yseali information package

ASEAN ECONOMIC COMMUNITY - THE WORLD NEXT DOOR

with the support of

Ho Chi Minh City, Vietnam

August 3-7, 2015

THE 2015 FULBRIGHT YSEALI SUMMER SCHOOL

U.S. Alumni Club in Ho Chi Minh City

DIRECTION FROM T78 GUEST HOUSE TO FULBRIGHT ECONOMICS TEACHING PROGRAM (FETP)

Registration time and receive materials: 17:00 at the lobby of T78 Guest House.

All of participants are required to stay in T78 Guest House during the Summer Camp, from 15:00 August 2 to 9:00 August 8, 2015.

Hẻm 115

Addresses: T78 Guest House, 145 Ly Chinh Thang, Ward 7, District 3, HCMC

FETP: 232/6 Vo Thi Sau, Ward 7, District 3, HCMC

Table of Contents

PART I - AGENDA AND LOGISTICS INFORMATION ................................................ 2

CONTACT INFORMATION .................................................................................................... 3

EXPECTATIONS/REQUIREMENTS ...................................................................................... 4

AGENDA ................................................................................................................................... 5

COUNTRIES ASSIGNED FOR GROUPS ............................................................................. 10

PART II – MATERIALS AND ASSIGNMENTS............................................................... 11

Globalization, ASEAN Economic Community and Vietnam.................................................. 12

Assignment 1 - Advising the Head of State: Opportunities and Challenges in joining the AEC

.................................................................................................................................................. 17

Assignment 2 - Consultancy for an organization: Vision for integration into AEC ................ 18

Negotiation Simulation: ASEAN Summit 2015 ...................................................................... 20

Policy debate at the ASEAN Secretariat: Challenges and roadmap to building a sustainable

AEC.......................................................................................................................................... 25

PART III - BACKGROUND MATERIAL ......................................................................... 27

PART I - AGENDA AND LOGISTICS INFORMATION

CONTACT INFORMATION

Email

Program coordinators:

Nguyễn Minh Trang

Jordan Feri

[email protected]

[email protected]

Room and transport: Đỗ Thị Thanh Triều [email protected]

Logistics: Võ Thị Thảo Nguyên [email protected]

Learning materials: Hoàng Văn Thắng [email protected]

Field trip: Nguyễn Đỗ Phương [email protected]

Visit to American Center: Lê Thị Kim Muôn [email protected]

Overall management: Huỳnh Thế Du [email protected]

mailto:[email protected]







EXPECTATIONS/REQUIREMENTS

1. YSEALI SUMMER SCHOOL/ OBJECTIVES:

Strengthening leadership development and networking in ASEAN.

Deepening engagement with young leaders on key regional and global

challenges.

Consolidating knowledge about issues relating to the ASEAN Economic

Community (AEC) and sharing experience and perspectives to help Vietnam

reach its fullest potential.

Advancing people-to-people ties between the United States and young and

emerging Southeast Asian leaders.

Enhancing fundamental soft skills such as creative thinking, communication,

negotiation, teamwork and adaptation through a variety of soft skill trainings,

inspirational speeches, games, and competitions.

2. GENERAL EXPECTATIONS/REQUIREMENTS:

Students will be required to be active learners in classroom and participate in

all assigned activities.

Students must complete all readings and assignments by deadlines and attend

all class meetings.

Class attendance is mandatory. Absences because of sickness or other

emergencies can be excused with solid evidence.

Any form of academic misconduct will result in dismissal and withdrawal of

the course certificate. This includes cheating on assignments, plagiarism,

sharing individual homework assignments, and falsifying data.

All cellphones and smart equipment must be turned off during class time.

Bringing laptops/tablets for teamwork and assignments is encouraged, but they

will not be allowed to be used during class.

AGENDA

Sunday, August 2: Welcome Dinner

Time: 18:00

Venue: T78 Guest House

Monday, August 3: An Overview of the Global, Regional and Local Context,

Opportunities and Challenges for International

Integration

Opening and Welcome (8:30 – 9:00)

Opening remarks:

Dr. Huynh The Du, Academic Director, Fulbright Economics Teaching Program (FETP)

Rena Bitter, Consul General Ho Chi Minh City

Dr. Dinh Cong Khai, Director, Institute of Public Policy

Session 1 (9:00 – 10:15): Program Introduction and Expectations

Program Introduction and Expectations: Representative of the organizer

Inspirational speeches (40’):

o Building a Career in Vietnam: Dr. Tran Vinh Du, President, Broward College,

Vietnam

o Contributing to the Development of Vietnam: Prof. Thanh Truong, Utah

University

Group photos and Break (10:15 – 10:35)

Session 2 (10:30 – 11:45): The International, Regional and Vietnamese Economy

Presenter: Dr. Vu Thanh Tu Anh, Research Director, FETP

Lunch (11:45 – 13:00)

Session 3 (13:00 – 14:15): Introduction to the ASEAN Economic Community:

Opportunities and Challenges

Presenter: Dr. Huynh The Du, Academic Director, FETP

Session 4 (14:15 – 15:30): Globalization: Why Institutions Matter?

Presenter: Prof. Pham Duy Nghia, Senior Faculty, FETP

Break (15:30 – 15:45)

Session 5 (15:45 – 17:00): Panel: The Roles and Perspectives of the Public Sector,

Private Sector, and Civil Society in Global Integration

Panelists:

o Mr. Doan Huu Duc, Founder and President, Vietnam Consulting

Group

o Mr. Diep Dung, CEO, HCMC Finance and Investment Corporation

o Prof. Pham Duy Nghia, Senior Faculty, FETP

o Mr. Bui Van, Editor-in-chief, FBNC TV Chanel

Grouping and Planning (17:00 – 17:30)

Dinner and Break (17:30 – 19:00)

Game: Night confident

Session 6 (19:00 – 21:00): Group meeting to prepare for next morning presentations

Assignment 1 - Advising the Head of State: Opportunities and Challenges for joining

the AEC

Tuesday, August 4: Leadership and Integration

Session 1 (8:30 – 9:30): Teamwork to prepare for presentations

Teams and facilitators

Session 2 (9:30 – 11:45): Group Presentations

Two groups in 2 rooms / 8 teams in each group

Judges

Lunch (11:45 – 13:00)

Session 3 (13:00 – 14:15): Leadership - Building vision and mission for organization

Presenter: Mr. Gian Tu Trung, Founder and Chairman, PACE School

Session 4 (14:15 – 15:30): Leadership - Navigating an organization for integration

Presenter: Prof. Paul Brown, Monarch Business School Switzerland

Break (15:30 – 14:45)

Session 5 (15:45 – 17:00): Panel: Paving the Career Path

Panelists:

o Ms. Do Thi Thuy Hang, General Manager, iVIVU

o Ms. Le Thi Quynh Tram, Director, Lower Mekong Public Policy

Initiative

o Ms. Van Nguyen, Founder and Managers, HANDICONNECT

o Mr. Nguyen Tan Vu, Film Director, Visiting Lecturer, Hoa Sen

University

o Mr. Ben Wilkinson, Director, Trust for University Innovation in

Vietnam

Group Meeting and Planning (17:00 – 17:30)


Games: Trust fall and the needle war

Session 6 (19:00 – 21:00): Culture events

Watching Basketball at Saigon Heat (Week 1)

Broadway! Channeling Your Inner Performer (Week 2)

Wednesday, August 5: Field Trip

Session 1 (8:00 – 12:00): Visit to American Center

Lunch (12:15 – 13:30)

Session 2 (13:45 – 16:30): Visit to Intel

To explore American culture and the U.S. economy



Session 3 (19:00 – 21:00): Group meeting to prepare for presentation the next morning

Assignment 2 - Consultancy for an organization: Vision for integration into the AEC

Thursday, August 6: Soft Skills

Session 1 (8:30 –9:30): Teamwork to prepare for presentations

Teams and facilitators

Break (9:30 – 9:45)

Session 2 (9:45 – 11:45): Group Presentations

2 rooms / 8 groups in a room

Judges

Lunch (11:45 – 13:00)

Session 3 (13:00 – 14:15): Teamwork and presentation skills

Presenter: Mr. Nguyen Thanh Son, President, SAGE

Session 4 (14:15 – 15:30): Negotiation skills

Presenter: U.S. Consulate officer

Break (15:30 – 15:45)

Session 5 (15:45 – 17:00): Branding Me

Presenter: Mr. Nguyen Duc Son, Senior official, SAGE


Game: Solving problems


Session 6 (19:00 – 21:00): Group meeting to prepare for the negotiation simulation on

Friday morning

Friday, August 7: Negotiation and Debate

Section 1 (8:30 – 11:45): Negotiation Simulation with a break from 10:00- 10:15

2 rooms (2 groups) /8 teams in a group

Lunch (11:45 – 13:00)

Section 2 (13:00 – 15:00): Debate (the best four teams move on to the semi-finals)

Subject for the semi-finals: Challenges for building a sustainable AEC

Subject for the final: Road map to building a sustainable AEC

Break (15:00 – 15:15)

Section 3 (15:15-17:00): Closing

Inspirational speech (20’): Paving a career path: Mr. Paul Nguyen, CEO, Manulife

Award and Certificate presentation ceremony

Closing speech (20'): Mr. Nguyen Xuan Thanh, Director, FETP

Farewell party (17:00-20:00)

Venue: FETP

COUNTRIES ASSIGNED FOR GROUPS

Table A

Group 1 - Vietnam

Group 3 - Malaysia

Group 5 - Singapore

Group 7 - Indonesia

Group 9 - Thailand

Group 11 - Philippines

Group 13 - Cambodia

Group 15 - Myanmar

Table B

Group 2 - Vietnam

Group 4 - Malaysia

Group 6 - Singapore

Group 8 - Indonesia

Group 10 - Thailand

Group 12 - Philippines

Group 14 - Cambodia

Group 16 - Myanmar

PART II – MATERIALS AND ASSIGNMENTS

The materials in this section were prepared by:

Trung Tran, MPP candidate, Harvard Kennedy School

Jordan Feri, fourth year student, Harvard University

Trang Nguyen, fourth year student, Tufts University

With the supervision and advisory of:

Dr. Du Huynh, Academic Director, FETP

Ms. Lan Hoang, Academic Affairs Manager, FETP

The materials disclosed herein have been prepared for the 2015 Fulbright YSEALI Summer

School and do not necessarily reflect the views of the U.S. Mission in Vietnam, the Fulbright

Economics Teaching Program, or the Institute of Public Policy – University of Economics Ho

Chi Minh City.

Globalization, ASEAN Economic Community and Vietnam

You may not realize it, but you are always connected. You read this text in English. You use

Skype to talk with your sister studying in Japan. You see more and more foreigners coming to

Vietnam to visit or work - and you feel comfortable hanging out with them. Regardless of

where you are, it is now relatively easy to reach out to the world and for the world to reach

out to you. There are roughly 200 countries in the world; none of them live alone, and they

have been increasingly integrated and inter-dependent to each other. We call this

phenomenon “globalization”.

Globalization - from 1.0 to 3.0

Thomas L. Friedman, a three times Pulitzer-winning journalist for the New York Times, has

written about the modern history under the lens of globalization. Globalization 1.0, as he

called it, was a period from 1492 – when Columbus discovered the American continent- until

around 1800. The world was shrunk from a size large to a size medium. In this era, countries

and governments were the driving force to make the world closer to each other. The primary

questions to be answered were: “Where does my country fit into global competition and

opportunities? How can I go global and collaborate with others through my country?”

The next great era, Globalization 2.0, was from 1800 to 2000, interrupted by the Great

Depression and the two World Wars. This time, the world was shrunk from a size medium to

a size small. Here, the multinational companies went global for markets, natural resources,

and labor, serving as the motor for global integration. The questions in this era were: “Where

does my company fit into the global economy? How does it take advantage of the

opportunities? How can I go global and collaborate with others through my company?”

How about after 2000? Friedman called the world after the Millennium Globalization 3.0,

where neither nations nor companies, but individuals – each one of us – became the main

catalyst for international connectedness. The world has shifted from a size small to bite-sized,

where geographical distant holds much less importance than before. What makes this era

significant to the former eras is that the driving forces are diverse. “Individuals” here include

people who are non-Western, non-white, who are very much empowered to prosper. Any

citizen in the world today will face these questions: “Where do I fit into the global

competition and opportunities of the day and how can I, on my own, collaborate with others

globally?”

Why should economies and societies connect to one other? Globalization creates great

benefits for everyone. First, the process itself promotes economic growth. Countries can

focus on producing goods or services for which they have the best advantages, and trade in

the global marketplace. International corporations can do business with local partners whose

strengths complement their own. Second, exchanging information or cultural values increases

welfare, happiness, and mutual understanding between societies, thus promoting world peace.

Third, nations cooperate with each other to address common concerns like global warming,

pandemics and terrorism - these are big challenges that no single country can overcome by

itself. Globalization, in that sense, is both a fact and an imperative for everyone.

Global versus regional free trade

The principle of globalization can be best illustrated by the formation of the World Trade

Organization (WTO). Today, the WTO remains the world’s only organization supervising

global trade, setting ground rules for international commerce. The WTO’s origins trace back

to the increase in trade negotiations from 1986-94. Beginning with 23 nations, the General

Agreements on Tariffs and Trade (GATT) grew both in size and attention. After several

rounds of negotiations, the last round of GATT in 1994 established the WTO as its

descendant, involving more than a hundred different nations. The WTO seeks to symbolize

the principle of globalization by building a common playground for all states. However, the

organization’s core structure underlies a sizable dilemma. The Doha Round is the latest round

of trade negotiations among the WTO membership, which aim to lower trade barriers on

several aspects. The Round was officially launched at the WTO’s Fourth Ministerial

Conference in Doha, Qatar, in November 2001. However, it remains unconcluded until this

day. With more than 157 member governments, the talks cover widely differing interests that

prove difficult to reconcile.

Despite major achievements, the WTO’s size undermines its ability to effectively address

regional disputes and implement coherent development policies. In recent years, many people

organized anti-globalization movements, pointing out the negatives of globalization, such as

growing economic inequality, environmental concerns, cross-border pandemics, and the loss

of cultural diversity. Internationally, the phenomenon we see is the world not just becoming

globalized, but also regionally integrated. Many view this as an alternative to globalization;

many see it as a “softer” version of globalization. Nations that share geopolitical

characteristics have incentives to cooperate with each other and thus form their own regional

organizations.

Among the existing regional organizations, the European Union (EU) is the most developed

and heavily integrated. Arguably, the Association of South East Asian countries (ASEAN)

stands next in terms of deep integration. Major RTAs such as the EU, the North American

Free Trade Agreements (NAFTA) or ASEAN enable states to integrate at their own paces.

The advantages of RTA reside in its members’ geographical, economical, political and

cultural proximities. These resemblances facilitate decision-making and integration among

countries. Consequently, RTAs can join the international trade negotiations as a whole, and

enhance member countries’ bargaining power in multilateral negotiations because of the

enlarged size of the negotiator.

Such is also the case of the proposed Trans-Pacific Partnership (TPP) agreement between the

United States and several Asian countries. Although TPP agreements only apply to some

ASEAN members, the organization as a whole gets access to new opportunities. Under

overlapping rules, ASEAN members could take advantage of preferential arrangements given

to Singapore, Malaysia, Brunei and Vietnam, regional trade liberation paved way for global

integration – reaching global trade consensus through “bottom-up” rather than “top-down”

mechanisms.

Regional integration – ASEAN Economic Community

Established in 1967, ASEAN consists of ten Southeast Asian countries: Brunei, Cambodia,

Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

ASEAN differs from the EU in the sense that it is still a cross-governmental organization that

respects national sovereignty. Whereas EU leaders’ power is limited under a single monetary

union, ASEAN member states have more flexibility in dealing with their countries’ matters.

After almost five decades, ASEAN has achieved great milestones, especially in economic

cooperation, starting with the ASEAN Free Trade Area (AFTA/CEPT) in 1992. ASEAN also

has a vision to create an ASEAN Economic Community (AEC) by 2015 as one pillar

alongside with the two others: political and security cooperation, and socio-cultural cohesion.

When the 10 member economies become one, with a market of over 600 million consumers

and combined GDP of nearly US$3 trillion, ASEAN is offering a future of prosperity and

stability. The AEC is one of the foundations of that future. Member countries, with all their

differences and diversity, would complement each other through an ASEAN-wide supply and

production network. As a result, the whole bloc would gain global comparative advantages as

well as attract trade and investments.

What are the characteristics of AEC? The AEC, itself, rests on four pillars:

1. A single market and production base, characterized by removing barriers for the free flow

of goods, services, investments, skilled labor, capital, and measures to support integration.

2. A competitive economic region: improving the competitiveness of ASEAN and its

individual countries. In particular: ASEAN connectivity on railroad, land road, through air,

energy as well as the Mekong cooperation between Cambodia, Laos, Myanmar, Thailand and

Vietnam.

3. Mutual assistance in narrowing the development gap: as one example, more developed

nations such as Singapore consider voluntarily supporting the less developed countries,

including Cambodia, Laos, Myanmar and Vietnam, via knowledge-sharing and capacity-

building.

4. Integration with the global economy: ASEAN has entered negotiations and reached

agreements in establishing a number of regional Free Trade Areas with its partners: China in

2002 (use this format for the rest…), India (2003), South Korea (2005), Japan (2008),

Australia and New Zealand (2009).

ASEAN has signed FTA agreements with its biggest partners in the region: ASEAN - India,

ASEAN - China, ASEAN - South Korea, ASEAN - Japan and ASEAN – Australia - New

Zealand. Still in negotiations are the Regional Comprehensive Economic Partnership (RCEP,

also called ASEAN plus six) and ASEAN – Hong Kong. Being one of the fastest growing

regions in the world, ASEAN will, in fact, both compete and cooperate with other big

economies in Asia, especially China and India, while also serving as a complementary

economic bloc with developed economies in the region such as Japan and South Korea.

Vietnam’s process of international integration

War-torn Vietnam began its quest for international integration in 1986. With the 6th

Party

Congress’s Doi Moi process, the country embraced the mottos: “ready to become friends and

trusted partners to all countries” and “proactively in regional and international integration”.

Over the years, Vietnam has become a significant player in the international economy.

Vietnam has since established bilateral diplomatic relations with more than 170 countries and

has cooperated in trade and investments with more than 230 economies globally. It has

established more than 90 bilateral free trade agreements, nearly 60 trade and investment

agreements, along with 54 double taxation relief agreements.

The international integration of Vietnam has been accelerated and reached another level

through signings on multilateral economic cooperation as well as accession to regional and

international economic organizations, in particular Asian Development Bank (ADB), the

International Monetary Fund (IMF) and the World Bank (WB). These achievements are the

results of a gradual process of foreign policy implementation. Most notably, in July 1995

Vietnam made a breakthrough move towards economic integration by becoming a member of

ASEAN. As a result, the country became part of the ASEAN Free Trade Area (AFTA) in

January 1996, inheriting the full benefits of the community’s membership.

In 1996, Vietnam also became one of the founding members of the Asia-Europe Meeting

(ASEM), a forum to enhance relations and various forms of co-operation between members

of the European Union (EU) and its Commission, members of the Association of Southeast

Asian Nations (ASEAN), and China, Japan, and South Korea.. In 1998, Vietnam became

member of the Asia Pacific Economic Cooperation (APEC), a forum for Pacific Rim member

economies that promotes free trade throughout the Asia-Pacific region. At the Mekong Sub-

region, Vietnam is an active and important member of various economic cooperatives,

including the GMS, CLMV, ACMECS, ACD, MGC, Mekong-Japan, and the Lower Mekong

Initiatives.

On 11 January 2007 when Vietnam reached a significant milestone when it concluded its 11

year negotiation for accession to the World Trade Organization. After 20 years of Doi Moi,

from a Vietnam has officially become an integrated member of the global economy.

What is next for Vietnam?

There are a number of other FTAs that Vietnam is currently negotiating, including the RCEP

(ASEAN+6), Vietnam – EU, Vietnam – South Korea, Vietnam – European Free Trade

Association (EFTA). Today, the most modern and important FTA under negotiation is the

Trans-Pacific Partnership (TPP) between 12 Pacific Ocean countries. The TPP is considered

the next generation of FTA, which requires much higher conditions and standards for

membership. TPP negotiations are expected to be concluded late 2015 or early 2016.

It is important to note that signing FTA agreements is just a starting point. After years of

pursuing broader integration, it is now time for deeper integration. That means domestic

reforms are needed so that Vietnam’s economy can establish itself as a firm component of the

global supply chains and global economy. Vietnam is considering and actually implementing

a series of institutional reforms as well as social policies in order to fully capture the benefits

of economic integration and lessen its negative impacts.

What does it all mean to us?

As mentioned before, we are moving to a globalized world. This means that we need to be

able to adapt to the fast and ever-changing whims of an international society. Whether

globalization is an opportunity or a curse, we as a country should be prepared to make

significant changes. This means that, at the very least, our citizens need fluent English skills,

the ability to navigate across cultures and the resources to live up to international standards.

https://en.wikipedia.org/wiki/European_Union

https://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations

https://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations

https://en.wikipedia.org/wiki/China

https://en.wikipedia.org/wiki/Japan

https://en.wikipedia.org/wiki/South_Korea

As a country, Vietnam is in the beginning stages of full international integration. Not all

countries or peoples in the world know about Vietnam. That means each one of us will need

to be a cultural ambassador for the country. Not only do we need to learn from the world, but

we also need to tell the world who we are.

International integration is not just about opportunities. Challenges will arise to Vietnam as

well as to each one of us individually. Integration means joining a global playing field. If we

were not prepared, we would not be able to compete internationally and might end up losing

on our home ground. Globalization presents the risk of losing cultural uniqueness – the

values that have been deeply rooted in our society for thousands of years.

Looking to the future, the establishment of the AEC in 2015 would bring about specific

implications for us. Maybe now it is a good time to ask ourselves these questions: “What

should I do now to prepare for my future career in the ASEAN community? How would I be

able to compete and cooperate with other South East Asian nationals in this globalized

world? Have I fully understood myself and the cultures of my friends? How would I

contribute to Vietnam as well as the ASEAN community as the whole?”

REFERENCES

"Vietnam in ASEAN: Toward Cooperation for Mutual Benefits." Vietnam in ASEAN: Toward

Cooperation for Mutual Benefits. Web. 22 July 2015.

Junji, Nakagawa. "“With Great Power Comes Great Responsibility” 100 Years after World

War I – Pathways to a Secure Asia." Swp-berlin.org. German Institute for International and Security

Affairs, 24 June 2014. Web. 22 July 2015. <http://www.swp-

berlin.org/fileadmin/contents/products/projekt_papiere/BCAS2014_Junji_Nakagawa.pdf>.

Junji, Nakagawa. "“With Great Power Comes Great Responsibility” 100 Years after World

War I – Pathways to a Secure Asia." Swp-berlin.org. German Institute for International and Security

Affairs, 24 June 2014. Web. 22 July 2015.

Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-first Century. New

York: Farrar, Straus and Giroux, 2005. Print.

Rowe, John Carlos. "Mark Twain's Critique of Globalization (Old and New) in Following the

Equator, A Journey Around the World (1897)." Arizona Quarterly: A Journal of American Literature,

Culture, and Theory Arizona Quarterly (2005): 109-35. Print.

Tung, Nguyen Vu. "Vietnam´ S Membership of ASEAN: A Constructivist Interpretation."

Contemporary Southeast Asia (2007): 483-505. Print.

Hew, Denis, and Hadi Soesastro. "Realizing the ASEAN economic community by 2020:

ISEAS and ASEAN-ISIS approaches." ASEAN Economic Bulletin (2003): 292-296.

Soesastro, Hadi. "Accelerating ASEAN economic integration: Moving beyond AFTA."

Jakarta: Centre for Strategic and International Studies (Economics Working Paper Series WPE 090)

(2005).

Assignment 1 - Advising the Head of State:

Opportunities and Challenges in joining the AEC

Background: A few months ago, a national election took place in your assigned country. A

new Head of State came into office and is thrilled to lead the country to prosperity and

promote its image in the international arena. The Head of State understands that the ASEAN

Economic Community, which is to be established at the end of this year, is critical to the

country’s development. In this regard, he/she believes that in order to successfully formulate

and implement domestic and foreign policies, leaders should have a comprehensive

understanding of the opportunities and challenges the country will face, along with its own

strengths and weaknesses compared to other ASEAN countries.

As a progressive public servant, the Head of State is interested in learning from different

perspectives. In particular, he/she wants to incorporate young and talented students' voices

in policy making. He/she heard that your team has a sound understanding of the AEC and

performed very well at the YSEALI Summer School. Therefore, he/she has invited your team

to the office to hold a 10 minute presentation in front the whole cabinet. The Head of State is

looking forward to hearing your assessment of the country’s unique position in regards to the

establishment of the AEC: its strengths, weaknesses, challenges and opportunities.

The task: You have had a chance to attend lectures and discussions on the first day “An

Overview of the Global, Regional and Local Context, Opportunities and Challenges for

International Integration”. Now it is your chance to offer your own evaluations of the

assigned country. Your team need to work together to identify all the possible aspects of the

AEC that might affect your country. You can consider the following questions:

What could be the impacts of the free flow of labor and tariffs removal on your

country's domestic enterprises, human resources, and economic development? How would your country’s individual sectors (services, industries and agriculture)

respond in the new context? Who would be likely to be the “losers” and “winners”? What are other concerns in

terms of environment and culture?”.

To help structure your thinking, you should consider using the SWOT matrix, but you are

also free to use your own analytic framework.

Factors that are

helpful to achieve

the objective

Factors that are

harmful to achieve

the objective

Factors from the

inside Strength Weakness

Factors from the

outside Opportunities Threats

While delivering your presentation, do not go into too much unnecessary detail, but try to

link the issues in a cohesive way. You only have 10 minutes, what are the key messages you

would like the Head of State and his/her cabinet to take away.

Good luck!

Assignment 2 - Consultancy for an organization: Vision for integration into AEC

Background: Your presentation for the Head of State was a success. He/she holds your

team’s performance in high regard and felt that you offered valuable perspectives for the

government in preparing for AEC integration.

A few days later, you were contacted by a number of organizations, including: government

agencies, domestic corporations and non-profits. You will choose to consult for an

organization listed in the recommendation list in the end of this sheet, or any other

organization of your own choosing.

They have learned about the SWOT analysis for your country relative to the establishment of

AEC. They would like to seek your advice on how they should strategically prepare and

position themselves in the context of the coming years. You team was invited to their

headquarters to deliver another presentation. Given the time constraints, your team can only

accept one invitation.

The task: You have had a chance to attend lectures and discussions on the first two days.

This time, the task requires you to move from SWOT analysis to organization-specific

solutions and recommendations.

Regardless of the sector, every organization has its own mission: For what purpose does it

exist? What should it deliver? Who should it serve? Mission is what determines the

organization’s strategy and the way it navigates itself in the socio-economic and political

environment.

In order to formulate the strategy for your organization, you might want to think about

multiple layers: How might AEC change your country socially and economically? How

might the legal and policy frameworks be different? As a result, which aspects of your

organization will be affected? How should your organization adjust to proactively cope with

those impacts? What should be the strategy to win at your home ground and reach out to the

region?

If you feel like you do not know enough about the organization, don’t worry. You are an

outsider to their organization, which is why they need your objective advice. In other words,

you are acting as external consultants to the organization. You might also feel unsure about

whether your predictions regarding changes would be accurate, which is normal as well. In

all circumstances, we do not always have enough information to be perfectly sure. Dealing

with uncertainty and a lack of information is the art of decision making.

Good luck!

Recommended organizations

No Nation and company Link

Indonesia

1 PT Malindo Feedmill Tbk http://www.malindofeedmill.com/about/detail/malindo

_at_a_glance

2 AKR Corporindo http://www.akr.co.id/

Myanmar

3 MYINT & ASSOCIATES CO.,

LTD http://myintassociates.com/?page_id=17

4 A1companies http://www.a1companies.biz/

Viet Nam

5 Vinamilk https://www.vinamilk.com.vn/

6 Vingroup http://www.vingroup.net/

Malaysia

7 Spsetia http://www.spsetia.com.my/corporate/

8 All Women’s Action Society

(AWAM) http://www.awam.org.my/

Thailand

9 IRPC http://www.irpc.co.th/

10 Preciousshipping http://www.preciousshipping.com/

Philippines

11 SM Investments Corp. http://www.sminvestments.com/

12 Philipine Long Distance Telephonce

Company http://www.pldt.com/

Singapore

13 Bread Talk http://www.breadtalk.com/home.php?lang=en

14 CapitalLand http://www.capitaland.com/

Cambodia

15 Cambodian Children's Fund https://www.cambodianchildrensfund.org/?gclid=CPr

_mquc8MYCFUMDvAodhF8D7w

16 Cambodia Angkor Air http://www.cambodiaangkorair.com/en/

http://www.malindofeedmill.com/about/detail/malindo_at_a_glance

http://www.malindofeedmill.com/about/detail/malindo_at_a_glance

http://myintassociates.com/?page_id=17

Negotiation Simulation: ASEAN Summit 2015

in Kuala Lumpur, Malaysia*

General Information: This year’s Summit marks the most important in the past six years, if

not the entirety of ASEAN’s existence: the second Initiative for ASEAN Integration (IAI)

Work Plan expires in December. Unfortunately, ASEAN is far behind the mark on several of

the goals it set for itself in 2009 – the region is far from full economic integration, many

countries lag behind development standards, and the body has yet to come to agreement on a

number of regional issues. If any of these visions are ever to be seen in fruition, concrete

initiatives must be set in place for the 2016-2021 Working Plan (IAI Work Plan 3). This plan

will see ASEAN through to end of its 2020 Vision, a set of goals covering Southeast Asian

community-building and the establishment of a true ASEAN Economic Community. You

have the opportunity to bring ASEAN radically closer to the realization of that lofty goal.

At the Summit, you will be discussing four initiatives and drafting concrete, practical

solutions to each. These include the following: (i) Reduction of the development gap for

Cambodia, Laos, Myanmar, and Vietnam, (ii) Construction of ASEAN land transportation

network, (iii) Elimination of non-tariff barriers, and (iv) Liberalization of labor flows.

Your job is to work with the other delegations to finalize the working solutions enumerated in

the 3rd

IAI Work Plan in a way that most suits your nation’s interests. Each country has its

own agenda for each of these issues, and while your delegation knows its own priorities, you

know little about which solutions the others have prioritized. In negotiations, allies and

opponents vary issue by issue; it is up to you to determine and navigate these differences. Try

not to get sidetracked with one particular issue or detail – aim for the big picture. And do

remember: ASEAN reaches agreement by consensus. This means that every member country

must say “yes” in order to conclude a deal and draft a solution.

It is also important to keep in mind that, because the Malaysian Delegation is the annual

rotating ASEAN Chair, they will be allowed the first and last opportunities to address the

Summit, and will also have the power to determine the order in which the issues are

discussed, by whom, and for how long. The Malaysian delegation will suffer significantly if

the entire body is unable to reach an agreement.

Each delegation will be given information supplementary to these details. They are free to

share some of their confidential information, but should not disclose the entire sheet.

Delegations are expected to use the weeks prior to the negotiation to conduct additional

research, and should use the evening prior to the Summit to reach out to other delegations for

coalition-building. Teams should also use this time to decide their negotiation strategies and

decide which individual will serve as their country-specific leader. This delegate will address

the entire body at several junctions, as decided by the chair. The Summit itself will last

approximately 2 hours, with a coffee break for additional coalition-building in the middle.

*Disclaimer: This simulation employs imaginary circumstances based upon reality and does not intend to present a true

portrait of ASEAN. Laos and Brunei were left out for the sake of simplicity and consistency in group sizing (there are 8

groups of students in the YSEALI summer program).

Issue-Specific Briefing

Narrowing the Development Gap

If ASEAN is ever to achieve economic integration, it is vital that every member state can

conduct business on an equal playing field. As it stands, Cambodia, Laos, Myanmar, and

Vietnam (CLMV) fall severely behind the standard set by the rest of the region. They have

requested assistance in constructing the necessary hard infrastructure – telephone lines, fiber-

optic cables, paved roads – to modernize their countries. Their fellow member states worry

that any money allocated for development will be wasted unless CLMV modernizes its soft

infrastructure – their legal systems, institutions, etc. – first. What’s more, Indonesia and the

Philippines argue they, too, despite higher GDP, should be candidates for development

funding. The Summit is debating five separate options:

1.

A. Nothing – i.e. maintenance of the status quo

B. The developed countries offer only their advice & support for legal and institutional

reform

C. The developed countries creates a dev. fund for hard infrastructure development

outright

D. The developed countries creates a hard infrastructure development fund in exchange

for certain institutional reform benchmarks being met

E. The entirety of ASEAN shares the cost of creating a development fund, which the

Philippines and Indonesia, too, will be allowed to access

ASEAN Transportation Network:

In order to foster integration and achieve the dream of a full-blown ASEAN

Transportation Network, the Summit is pursuing a number of different options for

constructing better land transportation infrastructure. Among these options are a number of

different routes for the proposed Singapore-Kunming Rail Line (SKRL), as well as the

inclusion of the East-West Economic Corridor. Bear in mind that the costs for these projects

will be borne by all members of ASEAN. The proposed options (though new agreements may

be reached) are as follows:

2.

A. No implementation of land transportation reforms, leaving room for other projects

regarding maritime or air transportation

B. Construction of an SKRL that passes from Singapore-Malaysia-Cambodia-Laos-

Vietnam-Kunming, China

C. Construction of an SKRL that passes from Singapore-Malaysia-Cambodia-Laos-

Vietnam-Kunming, China with the construction of an East-West Corridor between

Myanmar, Thailand, and Vietnam, at an ASEAN-subsidized cost for the latter

D. Construction of an SKRL that passes from Singapore-Malaysia-Thailand-Myanmar-

China

E. Construction of an SKRL that passes from Singapore-Malaysia-Thailand-Myanmar-

China with the construction of an East-West Corridor between Myanmar, Thailand,

and Vietnam, at an ASEAN-subsidized cost for the latter

Non-Tariff Barriers

The AEC (ASEAN Economic Community) integration deadline of 31st December 2015

requires all ASEAN members to reduce their tariffs on manufactured goods across borders.

Apart from Indonesia, Malaysia, Philippines, Singapore and Thailand, other member states

have not yet achieved full implementation of this regulation. The purpose of this discussion is

to determine the potentiality of other ASEAN members’ compliance with the AEC Deadline.

Any adjustment of tariff rules, including a set tariff rate, will be reached by agreement among

all members on the following:

3.

A. A Non-tariff rule will be fully applied and extended until December 31st 2018

B. A Non-tariff rule will be fully applied and extended until December 31st 2018.

Meanwhile, countries that have not yet adhered to the 2015 deadline are required to

reduce their tariffs on manufactured goods by 50%

C. A Non-tariff rule will be fully applied and extended until December 31st 2018.

Meanwhile, countries that have not yet adhered to the 2015 deadline are required to

reduce their tariffs on manufactured goods by 75%

D. Countries are strictly required to comply with the deadline by the end of the year –

penalties will be applied for non-cooperative behavior

Free Flow of Labor:

One of ASEAN’s major ambitions is the creation of a zone for the free movement of

labor, skilled or unskilled. In theory, such a zone would (i) promote higher wages and better

opportunities for migrants, (ii) alleviate labor shortages for host countries, and (iii) increase

the transfer of knowledge and best practices, as well as financial remittances.

Yet, though ASEAN has made a number of efforts to promote skilled labor integration,

the unskilled labor flow remains highly unwieldy. Each year, thousands of unskilled migrants

leave from Cambodia, Laos, Myanmar, Indonesia, and Vietnam to pursue work with higher

basic salary in Singapore, Thailand, Malaysia and Brunei. Most countries seek to limit the

inflow of unskilled labor while only allowing skilled migrants to enter. This mechanism

results in varied migration policies across countries, as well as abusive treatment of unskilled

workers.

At the Summit, you will consider the implementation of ASEAN’s Protection and

Promotion of the Rights of Migrant Workers (PPRMW) across all states. The PPRMW will

ensure the fundamental rights of all ASEAN migrant workers and protect them from

mistreatment. As it stands, while the exporting states insist on a legally binding PPRMW, the

receiving states prefer to limit the instrument’s power. The proposed solutions include, but

are not limited to:

4.

A. Adoption of the PPRMW as a “guideline” for domestic reforms

B. Adoption of the PPRMW as an ASEAN-wide guideline for a period of 5 years, during

which the major exporting states are required to raise their labour qualifications up to

the ASEAN standard

C. Adoption of the PPRMW as a legal policy that applies to all states, foregoing the

inclusion of migrants’ family members

D. Adoption of the PPRMW as a legal policy that applies to all states, applicable to both

migrant workers and members of their families. Failure to comply will trigger

appropriate consequences for the offending state

(Tentative) Simulation Procedure

08:30 – 08:35 Opening remarks by Chair country (Malaysia)

08:35 – 08:40 Keynote speech by ASEAN Secretary General (case-writers)

08:40 – 09:25 1st Round of discussions – only one speaker at a time, length & order of remarks

chosen by the Malaysian Chair

09:25 – 09:40 Coffee break 1 – time for additional coalition-building / shuttle diplomacy

09:40 – 10:25 2st Round of discussions

10:25 – 10:40 Coffee break 2

10:40 – 11:25 Last Round of discussions

11:25 – 11:30 Closing remarks by Chair country (regardless of reaching an agreement or not)

11:30 – 11:45 Full group discussion and assessment by facilitators/ case-writers

Negotiation Recommendations and Expectations

Facilitators

Each delegation will be assigned a facilitator, whose role will be to provide counsel on the

team’s strategy before and during the negotiation. Facilitators have participated in this very

negotiation in the past, and will be assigned to the country whose role they have already

filled. Facilitators will not under any circumstances divulge the secret information of other

delegations. Teams will meet their facilitators for the first time at the YSEALI conference.

Preparation

Foremost, it should be noted that this exercise requires NO additional research on ASEAN,

the AEC, or any other issue at play. Every piece of information you will need to argue your

case and develop an effective strategy is contained within this packet and the secret briefing,

which will be distributed to you a few days’ prior to the negotiation.

That said, we do expect that you will coordinate with your teammates and facilitators both

prior to YSEALI and the night before the debate itself. At this time, you will be given

additional instructions by the YSEALI staff and a one-hour period in which to forge alliances

with other delegations, meet with your teammates, and develop a strategy. Regarding the

latter, you should use the tips below to develop a clear, cohesive, and well thought-out plan

for conducting yourself during the simulation and during any other period which might prove

fruitful for diplomacy.

Negotiation Tips and Best-Practices

1. Negotiation is, at its core, about leverage. You would do well to begin your

preparation by deciding which issues give your country an outright advantage, and

which are designed to work against you. Your simplest and most effective maneuver

will be to force the other delegations to comply with your priorities by denying theirs

in another venue. For example, if my country will not benefit from a maritime

transportation proposal, I’d best leverage my natural resource stores to convince other

countries that obtaining what I have to offer is more advantageous than winning their

top choice maritime deal.

2. You win when your country gets its highest priority options in as many issues as

possible.

3. Each delegation has a near-equal number of advantages and disadvantages, and by

identifying countries whose interests align with your own, you can effectively forge

alliances to ensure that your collective needs are met.

4. ASEAN must decide via consensus. Therefore, if a single delegation refuses to give a

“yes” vote on an issue, nothing can be done until that country’s needs are met. Often,

in negotiation, the weakest party becomes the strongest.

5. Coffee breaks, as innocent as they sound, can be your most valuable resource, if used

correctly. Those who fail to make deals when their speech is open and unlimited are

usually those who fail.

6. Remember that failing to decide upon a solution to a particular issue is as good as

choosing Option A – “do nothing” – for that particular issue, likely benefitting one or

more delegations.

7. Finally, keep in mind that the Malaysia decides when your delegation can and cannot

speak, as well as when the body votes. You would do well to stay on their good side.

Policy debate at the ASEAN Secretariat: Challenges and

roadmap to building a sustainable AEC

Background: The AEC’s establishment deadline is approaching: all organizations from

public, private to nonprofit sectors across the country are eager to learn more and prepare

themselves for the incoming changes. Even the ASEAN body itself needs to adapt in order to

better meet up with greater responsibility due to AEC establishment.

Even with successful integration, a sound implementation of the AEC on a daily basis will not

be guaranteed. Serious challenges will rise, including differences between the member

countries, the uncertainty of the global economy, and a number of security issues. Recent

events within the EU are proof that regional integration is never an easy job. There is need

for a comprehensive analysis and action plan for the future of the AEC.

After the previous two successful meetings with the Head of State and an important

organization of your country, your team’s reputation as ASEAN young experts has spread out

quickly. The ASEAN Secretary General heard about you and invited your team to Jakarta,

Indonesia to take part in a competition - a policy debate on “the challenges and roadmap to

building a sensible AEC”. Winners of this competition will be offered a permanent position

as a policy analyst at the ASEAN Secretariat Headquarters.

This time, you will compete with the best young experts from other ASEAN member

countries!

Instructions: The point of this exercise and competition is not only to test and synthesize

what you have learned over the past two weeks, but also to hone your English,

argumentation, and public speaking skills. You are being asked, foremost, to construct

thoughtful and well-researched answers to the prompts given below, which you will present

to the entire body of YSEALI and a panel of expert judges who will determine the debate

finalists and eventual winner.

Every participant will be given five minutes to present their proposed answer to the prompt,

taking care to highlight in detail their understanding of ASEAN and their assessment of the

reality of the AEC’s ideals. They will answer another five minutes’ worth of questions from

the YSEALI collective, which may address questions of clarification or argumentative

structure.

Participants will be judged according to the following criteria, each of which will be assigned

a score from 1 - 5: Evidence of Research, Creativity, Presentation, Feasibility, and Argument.

Remember that, above all, this process is meant to be fun and enriching. Approach the debate

with respect and humility, but also with a good attitude and willingness to improve. We look

forward to seeing all of you in action!

Semi-final Round:

Challenges for building a sensible AEC:

While the European Union consists of economically and politically matured countries,

ASEAN identifies itself as a dynamic and fast-changing community. This reality has become

both an opportunity and challenge for ASEAN in the midst of regional integration. At the

Bali Summit in November 2003, ASEAN leaders declared the creation of AEC (ASEAN

Economic Community) and promised the creation of a single market and production base by

2015. However, the widening development gap is restraining the necessary implementation

of reforms for greater regional cohesion. In particular, less developed members like

Myanmar, Laos, and Cambodia have struggled to comply with the AEC 2015 Tariffs

Abolition Deadline. Facing these regional disparities, will AEC be able to empower deeper

and broader integration in ASEAN? Which reforms should ASEAN leaders address first to

work toward the vision of regional integration?

Please give us details on 3 challenges that are most urgent for AEC’s development

and the reasoning behind your selections.

Final Round:

Road map to building a sensible AEC:

Despite a boost in living standards since the creation of ASEAN, poverty and opportunity

gaps persist in some member countries. Working towards a cohesive community has been the

AEC’s goal since its creation. However, the institution is constantly facing complications in

issues regarding the development gap, political differences, labor market flows,

infrastructure, and connectivity. Some scholars now begin looking into other best practices to

draw new insights. In examining other models, the European Union (EU) certainly has

experiences and good practices. For example, the EU’s central legal, banking and monetary

systems help lay solid foundation for its unified identity. The question now remains in

building a road map to guide AEC toward a better-organized regional entity: Which step

towards realizing the AEC’s goals is to be prioritized? Which issue must be presented first?

Does the AEC need a single monetary policy like the European Union?

Please give us a detail plan of your proposal on the 3 first steps that AEC should

implement at the 2016 Summit.

PART III - BACKGROUND MATERIAL

1. Thinking Globally, Prospering Regionally – ASEAN Economic Community 2015,

ASEAN Secretariat, April 2014 (in separate pdf and ppt files)

yseali information package

Documents