Author: Marco Müller

exploreASEAN had the honour of hosting the South Korean Minister Counsellor Wonchang La during the Seminar in Switzerland, held from 14 to 18 February 2022 at the FHNW campus in Olten. He provided interesting insights into the ASEAN+3 member state South Korea and its unprecedent rapid economic development. Moreover, Mr. Wonchang La was available for a short interview in which he speaks about his personal journey of becoming a diplomate, about the cultural challenges he faced and his personal values. He is currently Deputy Chief of Mission at the South Korean Embassy in Bern and has already been posted in Kazakhstan, Russia, the USA, and Italy.

South Korea and ASEAN

The 7th edition of exploreASEAN focuses for the first time in history not only on the ASEAN but also on the ASEAN+ member states, considering the growth and influence in the global market that cannot be overlooked. This is especially true for South Korea, which is ASEAN’s fifth largest trading partner, and conversely, ASEAN is the second largest trading partner for South Korea. The two economic powers are currently updating their free trade agreement to further reduce trade barriers as South Korea seeks to diversify its trade portfolio and expand its presence in Southeast Asia.

South Korea’s Unprecedent Rapid Economic Development – The Miracle on the Han River

The resource poor country surrounded by powerful neighbours like Japan, China, Russia and North Korea, has seen one of the most unprecedented rapid economic development in the world. South Korea’s GDP grew from 4 billion USD in 1960 to 1.630 billion USD in 2020, this means an increase of 410 times in the last 60 years. In terms of GDP, South Korea ranks 10th in the world, after the G7 states, China and India. Moreover, GDP per capita has increased 209 times. The country’s trade volume ranks 7th in export and 9th in import. In addition, according to the Bloomberg Innovation Index, South Korea ranked 1st in 2021. It was already the case for the seventh time over the last nine years.

After the Korean war in 1953, only few people may have foreseen such an economic success story for the developing country. The South Korean government, with its seamless execution of economic development plans and focused investments in talent development on the one hand, and the Korean people, with their strong work ethic and an enthusiasm for education on the other hand, have been key to this never-before-seen economic growth, dubbed the “Miracle on the Han River”.

After Mr. Wonchang La’s presentation the PR team had the unique possibility to conduct an interview with the Minister Counsellor who has been posted in several different countries. His latest challenge awaits him in Bern, Switzerland. As a widely traveled diplomate, a cultural expert and connected to South Korea by his roots, he is the perfect interview fit for the current exploreASEAN edition.

Mr. Müller: During the presentation you mentioned the quality development of Korean goods, like the Korean car, which quality you have experienced quite disappointing in the late 1990’s and surprisingly good in 2006 when you bought a Hyundai car in Moscow. You also mentioned this strong work ethic of South Korean people. Did this work ethic develop during this time, or was it just that it finally paid off thanks to other factors that came together and ensured that the economy developed and produced better quality?

Mr. La: That’s a tricky question. Just like Switzerland, South Korea is a resource poor country, so in order to survive and succeed you have to work hard. That work ethic has been etched into our mentality throughout the history. Once South Korea became an independent country after the war, we could work for ourselves. With the advent of the democracy in 1987 after the end of the military dictatorship really unleashed people’s freedom to be rewarded for what they do. Also, South Korean family have witnessed that higher education pays off. So that is why each family is motivated to send their kids to college. Doing so requires a lot of sacrifice from these families but they think it is worth it and they place it on top priority. So, this ingrained in a work ethic and the strong motivation to put the next generation into higher education. Those are the two most critical elements in the South Korean work force which turned them into one of the top-notch workforces in the world.

Mr. Müller: Now I would like to ask you more personal questions. In your life, you have lived, studied and worked in many countries: How did you handle the cultural differences? What has been the main challenges?

Mr. La: I grew up in South Korea and then moved to the US as a teenager. During my college days I also spend a year in Japan as an exchange student. Ten years later I came back to South Korea to become a Korean diplomate, I was 27 years old at the time and since becoming a diplomate I was posted in five different countries starting with Kazakhstan. The postings in Moscow, Washington D.C., Rome and finally Bern followed. Spending time in all these countries – for me the two most important elements to continue my personal developments as a person and as a professional are the adaptability and the willingness to learn and enjoy my surroundings. Moving from South Korea to the United States as a teenager was a huge challenge, I did not speak English at all, but I made a lot of effort to pick up the language as quickly as possible and I was really focused on my studies. That really helped me to be able to adapt quickly in new surroundings throughout my career so moving from a central Asian country to a former Soviet Union and also going back to Washington DC. and then moving to Rome and Switzerland was quite a change in scenery and working environments but based on my past experiences I enjoyed the transitions and they have been rather smooth.

“…you are more defined by how you do what your tasked to do and not by what you do.”

On my second point, most young people tend to think that their value or their standing is determined by what they do – like what kind of job descriptions they have. It might be true but, in my view, a more accurate, a more useful approach would be that you are more defined by how you do what your tasked to do and not by what you do. If you do even small tasks with a lot of effort and you are willing to do it well then you will be gradually assigned to more important tasks and bigger responsibilities. I think that this really is key for young people to keep in mind. That has actually been my moto during my public career and you know, paying attention to details and small things matters. It allows you to see the differences and this helps you to adapt and enjoy the new environment and find new opportunities.

Mr. Müller: Willingness comes from motivation. What was your motivation to decide to become a diplomat for South Korea in 1997?

Mr. La: In my opinion, not many people end up with the job that they initially thought they would be doing. It was the same for me. I did not think about becoming a South Korean diplomat. I moved to the United States as an immigrant and I started high school and college there. I was in a graduate’s program with the intention to work in the private sector or for international organizations. During my Master’s degree, a South Korean diplomat who was a classmate of mine started foreign service with the South Korean government. Although it was not a venue or the career I was thinking about, I thought it could be an interesting career – so, I applied. To my own surprise I passed all tests on the first try. I think it is probably the same for every country that becoming a diplomate is quite a challenge. The Level of exam is quite difficult and there are usually very few slots open in these positions. In South Korea we select about 20 diplomats each year out of 50 million people.

“…my hard work as a student to focus on international markets and relations paid off.”

Even though I did not try to become a Korean diplomat, my hard work as a student to focus on international markets and relations paid off. In terms of career ways, you might not end up doing what you planned to do but if you spend each day with a determination to excel, then you end up with something surprising, very enjoyable and worthy to do.

Mr. Müller: A great message for all students. Where in the world did you find yourself the most comfortable?

Mr. La: Not as a diplomate but as a person I think Switzerland has the most, what I would wish for my own people and my own country. The clean environments, the beautiful nature the productivity and the level of wage and social welfare and the diversity of education and career developments, the medical services – I mean I can go on and on about the most admirable aspects of Switzerland and I think that this is why Switzerland is the envy of the world and in that regard, I am happy that my country is making small steps to emulate and get closer to Switzerland. You know all the countries that I have been posted had some attractive sides. For instance, Italy and their cultural inheritance is tremendous. I mean not only Rome or Firenze or Venice, even if you go to the small towns, you find some world class Art hidden there and not to mention the cuisine the wines and the beautiful sights. In Washington D.C. I played a small role in helping South Korea and the US to verify their free trade agreement – it was professionally a very rewarding experience. To intermingle with policy makers and top-notch thinkers in foreign affairs and economy is really an accelerating experience. In Moscow I learned a lot about the history about communism and what It means to transit from a communist country to a free economy and about what kind of costs that the people have to pay for this to happen. Kazakhstan is a very exotic place. The first time I went to the green market where vendors sell all these dried fruits – really delicious! For young people I recommend to spend their time to visit different countries and to explore different cultures and see it for themselves.

Mr Müller: Thank you very much for your insightful contribution and for your time!

On December 17, 2021, exploreASEAN together with the head of International Relations, Prof. Robert Buttery welcomed Mr. Joël Henri Brunner, Science Counselor at the Embassy of Switzerland in Singapore. The purpose of the meeting held at the campus Olten was to explore possibilities of support for the project and to discuss means of expanding FHNW’s collaboration with Singaporean universities.

Singapore: A Knowledge-Based Economy

Since their independence in 1965, Singapore has remarkably developed from a low-income country to a high-income country with an average GDP growth of 7.3% (until 2019). Everything started with the government recognizing that they must make up technologically for the country’s constraints in resources. Their most valuable resources: the people. At the beginning they struggled to get the scientists and engineers willing to pursue in R&D. However, thanks to Singapore’s substantial investment efforts in R&D within the science and technology area, the island city-state has managed to become a true knowledge-based economy that thrives on innovation and enterprise. According to the World Bank Human Capital Index, Singapore leads the ranking as the best nation worldwide in human capital development.

The Potential of Swiss Universities of Applied Science

Today, Singapore’s universities are among the top ranked universities in the world. This is especially the case in engineering and technology (e.g. NUS and NTU) but also in the field of business and management (e.g. Singapore Management University). Whereas high ranked Swiss universities like the ETH or EPFL are well connected with Singaporean universities, Swiss universities of applied science are still in process of establishing a foothold and build these partnerships. Recently, Singapore and its universities have recognized the need for a more practical education going beyond academic merit, greatly increasing the interest in the offerings of Swiss applied universities.

That shift has been recognized by Mr. Brunner, who is responsible to promote and strengthen bilateral cooperation between Singapore and Switzerland in the domains of education, research and innovation. He stated that Singapore has been closely watching the Swiss education system. In his view, Swiss universities of applied science are doing very good work and he believes that there is great potential for exchange with Singaporean institutions. In the case of the FHNW School of Business, this work has recently paid off with the prestigious AACSB accreditation, underlining the potential of Swiss universities of applied science and their students.

After a brief introduction from Prof. Buttery to the vision and mission with the long-term goals of the School of Business in terms of international collaboration, our project members Anil Singh and Marsha Schurtenberger presented the 7^th edition of the project to Mr. Brunner, providing him with a good general overview and with the mission of our project, which is to build bridges for young talents through teaching cultural values and business aspects of the ASEAN region and providing a network where students of the FHNW can connect with their potential future employer.

Supervisor Dr. Freiburghaus further explained that the project team needs to work out everything by themselves. For instance, the project’s theme and the decision on the visiting destinations, the planning and execution of the seminars in Switzerland and abroad, or the financing of the project by acquiring new sponsors. Not to forget the selection of an interdisciplinary delegation across all the schools of the university of applied science.

Prof. Buttery proudly added that the four international student projects (ISP) are enabling students to apply what they have learned during their studies. He stressed that ultimately it is not about the ranking of a university, but about what the students are capable of. Moreover, Prof. Buttery explained that the prestigious ISPs, which are not quite easy for students to join due to the strong competition, are a good springboard for the students into the global business world and will enhance their employability.

The Role of exploreASEAN

When Mr. Brunner was asked why he had decided to visit the FHNW, he explained that while he was researching links between Singapore and Swiss institutions, he had stumbled upon the exploreASEAN website and was impressed by the project.

Mr. Brunner further emphasized the importance of teaching students to tackle complex problems in cross functional teams to best prepare them for the “real world”. The FHNW degree programmes build on cross-functionality and exploreASEAN is thus a good example of showcasing this. He is convinced that the exploreASEAN project can support him in demonstrating through his platforms, what Swiss universities of applied sciences and their students can do. For example, Mr. Brunner discussed the potential of showcasing the insights gained by exploreASEAN on the online platform nextrends-Asia, helping to increase visibility for the projects and the students individually. The platform regularly showcases upcoming education, research, innovation and policy trends from China, India, Israel, Japan, Singapore, South Korea, Taiwan and Australia, and how Switzerland’s innovation players engage with them.

Finally, Mr. Brunner assured that the Ambassador Filliez and the Swiss Embassy in Singapore will be happy to support exploreASEAN with linking them up with potential partners and sponsors and welcoming them at their premises.

The team thanked Mr. Brunner for his support and is looking forward to welcome him in February 2022 at the Seminar in Switzerland.

Sources:

https://www.macrotrends.net/countries/SGP/singapore/gdp-growth-rate

https://www.topuniversities.com/where-to-study/asia/singapore/singapore/guide

https://lkyspp.nus.edu.sg/gia/article/singapore-50-years-of-science-and-technology#4

https://www.worldbank.org/en/country/singapore/overview#1

One year ago, on November 14, 2020, during the 37^th ASEAN Summit the President of Vietnam and former Prime Minister Nguyen Xuan Phuc, and the Singaporean Prime Minister Lee Hsien Loong launched the ASEAN Smart Logistics Network (ASLN) together with its first project, the Vinh Phuc Inland Container Depot (ICD) Logistics Centre. Also known as the SuperPort. This article provides an overview about its goals, projects initiated, and potential opportunities for foreign investors.

ASLN – Enhanced Logistics in the ASEAN Region

The ASLN serves as a platform which aims to promote logistics interconnectivity and integration within the member states of ASEAN. Moreover, it seeks to encourage the use of smart and sustainable logistics infrastructure. Also, the ASLN is a supportive means to ASEAN’s economic integration efforts and initiatives, such as the ASEAN Connectivity Master Plan 2025. A policy, which’s vision it is to connect and integrate ASEAN members seamlessly and comprehensively to promote competitiveness, inclusiveness, and finally a greater sense of community. Seamless logistics is one out of five strategic areas elaborated in the Master Plan. The area is focusing on two strategic objectives: lower supply chain costs and make the supply chains faster and more reliable in each ASEAN member state.

According to the Master Plan the previous initiatives have not reached the goals set in terms of logistics improvements. The reasons evaluated were named as a lack of coordination between government departments and sharing of best practices.

With the launch of the ASLN, the ASEAN is aiming to provide greater collaboration between logistics organizations, academic institutions, and the ASEAN member states with the shared goal of smart and sustainable growth.

Besides the ASEAN Connectivity Master Plan 2025, the ASLN is also assisting the ASEAN Smart Cities Network, and the ASEAN Integration Initiatives.

Vinh Phuc ICD Logistics Centre (SuperPort) in Vietnam

The inauguration of the ASLN was also the kickoff for its first logistics project in Vietnam. The SuperPort is going to be one of Vietnams largest logistics centers, which is situated in the northern province of Vinh Phuc near Hanoi. Not only will it serve as an inland transit point for domestic goods, imports, and exports. But also, as an inland container depot and a facilitator for customs clearance services for imports and exports.

The logistics center connects 20 industrial areas by road, rail, air, and sea. Furthermore, it is providing connectivity to the city of Hanoi, Hai Phong International Airport and China’s Yunnan Province, where the goods are transported via the Lao Cai border gate along the Hanoi-Lao Cai economic corridor.

The project is operated by the T&T Group of Vietnam and Singapore’s YCH Group. The investment made amounts to USD 166.68 million.

Phnom Penh Logistics Complex in Cambodia

The second project under the ASLN has been released by Cambodia’s Ministry of Public Works and Transport, and again by the YCH Group from Singapore.

The Phnom Penh Logistics Complex project will start in 2022 and follows the concept of the SuperPort in Vietnam. The costs for the logistics project are estimated at USD 200 million.

The aim is to build a state-of-the-art logistics complex, using latest technology to enhance resilience, visibility, and the process flow of the logistics. Moreover, it will feature a training academy and startup hub to train employees in the logistics sector of Cambodia.

Opportunities for Foreign Investors and Businesses

The Singaporean YCH Group is managing both ASLN projects by providing their expertise for the development of the logistics infrastructure. This example implicates the support needed from more developed countries to excel in the complex projects initiated.

Even though the main partners involved will be from the ASEAN region, foreign companies may contribute with consulting services, goods and services for the development of the logistics infrastructure, and with other kinds of collaboration. Furthermore, the funding of the projects might also be attractive for foreign investors who are or want to be involved in the ASEAN region.

Even if not directly engaged, these businesses will also profit from the implemented projects: greater integration within the ASEAN will lead to more efficient and faster logistics. This will benefit the trade in goods and services across the region and lower costs.

Outlook

So far, two major projects have been launched under the ASLN, which is said to improve logistics in the ASEAN region significantly. With the expertise of the Singaporean YCH Group and the willingness to collaborate, these projects are most certainly going to succeed and implemented as planned. More sustainable projects will follow, and further improve logistics infrastructure, which will not only benefit the ASEAN member states and their businesses. New and attractive opportunities will emerge even for foreign companies and investors.

Sources

http://kinhtetapdoan.vn/trung-tam-logistics-icd-vinh-phuc-chinh-thuc-duoc-khoi-dong-d9510.html

The world is a complex value chain, a network of organizations that works collaboratively to transfer products and services from producers to consumers. The conditions we have become accustomed to is inconceivable without an international supply chain. During the 7th edition of exploreASEAN we will dive into this complex world of global value chains and the positioning of ASEAN+ in those growing dynamics. Learn more about our theme and the destinations chosen for the on-site trip.

Over the last several years, ASEAN (the Association of Southeast Asian Nations) maintained strong and steady economic progress showing the enormous potential that lies in this region. As a result of closer economic and political collaboration – the establishment of trade agreements combined with the promotion of peace and stability – poverty declined significantly, and GDP rates grew rapidly.

During the 7th edition of exploreASEAN we will dive into the complex world of global value chains and the positioning of ASEAN+ in those growing dynamics. Herewith, we proudly present this year’s project theme:

ASEAN+ in the Global Value Chain: Gain and Sustain

The world is a complex value chain, a network of organizations that works collaboratively to transfer products and services from producers to consumers. The conditions we have become accustomed to is inconceivable without an international supply chain. Due to this reason, we want to dive into the intricate field of the global value chains and the positioning of ASEAN+ in those growing dynamics. Due to the rapid development, sustainable potential, and fast pace of innovation, the value chain of ASEAN+ is an exciting destination for tomorrow’s investors.

For this year’s edition we have incorporated South Korea in our project. The unprecedent inclusion of an ASEAN+ country was based on the growth and influence South Korea has gained in the global market in recent decades. South Korea’s economic success cannot be overlooked and therefore will be an exciting and remarkable addition to this years exploreASEAN.

Gain

Value chains exist to connect producers and consumers in an ongoing exchange of value. As a result, innovations in value chain drive innovations in the rest of the economy. According to a research conducted by the APEC Policy Support Unit, a 1% gain in logistics performance and competitiveness may result in a 3% boost in export growth. This fraction already shows the immense potential in the ASEAN market. Hence this project will investigate the position of ASEAN+ in the global value chain and how their role might be strengthened or challenged.

Sustain

Value chains are to human civilization what oxygen is to life; when they work well, no one notices them. It is only when they start to fail that we realize there is a problem. Therefore, one can say that the value chain is an integral part of a company which is commonly faced with many challenges. Whether it is in the day-to-day operations or more significant adaptations like the transformational change, which are gaining on importance in the forthcoming years. The growing volatility in the business environment motivated us to explore the difficulties, innovations, and opportunities that might face ASEAN+ and how their competitiveness can be sustained in the constant evolving environment.

On-Site Trip Destinations

The journey of this year’s exploreASEAN edition will lead us to two founder nations of ASEAN – Singapore and Thailand – and to one of ASEAN’s main partners and ASEAN+ member state, South Korea.

Singapore – World-Class Global Connectivity

Thanks to state-of-the-art technology and a strong Free Trade Agreement network (25!) and a reliable, highly advanced, and efficient logistics and supply chain management hub, Singapore has one of the best logistics performances in the world and plays a crucial role in the global value chains.

Even in times of the pandemic, which severely disrupted supply chains, Singapore’s strong maritime performance could be relied upon. This is a clear indication of how it has strengthened its status as a global logistics center.

Thailand – ASEAN’s Manufacturing Hub

Manufacturing is one of the most important sectors of ASEAN second-largest economy Thailand. Therefore, it is not surprising that Thailand is one of the largest manufacturing hubs in Southeast Asia. The country produces a variety of goods such as textiles and apparel, footwear, electronics, machinery, including computers, automobiles and parts, gems, and rubber.

Thailand’s government currently is investing in four major infrastructure projects with the aim of transforming Thailand into a leading ASEAN investment and business center.

South Korea – ASEAN’s important trade partner

A country with big multinational corporations such as Samsung, LG or Hyundai has raised global importance in the value chain within the last few years. With its 17 Free Trade Agreements, including ASEAN, EFTA and EU, South Korea is a major international trading partner.

The country is looking to expand its presence in Southeast Asia and has recently launched talks with ASEAN to update its FTA. The recent Regional Comprehensive Economic Partnership (RCEP) free trade agreement between the ASEAN and ASEAN+ member states is expected to reduce import and export costs significantly and will help facilitate international supply chains.

Today, ASEAN is the second-largest trading partner of South Korea.

The Current Pandemic Situation

Due to the current pandemic situation, our team is faced with planning uncertainties. As a result, we allow ourselves to keep the option open to visit other significant and relevant countries, which play a vital role in the global value chain if the prevailing restrictions make it impossible for us to complete our mission in the countries listed above. Possible alternative destinations are Vietnam, Indonesia, and Malaysia. In the worst-case scenario, we might visit key European hubs in terms of the global value chain.