ABSTRACT
The Association of Southeast Asian Nations (ASEAN) officially announced the establishment of the ASEAN Economic Community (AEC) at the end of 2015, whereupon new steps were taken toward integration. This chapter discusses the features of ASEAN integration as well as its challenges and countermeasures. The birth of AEC is often recognized as a visible outcome of ASEAN integration, because AEC's zero-tariff policy is quite distinctive from other economic frameworks being negotiated, such as the Trans-Pacific Strategic Economic Partnership Agreement (TPP) and the Regional Comprehensive Economic Partnership (RCEP). ASEAN is blessed with many opportunities, such as sound economic growth, a large population, expansion of the consumption market, developed regional infrastructure, and an effective supply chain network. But ASEAN has several challenges for the future, such as the termination of its demographic bonus, aging, domestic disparity, weak business competitiveness, rapid urbanization, expansion of food and energy demand, and an increase in disaster risks.
