following China and India — is expected to encourage Japanese companies to accelerate direct investment into the countries that make up the Association of South East Asian Nations (ASEAN).
Upon formation of the ASEAN Economic Community (AEC) and the expected further integration of the ASEAN economies, Japanese companies are likely to expedite development of markets there and realign production bases, according to researchers.
Under the AEC, formed at the end of last year, ASEAN member counties — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — are to proceed with further integration of their economies, aimed at the creation of a single market and production base by securing a free flow of goods, services, investment and workers.