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1 TOWARD REGIONAL COMPARABLE CLASSIFICATION IN MANUFACTURING SECTOR Experience of Establishing a Regional Cooperative Framework in East Asia EAMS Secretariat Tomoyuki Kuroda Ph.D Workshop on Manufacturing Statistics Rio de Janeiro, Brazil, 24-26 September 2007
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2 Conten ts 1 What Is EAMS? 2 Background of Establishing EAMS 3 Current Activities and Future Vision
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3 Conten ts 1 What Is EAMS 2 Background of Establishing EAMS 3 Current Activities and Future Vision
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4 1. What is EAMS? a) EAMS a) EAMS East Asia Expert Meeting on Manufacturing Statistics b) Foundation b) Foundation January 2007, Tokyo, Japan c) Member Countries c) Member Countries “ASEAN+3” | ASEAN 10 Countries + China, Japan and South Korea
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5 1. What is EAMS? d) Organization in Each Member Country d) Organization in Each Member Country CountryOrganizationCountryOrganization BruneiJPKEMyanmarNSC CambodiaNISPhilippinesNSO ChinaNBSRepublic of KoreaNSC IndonesiaBPSSingaporeEconomic Development Board JapanMinistry of Economy, Trade and Industry Thai NSO Lao PDR NSCMinistry of Industry Ministry of Industry and Commerce VietnamGSO MalaysiaDOS
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6 1. What is EAMS? e) Objective e) Objective Promoting international comparability in manufacturing statistics f) Means f) Means Developing a common, harmonized manufacturing industry Classification at 4-digit, reflecting the characteristics of regional economy Establishing a network of manufacturing statistics organizations in East Asia Implementing support for human resources with the cooperation of member countries
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7 1. What is EAMS? g) Past Meetings g) Past Meetings The 1st Meeting (Jan. 2007, Tokyo, Japan) Adoption of Terms of Reference and Work Program List of contact persons of each organization The 2nd Meeting (Jul. 2007, Vientiane, Lao PDR) Reports by each country on the current status of its industrial classification Adoption of time frame for developing the common manufacturing industry classification at 4-digit *The EAMS shall meet at least once a year.
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8 1. What is EAMS? h) Initiative h) Initiative Chairpersonship (Co-Chair Style) The host country Japan (Ministry of Economy, Trade and Industry) Secretariat Japan ・ Ministry of Economy, Trade and Industry ・ Hitachi Research Institute ASEAN Secretariat
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9 Conten ts 1 What Is EAMS 2 Background of Establishing EAMS 3 Current Activities and Future Vision
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10 2. Background of Establishing EAMS India Hong Kong, Taiwan, Russia, USA, Mexico, Canada Australia, New Zealand Chile, Peru, Papua New Guinea China, Japan, South Korea APEC Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam Cambodia, Laos, Myanmar ASEAN East Asia Summit (EAS) ASEAN + 3 a) Political Framework in East Asia ASEAN+3 region has some established, official frameworks for political cooperation. (e.g. ASEAN+3 Summit, AEM+3)
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11 2. Background of Establishing EAMS b) Economic Growth in East Asia High intra-regional trade ratio in ASEAN+3 (1980: 34.9% → 2003: 52.4%) Vertical production and distribution networks (A qualitative characteristic of manufacturing sector) Rapid growth of economic power in the world (East Asia’s share of global trade is approaching NAFTA’s.) The political cooperation bodies need more accurate, comparable statistics for making regional policies. The Economic growth is attracting private sector’s, academy's and government’s attention globally to East Asia.
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12 c) Manufacturing Industry in East Asia More than 30% of the world manufacturing products has been produced in East Asia in this 20 (or more) years. Manufacturing industry occupies a large proportion of the whole value added in each country in comparison to the other regions. In East Asia, manufacturing industry is extremely important both domestically and internationally. China: Percentage for the mining and manufacturing industry Compiled based on METI-Japan (2006), raw data published by the UN (Not all countries) 2. Background of Establishing EAMS
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13 Although each country essentially uses either ISIC Rev.3 or its own industrial classification based on ISIC Rev.3, detailed evaluation of 4-digit data shows that the number of industries that are actually comparable is relatively low. Number of industries under ISIC Rev.3 Section D (manufacturing industry) (4-digit) Number of such industries that are comparable between ASEAN countries Number of such industries that are comparable between ASEAN countries, China, Japan and ROK 127 48 ( 38% ) 36 ( 28% ) “Actually comparable” here refers to industries that correspond to one item of data under one category (class) of ISIC (rather than being bundled together with other categories), excluding other differences such as definition, statistical unit, scale of survey subject, survey method and so on. 2. Background of Establishing EAMS d) Current Status of International Comparability
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14 2. Background of Establishing EAMS Target area:ASEAN + 3 EAMS -Extending the study to cover all categories of ISIC- 4digit Section D, and foundation of the EAMS. FY 2006 Target area: 8 ASEAN countries + Japan -Basic study on industrial statistics in general FY 2003 Target area: 10 ASEAN countries + Japan -Initial study into the international comparability of manufacturing statistics FY 2004 Target area: 10 ASEAN countries + Japan -Trial studies into the comparability of manufacturing statistics in three industries (Textiles, Motor vehicles, Furniture) FY 2005 e) Past Studies
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15 Conten ts 1 What Is EAMS 2 Background of Establishing EAMS 3 Current Activities and Future Vision
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16 3.Current Activities and Future Vision a) The Whole Picture of EAMS Activity EAMS The data base prototype of East Asia manufacturing statistics (with annotation) Research on those differences other than classification through the comparative matrix Research on confidentiality Other Issues definition, scope, methodology, etc. Completion of EAMIC (Submission to international organizations) The data base of East Asia manufacturing statistics (with annotation) Inserting the data(figures) to the prototype Reconfirming the status of applying ISIC Rev.4 Others countries The data base based on proto type of EAMIC within pilot countries Investigating the EAMIC prototype Data submission for the comparative matrix table at 4-digit, ISIC Rev.4 base Correspondence table to ISIC Rev.4 New census data at 4-digit Correspondence table to ISIC Rev.4 Prototype of EAMIC Pilot Study Classification FY 2010FY 2009FY 2008FY2007
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17 3.Current Activities and Future Vision b) An Illustration of EAMIC (presented at the the 1st EAMS) Focusing on harmony between classification systems ( ISIC, ACIC, NSIC) ISIC Rev.4 Section A Section B Section C Manufacturing Section D : ACIC EAMIC Section A Section B Section C Manufacturing Section D : Compliance 4-digitCurrent: 3-digit Section A Section B Section D : Future: 4-digit Manufacturing 4-digit Manufacturing industry only Section C Manufacturing Converter A standardized ASEAN+3 system of industrial classification (4-digit) for the manufacturing industry
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18 3.Current Activities and Future Vision Objective: Developing the prototype EAMIC Time period: 2 years (FY2007 and FY2008) Participation to the Pilot Study: 4 countries (from the view of balancing the efficiency with the area coverage) Process of Pilot Study: Workshop with model countries c) Pilot Study Model Countries: IndonesiaPhilippinesThailandVietnam Indonesia, Philippines, Thailand and Vietnam
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19 3.Current Activities and Future Vision d) Challenges for EAMS Various developing stage in each country Differences in each statistical system other than industrial classification (statistical unit, survey method, definition of items surveyed e.t.c.) Restriction of budget and/or human resources Maintaining the cooperative framework for more than five years
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20 Thank You for Your Attention!
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