I.

INTRODUCTION
On the 30th anniversary of the Association of Southeast Asian Nations, the
founding leaders of the ten member states agreed upon a program called the
ASEAN Vision 2015 which is a shared vision of the member states to live in a single
community called the ASEAN Community in peace, stability and prosperity. This
community will be guided by the three pillars: political, security community, socio
cultural community and economic community.
The Economic Community
The ASEAN Economic Community envisions the ASEAN community as a single
market and protection base, highly competitive economic region, region of equitable
economic development, and a region fully integrated into the global community.
From this pillar springs new development in the accountancy profession.
One of the aims and purposes of this community is the reduction of barriers
and costs of doing business transnational such as quotas, tariffs and other taxes
and the improvement of infrastructure to better facilitate the movement and freeflow of goods and labor. One implication of this is the free-flow of professional
services such as accounting and auditing across member states. But this movement
of services are restricted by some limitations.
The Mutual Recognition Agreement
This agreement provides for the allowed practice of foreign professional
accountants on a granting member state with some general requirements such as
the following:

A degree on Bachelor of Science in Accountancy or a similar degree

A Certified Public Accountant license

Three years of meaningful experience within 5 years of being a CPA

Continuing Professional Education

Once approved, the professional will be considered as an ACPA or Asian

Chartered Professional Accountant and an RFPA or Registered Foreign Professional
Accountant.
Implications of the ASEAN Community Integration
It is expected that this integration will result to a net outflow of professional
from the Philippines. The government sees this as an advantage due to an increase
in remittances from abroad; also, Filipino professionals will meet a lot of better
opportunities in furthering their career in the profession by being exposed to
different fields in different ASEAN member countries. However, the net outflow will
leave the country lacking of professionals that are much needed for the further
development of our country. Through inflows of other professionals and investments
from other member states will fill this gap, it still is implicative that the country
maintain a sense of independence in the area of development. Also, NGOs and labor
are concerned that the migration of certain professionals will lead to an increased
number of broken families and juvenile delinquents due to lack of parental
supervision and guidance. This integration also promises the strengthening of
certain businesses in our country with their partnership or particular agreements
with other companies from other member states. However, this also entails that
small and medium enterprises may be left out and all together wither because of
increased competition. Lastly, the ASEAN integration purports to bridge gaps and
facilitate the movement and free-flow of labor for the further development of the
member states. But, certain agreements regarding the rights and protection of
migrant workers are not yet in place. Labor unions are also uncertain as to their

place and status in the ASEAN Community. Matters such as these should be
considered and taken into account to ensure the success of the ASEAN Vision 2015.

II.

Priority Integration Sectors and Value Chains Status

There are eleven priority sectors namely electronics, e-ASEAN, healthcare,

wood-based products, textiles and apparels, agro-based products, fisheries, air

travel, automotives, tourism and rubber0based products. Overall, the trade in
Electronics and Information and Communications(ICT) Technology are relatively high
among ASEAN countries according to the intra-industry trade index. Even though
trade in other priority sectors show improvement, these sectors do not meet the
moderately strong classification. Integration in electronics was high only in Malaysia
while intra-industry trade in the ICT sector suffered a decline except in the
Philippines and Vietnam. Other sectors particularly agro-based, fisheries, woodbased products and rubber-based products had at most mild integration for the
ASEAN 6 and weak or no integration for the member CLMV. The ASEAN 6 are the
biggest member economies in the ASEAN which is composed of Malaysia, Thailand,
Philippines, Singapore, Brunei Darussalam and Indonesia while CLMV is composed of
the slow developing economies in ASEAN trade namely Cambodia, Laos, Myanmar
and Vietnam.
This concludes that the overall level of intra0industry trade in integration at
the sectoral level was relatively high only for a few sectors and only for some
specific member economies. These findings enhance the theory that strong
integration is most likely to occur in developed economies than in less developed
economies. In the Philippines, the following development in each sector is
discussed:
ICT or e-ASEAN

Only a few products registered moderately strong and strong intraindustry trade. Parts for television, radio, and radar apparatus show
strong integration. While office machines, typewriter and apparatus for

radio telecommunications show moderately strong integration.

Electronics
It is where integration is most weak, automatic data processing
machines are the only exception which registered a big increase in
intra-industry trade. Air or vacuum pumps, compressor and fans were

still weak but registered a big increase in intra-industry trade.

Automotives
The automotives industry had moderately strong integration.
The intra-industry trade of automotive were mostly one way except for
two main products which had strong and deep integration with
Thailand, namely parts and accessories for cycles and invalid carriages

and products, parts and accessories for motor vehicles.

Textiles
There was either no trade or weak integration in the intraindustry trade.

Healthcare
There was strong integration in the healthcare industry for
beauty, make-up and skin care preparation products and moderately
strong integration for medicaments.

Agro-based
There is a rapid exchange of products like malt extract, food
preparation,

fruits,

nuts,

prepared

or

preserved

and

tobacco,

unmanufactured among ASEAN countries. There is a moderately strong

integration between the Philippines, Singapore, Malaysia and Indonesia

specifically fruits and nuts, food preparations and unmanufactured

tobacco and corn respectively.

Fisheries
There was only a one-way trade because neither no trade
existed nor reported. Most of the countries are surrounded by the same
bodies of water so the resource of one country is also the resource of
the other.

Rubber-based
No trade was reported in most of the products and where trade
existed, it was either one-way or weak and mild exchanges.
Wood-based
No trade was reported in most of the products and where trade
existed, it was either one-way or weak and mild exchanges. An
exception to this occurred in toilet papers and similar household
sanitary items where a strong intra-industry trade occurred in Malaysia

in 2001.
Air Travel and Tourism
In 2008, restrictions on carrying passengers and cargoes to and
from one country to another has been completely removed. In 2009,
full liberalization of air freight services took effect. Lastly, full
liberalization on fifth freedom rights between all capital cities took
effect. Nationals of participant countries are free to travel as well
without the need for VISA.