Towards 50
Beyond 50

2021-2022 Annual ReportASEAN-Japan Centre Annual Report 2021-2022

Contents
02
Message from Secretary General03
Our Vision, Our Focus

04
ASEAN-Japan Relations in Data

11
The 18 Stories of Change

12
Goal 1: Inclusive, Resilient and Sustainable Trade
Story 1 Cup of Opportunities
Story 2 Beyond Boundaries
Story 3 Building Bridges for Trade

Story 4 Empowering Sustainable Growth
Story 5 Reimagining Trade25
Goal 2: Sustainable Impact Investment
Story 6 Shaping a Resilient Future
Story 7 Catalysing the Shift to a Circular Economy
Story 8 Promoting Sustainable Impact Investments

Story 9 Pioneering Green Partnerships
Story 10 Forging Future Pathways

37
Goal 3: Sustainable and Responsible Tourism
Story 11 Fostering Responsible Tourism
Story 12 Nurturing Communities and Designing Sustainable Futures
Story 13 Uplifting Cambodia's Spa Professionals

45
Goal 4: Fostering Leadership Exchanges and Empowering Young People and Women
Story 14 Sowing Seeds for a Plastic-Free Ocean
Story 15 Fostering Cross-Border Connections
Story 16 Connecting Hearts and Minds

55
Goal 5: Advocacy, Communication, Social Mobilisation, and Partnership for Change
Story 17 Pioneering a New Era of ASEAN-Japan Engagement
Story 18 Unity for Prosperity-AOIP

60
Embracing Challenges, Inspiring Progress
1Message from Secretary General
Dear Friends,
Aspiration alone is not enough; insight must guideus through complex challenges ahead. By adapting
to regional changes and understanding eachother's needs and goals, we can deepen
partnerships, foster heart-to-heart connections, andenhance the positive impact of our collaboration.

I am delighted to present 2021-2022 annual report,
titled "Towards 50, Beyond 50" as we willcommemorate a momentous milestone - the 50th
Year of ASEAN-Japan Friendship and Cooperationin 2023.
As we reflect on the journey that brought us here,
let us embrace the spirit of aspiration and insight toguide us towards an even brighter future.

This annual report encapsulates our collective
unwavering commitment to nurturing cooperationand friendship that will transcend borders andwithstand the test of time.

For 50 years, our shared vision has united us andfostered a strong partnership, thriving even inchallenging times. As we face limitless possibilities
today, we must use the lessons of the past to guide
us towards a prosperous future.

Our journey has just begun, and immense
possibilities lie ahead. Despite challenges, we
possess the resilience and determination to
overcome anything.

The bonds between ASEAN and Japan are notmerely political or economic; they are deeply
rooted in a genuine sense of friendship, trust, andunderstanding. It is this spirit of friendship that has
empowered us to achieve great milestones,
bolstering regional integration and fostering
sustainable development.

Let us seize this moment to rededicate ourselves tothe principles that have guided us thus far andreaffirm our commitment to an even brighter future.

Warm regards,
Kunihiko Chris Hirabayashi M.D. Ph.D.

.

2

Our Vision
We build stronger bridges among people in ASEAN and Japan.
We become a regional champion of change toward humancentred, inclusive, sustainable and resilient society by contributing
to the realization of the ASEAN-Japan common agenda in ASEAN
VISION 2025 and SDGs through enhancing AJC’s targeted andstrategic mandates in trade, investment, tourism and people-topeople exchanges between ASEAN and Japan.

Our Focus
The driving focus of ASEAN-Japan Centre is achieving results forthe best interests of people in the ASEAN Member States andJapan, particularly focusing on micro, small and medium-sizedenterprises (MSMEs), underserved areas, women, and young
people, building on lessons learned, and recognizing the emerging
and dynamic needs and demands of people in the ASEAN
Member States and Japan.

3

ASEAN-Japan Relations in Data

Japan is ASEAN's major trade partner and investment
source. The trust and complementarity between them
have made their economic relationship flourish,
benefiting both sides.

Enhanced exchanges between ASEAN and Japan
can foster a deeper understanding of each other'sculture, traditions, and values. In co-creating theregion’s future, ASEAN and Japan can findinnovative solutions to social challenges.
Together, we can bring about positive changes inmarginalized sectors of society and ourenvironment.

Despite the challenges brought about by the
pandemic, AJC adapted quickly using digital tools to
promote inclusive, resilient, and sustainable trade,
impact investment, and responsible tourism in supportof ASEAN’s Comprehensive Recovery Framework.
2022 data shows a 25.8% increase in ASEAN's
exports to Japan and a 17.6% increase in Japan's
investment to ASEAN compared to 2019. Thesefigures signify a rebound from the pandemic andhighlight the resilience and potential of the partnership.
Yet, there's room to grow. By leveraging both bilateraland regional economic partnership agreements, andregional platforms for dialogue and cooperation on
issues like climate change, we can deepen our
strategic partnership.

As we celebrate the 50th Anniversary of ASEANJapan Friendship and Cooperation, let us
rededicate ourselves to active engagement.
Let's work together for a more connected,
prosperous region, where the peoples of ASEAN
and Japan thrive.
Join us in this vital endeavor.
Rafaelita (LaLa) C.Castro
Director, Programme Operations

4Fact 1

ASEAN-Japan Relations in Data

In 2022, the trade in merchandise between ASEAN and Japan reached a total of
approximately 266 billion US dollars, marking an increase for the second
consecutive year since 2021, and setting a new all-time high.
The trade balance with Japan resulted in a surplus of 4.6 billion US dollars.

Original Data Source: International Trade Centre (ITC)
ITC calculations based on Japanese Ministry of Finance statistics.
Note: *The service trade data was calculated based on WTO-OECD’s Experimental Balanced Trade inServices Dataset, which is only available for 2021 https://stats.wto.org/dashboard/services_en.html

5

ASEAN-Japan Relations in Data

Fact 2

In 2021 and 2022, Japan’s merchandise imports fromASEAN increased strongly by 14.0% and 19.1% respectively,amounted to US$ 136 billion that was 25.8% higher than the
pre-pandemic value recorded in 2019.

Original Data Source: International Trade Centre (ITC)
ITC calculations based on Japanese Ministry of Financestatistics.

In 2022, the ASEAN became the second-largest
trading partner for Japan in terms of imports ingoods, and Japan was the fourth largest export
partner for ASEAN, following intra-ASEAN trade,the United States, and China.

Original Data Source: ASEAN STATS

Original Data Source: International Trade Centre (ITC)
ITC calculations based on Japanese Ministry of Financestatistics.

6

Fact 3ASEAN-Japan Relations in Data

This remarkable surge is mainly driven by increased imports from three
countries: Indonesia, Malaysia, and Viet Nam. In fact, compared to2021, each of these countries individually contributed around $9.3
billion, $6.5 billion, and $3.6 billion to the total increase in imports,
accounting for approximately 90% of the overall growth.

Original Data Source: International Trade Centre (ITC)
ITC calculations based on Japanese Ministry of Financestatistics.

In 2022, Japan's primary imports from ASEAN were under HS
code 85 for electrical machinery and equipment, accounting for21.9% of total imports. The next highest category was under
HS code 27 for mineral fuels, oils, distillation products, etc.,
which increased by 69.5% from 2021.

7

Original Data Source: ASEAN STATSASEAN-Japan Relations in Data

Fact 4

In 2022, the direct overseas investment (flow) from Japan increasedby 27.7% from the previous year, reaching 26.7 billion USD.
This made it the second-largest source of investment among nonASEAN partner countries, following the United States. Furthermore,this level of investment represented a 17.6% increase compared tothe pre-pandemic year of 2019.

The largest recipient of thisinvestment was the transportationand storage sector, with 19.9 billion
USD, marking an increase of 1.7
times from the previous year.
The sector with the highest growthrate was information andcommunication, which grew 4.5 times
from the previous year to reach 866
million USD. Meanwhile, investment
in manufacturing decreased by 71.2%
from the previous year, amounting toapproximately 1.5 billion USD.
This demonstrates significant
changes in the destinations ofinvestments.

8Fact 5ASEAN-Japan Relations in Data

According to the AJC's online opinion survey*1 conducted in
February 2023 among young adults in ASEAN, aged 18 to
35, the majority of respondents view Japan positively andacknowledge the constructive relations with the country.

International students in Japan arecharacterized by a very high proportionof students from the Asian region, but
those most significantly affected by the
pandemic were students fromSoutheast Asia and East Asia. As of
December 2022, the number ofstudents from ASEAN was about
70,000, a decrease of roughly 30%
compared to 2019.
The number of students from Viet Nam,which accounts for approximately 65%
of all students from ASEAN, decreased
by around 40% compared to 2019, andthis is believed to have contributed tothe overall decrease in the number of
ASEAN students.
The aforementioned survey shows atendency for young people who haveexperience with training or studying inJapan to have high confidence in the
country, so it is necessary to pay
attention to future trends.
9

ASEAN-Japan Relations in Data

Fact 6

In a nationwide online survey*2 conducted by the
AJC in February 2022, the general population in
Japan identified ASEAN as a more importantregional organisation than the EU for Japan's future.

Another targeted online opinion survey*3 conducted in November
2022 among 18-35 year-old young people in Japan found that they
view ASEAN as one of the most important partners for the next
decade, following the USA.

10

The 18 Stories of Change

Our vision transcends the geographic boundaries of
ASEAN and Japan and embraces a shared aspiration toforge a vanguard of change on a global scale. We aim toconstruct an inclusive, sustainable, and resilient societythat puts humanity at its core, building upon the uniquestrength and diversity of our cultures and people.

As we continue to serve the best interests of the people
in ASEAN and Japan, we remain steadfast in ourcommitment. Fuelled by ambition, driven by
responsibility, we pledge to continuously push theboundaries of what is achievable. We are not justseeking advancement; we are pioneering a future where
the dreams of today become the realities of tomorrow.

Today, we proudly present 18 stories of change: each atestament to our unwavering dedication and commitment,each a manifestation of our collective professional
acumen, personal conviction, and sense of duty.

Yuka KUBOTA Ph.D.
Senior Executive Officer

These stories, we believe, are more than justaccomplishments; they are steppingstones towards abrighter, more equitable future.
We invite all of you to join us in this collective endeavour.
We encourage you to share your thoughts and insights
without reservation. Your input is not just valued; it is
crucial in shaping the path we are carving.

11

１

Goal : Inclusive, Sustainable andResilient Trade

Inclusivity, sustainability, and resilience are not just concepts,
but the foundations of progress.

12

The 18 stories of change

Story 1

Goal 1: Inclusive, Resilient and Sustainable Trade

Story 1 "Cup of Opportunities": Advancing the Small andCommunity-based ASEAN Coffee Industry towards Global Excellence

Why coffee?

This programme spurred inclusive dialogue to improve
both coffee quality and the livelihoods of farmers andsmall community-based businesses in the coffee
supply chain. The World Specialty Coffee Conference
and Exhibition 2022, hosted by the Specialty Coffee
Association of Japan (SCAJ), brought together key
stakeholders, fostering an exchange of ideas
worldwide.

Showcasing at the SCAJ Conference was acapstone moment for both the ASEAN Member
States (AMS) and AJC. ASEAN accounts for
32% of all imported coffee in Japan, and withmany AMS recognizing coffee as one of thepriority trade products, AJC – in partnership withall our trade counterparts – pursued to promote
coffee by showcasing the ASEAN Coffee Map
produced in FY2021 as well as “coffee-to-coffee
dialogue” and beyond.

During the conference, AJC hosted a panel
discussion, "ASEAN Coffee Map: The Charm ofCoffee from ASEAN." Small-scale ASEAN coffee
farmers and producers shared their passion for theirproduct and their appreciation for Japanese sellers
committed to enhancing lives and protecting theenvironment.

Market Analysis Report by Grand View Research(2021)[1] highlights the specialty coffee market
size estimated at US$21.9 billion in 2022, with aprojected compound annual growth rate (CAGR)
of 11.3% from 2023 to 2030. Asia including
Japan is positioned as one of the “fastest
growing markets” with an upward CAGR of
13.6% from 2023 to 2030.
Research (Schuit et al. 2021)[2] shows specialty
coffee can indeed generate not only elevatedincome and farm profitability but also positiveenvironmental benefits – all of which is the
pursuit of AJC.
[1] Grand View Research. 2021. Accessible athttps://www.grandviewresearch.com/industryanalysis/specialty-coffee-market-report[2] Schuit P, Moat J, Gole TW, Challa ZK, Torz J,
Macatonia S, Cruz G, Davis AP. 2021. The potential
for income improvement and biodiversity conservation
via specialty coffee in Ethiopia. PeerJ 9:e10621

The special evet
video

13

Key achievements
Inclusive and Inspired Engagement: The
AJC's special event at the SCAJ Conference
2022 successfully fostered an inclusive dialoguethat involved a diverse range of stakeholders.
From farmers, consumers, government
representatives to academics, the event
attracted nearly 120 people in the audience tolisten to their stories and help convert to be a
distributor, buyer, or new customer.

EnglishAction-oriented Dialogue for Inclusive,
Resilient Coffee Business in ASEAN with a
Sustainability Outlook: The event generated
action-oriented discussions centred around: a)each unique strategy to promote ASEAN coffee
in Japan, and b) strategies for sustainability
coffee business with response to climatechange, known in Japan as the “2050 issue”.
The discussions also paved the way for actionoriented strategies, including: i) the concept ofan "ASEAN Resilient Coffee bloc" by setting a
regionally standard price of coffee within ASEAN
to avoid volatile price fluctuations due toeconomic crises in other parts of the world, ii)
microfinance initiatives for farmers, and iii) theneed for ethical standards in business practices.

Japanese

Significant Media Attention and Future
Collaborations: Across Japan, 14 local
newspaper or jounal articles (10 in hard copy
and 4 newspaper articles online) have featured
the charm of ASEAN coffee in Japan, as a resultof the event. The event not only garneredsignificant media attention, but also stimulated
potential future collaborations and capacitybuilding efforts.

"The coffee industry is blessed with countless committed individuals with innovative ideas.
From the catalytic actions of microfinancing for coffee farmers to a grand vision of a “coffee
bloc in ASEAN” for a regionally standard coffee price, AJC is here to facilitate exchange andpromotion. With you, I am united with all my heart to reshape this industry to be more
inclusive, sustainable and resilient."
Aya ONO Ph.D.
Programme Manager
14

The 18 stories of change

Story 2

Goal 1: Inclusive, Resilient and Sustainable Trade

Story 2 "Beyond Boundaries": ASEAN MSMEs' Strategic Advance into
the Dynamic Japanese Market

As part of our commitment to AJC’s Goal 1's vision ofpromoting inclusive, sustainable, and resilient trade,
AJC recognizes the pivotal role of the comprehensive
understanding of contemporary Japanese consumer
markets.
In October 2022, AJC conducted an in-depth study of
the Japanese consumer market. The aim was toprovide comprehensive guidance to the ASEAN
Member States, specifically targeting SMEs andstart-ups considering entry into Japanese markets.
The study identified several key success factors vitalfor success in Japan.
In a society of Japan that values dedication andexpertise, new market entrants and re-entrants must
display a high level of proficiency, focusing on specifictarget segments or narrowly defined product portfolios.
A deep understanding of targeted consumers,
including their lifestyles and attitudes, is of prime
importance, especially in the E-commerce era where
manufacturers have direct control over the marketingmix and messaging.

15

Key findings
Understanding the Japanese Consumer:
A comprehensive understanding of the Japanese
consumer is vital for ASEAN MSMEs targeting theJapanese market. Consumer preferences are
shifting towards ASEAN products, including wellness
products, storytelling fashion brands, and ecofriendly furniture. Consumer benefits, not justproduct features, drive sales in this market.
Market Segmentation: The Japanese market is nothomogeneous. Various significant segments,
including innovative-oriented, stability-oriented, andpragmatists, have distinct behaviour and attitudes
that must be considered in any market entry or
growth strategy.
Quality and Service: Japan is known for its highconsumer service standards. The quality of both the
product and service plays a critical role in success in
the Japanese market. Consumer complaints should
be taken seriously and used as a feedback
mechanism to improve offerings and maintain highstandards.
Opportunities for ASEAN: Several promisingbusiness opportunities may exist for ASEAN MSMEs
that are interested in entering the Japanese
consumer market. These include the health foodsector, valued at over $6 billion in Japan, halal food—which has been widely recognized for meeting theneeds of tourists from Muslim countries—products
designed for the elderly population, and pet
products.

"While Japan could be a very lucrative market, ASEAN MSMEs need to fully understand its
intricacies to be able to take advantage of its potential. I believe that providing them with theknowledge that they need empowers them to successfully navigate the Japanese market."Rafaelita (LaLa) C.Castro
Director of Programme Operations

16

The 18 stories of change

Story 3

Goal 1: Inclusive, Resilient and Sustainable Trade

Story 3 "Building Bridges for Trade": Harnessing Free Trade
Agreements for ASEAN-Japan's Inclusive, Resilient, and Sustainable
GrowthKey takeaways

Aligned with the objectives of Goal 1 of AJC, ourefforts have been focused on enhancing the practicalknowledge of bilateral and regional Free Trade
Agreements (FTAs) among SMEs in ASEAN andJapan. Key agreements such as the ASEAN-Japan
Comprehensive Economic Partnership (AJCEP) and
the Regional Comprehensive Economic Partnership(RCEP) play significant roles in our trade promotion
strategy.

Power of FTAs: The utilization of Free Trade
Agreements (FTAs) including the AJCEP and
RCEP has opened numerous avenues for tradeand investment opportunities. These tools havebeen instrumental in promoting resilient supply
chains and fostering inclusive growth and gaining
benefits of FTAs.
Broad-Spectrum Impact: AJC's initiatives,
through familiarization seminars, havesuccessfully touched upon various sectors electronics, automotive, textiles, garments, andfood security. The strategic application of FTAs inthese sectors has facilitated significant trade
benefits, market access, tariff reductions, andincreased exports.

Throughout the year, AJC conducted six FTA
familiarization seminars. These informative sessions
aimed to promote resilient supply chains in various
industries through the effective use of FTAs.
The industries we focused on included theelectronics and automotive sectors, with additional
emphasis on inclusive and sustainable textile andgarment sectors, and food security. Those FTA
related seminars have always active engagementwith high satisfaction rate among around 600
participants from the business, academe, andgovernment sectors of Japan and ASEAN.

Addressing Food Insecurity: Trade, particularly
aided by strategic use of FTAs, has madesignificant strides in reducing food insecurity byconnecting agriculturally diverse regions withthose that have limited potential, ensuring abalanced distribution of resources.

17

In discussions about food security, a senior government
officer noted that trade has helped reduce foodinsecurity. This is achieved by connecting regions withlimited agricultural potential and large populations toregions with comparative advantages in agriculture.

Government representatives and industry experts
from across ASEAN participated as resource
speakers in these seminars, providing crucial insights
and discussing the strategic utilization of FTAs.
A government resource speaker from Indonesia
noted that FTAs and Economic Partnership
Agreements (EPAs) could provide guarantees for
multinational companies to establish supply chains,even in unpredictable geopolitical situations.
A senior expert from Thailand highlighted the role of
ASEAN FTAs, including AJCEP and RCEP,
in creating beneficial trade and investment
opportunities. These have significantly contributed to
the resilient auto supply chain in ASEAN and Japan.
As an example, the Thai automotive industry houses
not only assembly factories but also research anddevelopment centres for top Japanese car
manufacturers.

The way forward
Continued Emphasis on FTA Utilization: AJC
will continue to emphasize the strategic use of
FTAs, guiding SMEs in leveraging these
agreements to unlock further trade andinvestment opportunities.
Collaborative Improvement of Trade
Agreements: AJC aims to collaboratively work onenhancing the AJCEP and RCEP and otherbilateral and multilateral FTAs, making them moresustainable, resilient, and inclusive. We plan toencourage and facilitate discussions andseminars with stakeholders to reach this goal.

A corporate leader from the Philippines emphasized
the potential benefits of preferential trade
agreements. These could provide zero or low tariffs
for Philippine exports to Japan, including apparel,
footwear, and bags.

Expanding Industry Focus: AJC will look toextend our focus to other potential sectors that
could benefit from the effective application of
FTAs, thereby promoting a more inclusive andsustainable trade environment.

"Dissemination of the free trade agreements is one of the most important tasks forstrengthening and expanding the economic relation between ASEAN and Japan and ensurethat all business sectors of our two regions have awareness and gain the maximum benefit
from the free trade agreements."
Phutsakhon Sengmaniphon
Assistant Director, Research and Policy Analysis

18

The 18 stories of change

Story 4

Goal 1: Inclusive, Resilient and Sustainable Trade

Story 4 "Empowering Sustainable Growth": Transforming the Futureof Woodworking and Forestry in CLMV through Innovation andCapacity-Building
Key achievements

AJC continues to be committed to capacity-building
and export development in the ASEAN Member
States (AMS). A significant step in our journey was
the recent three-day workshop aimed at boosting thewoodworking and creative product development
sector in the CLMV region (Cambodia, Lao PDR,
Myanmar, and Viet Nam). With a high participation ofover 420 individuals - including 86 online attendees
from Lao PDR, Myanmar, and Cambodia – AJC
reinforced the importance of skill development,
creativity, and sustainability within the woodworking
and forestry industry.

Empowering Creativity and Innovation:
AJC prioritized the development of creative andinnovative capabilities in CLMV's designers. By
facilitating learning from Japanese experts,
attendees gained crucial insights into
international trends and standards, enablingthem to align their designs to meet global
market expectations. This upskilling initiative willserve as a catalyst for the growth of CLMV's
woodworking and creative sectors.
Promoting Sustainability: In line with global
commitments to the environment, our workshop
emphasized sustainable design and its
integration into the creative process. We
discussed the importance of sustainable
practices in overcoming environmental
challenges and meeting the demands of atechnologically advanced era. This new design
philosophy was aimed at promoting a circular
economy approach within the forestry industry,
contributing to its long-term viability andecological sustainability.

Forestry plays a critical role in CLMV's economy, withconsiderable export gains from timber and related
products. Yet, despite this potential, the industry isplagued by challenges, such as a lack of high-value
primary forest products and limited creativity among
local businesses. Addressing these obstacles, ourworkshop was a strategic intervention to promote
growth and sustainability within this sector.

Fostering Youth Development:
Recognizing the potential of young designers,
the workshop included personal advisory
sessions. These were geared towards
enhancing their skills, knowledge, andunderstanding of crucial elements like material
usage, design narration, copyrights, andcollaborations. This guidance empowers themto contribute significantly to CLMV's design
future.

19

The way forward

The success of AJC’s workshop was evident in its
intangible outcomes - the upskilling of participants,
promotion of sustainable design practices, and theempowerment of young designers. The knowledge
and skills acquired by the attendees are crucial forthe production of innovative, quality, and globallyaligned products.

Deepening technical woodworking skills for
manufacturers.
Facilitating exchange opportunities among young
ASEAN and Japanese designers.
Encouraging a design mindset among the youth
and offering guidance for starting a designbusiness.
Exploring synergies between forestry productionand eco-tourism.

The participants highly valued the experts' insights
and lectures covering the entire value chain ofcreative products. They appreciated thecomprehensive coverage, starting fromconceptualizing ideas, transforming them into
innovations, and then addressing branding strategies
and collaborations with distributors and sellers. The
discussions also included important considerations
such as copyright matters, which further enriched theparticipants' understanding of the holistic process
involved in the development and commercializationof creative products.
The workshop represents a critical step towards thebetterment of the woodworking and creative sectors
in CLMV. We are excited about the futurecollaborations and capacity-building initiatives that lie
ahead, as we continue to strive for sustainablegrowth and prosperity in the region.

"As a region that has undergone remarkable development and now stands on the cusp of atransformative future, CLMV is endowed with tremendous potential to integrate innovative,
sustainable, and environmentally-responsible approaches, driving green and inclusive
growth. With technical expertise, cooperative support, and impactful investments fromJapan and other ASEAN Member States, I strive to bridge the gap and connect stakeholders,
empowering CLMV to achieve higher value-added capabilities and elevate its position in the
global value chain. Together, we are committed to driving sustainable development, ensuring
a prosperous and equitable future for the region and beyond."
Nguyen Tuan Anh Ph.D.
Programme Coordinator

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The 18 stories of change

Story 5

Goal 1: Inclusive, Resilient and Sustainable Trade

Story 5 "Reimagining Trade": Fostering MSME Growth in ASEAN
through Digital Connectivity with JapanThe ongoing digital revolution has the potential to
drastically cut costs associated with global trade,
streamline coordination across global value chains(GVCs), accelerate the diffusion of ideas andtechnologies, and enhance connectivity amongst
businesses worldwide.

In response to this evolving regional landscape, AJC
implemented this pilot activity to find a feasible,
practical, and sustainable solution for ASEAN MSMEs
to digitally promote their strategic products as well as
to connect potential Japanese and inter-ASEAN
importers and buyers.

Micro, Small and Medium Enterprises (MSMEs) areintegral to the economic development and growth of
the ASEAN Member States. According to the
ASEAN Secretariat[1], there are about 70 million
MSMEs in ASEAN, accounting for between 97.2% –99.9% of total establishments in the ASEAN
Member States. It is also estimated that regionally,
the MSMEs contribute 85% to employment, 44.8%
to GDP and 18% to national exports.

"Key strategies included i) working with top ecommerce platforms in Japan to understand support
for cross-border suppliers; ii) examining two major
Japanese sites to identify ASEAN products soldonline; iii) collaborating with an expert consultant on
Japanese e-commerce market navigation, and hosting
webinars to equip ASEAN MSMEs for Amazon Japan;iv) conducting a survey to understand e-commerce
challenges; and v) holding a follow-up workshop forparticipants.

As economies increasingly digitize, digital trade,characterized by cross-border ordering and deliveryof goods and services through networks, continues
to gain prominence. For instance, according to a
recent survey, 70% of MSMEs within the ASEAN
markets perceive digital tools and technologies as agateway to untapped markets. Therefore,
understanding the unique features and potential of
digital trade is critical to drive evidence-based
policymaking in this area (Lee, 2021).

[1] https://asean.org/our-communities/economiccommunity/resilient-and-inclusive-asean/development-of-microsmall-and-medium-enterprises-in-asean-msme/

21

Key results
Strengthened Network: By partnering with
ASEAN Access[2], an on-line based businessinformation portal for MSMEs, AJC enhanced its
network with ASEAN MSMEs that participated in
ASEAN Access.
[2] https://asean.org/asean-access/Insightful findings: Over 900 products on
Japanese EC sites (Yahoo Japan and Rakuten)
were scrutinized, categorized based on the Nice
Agreement's classification of goods and services,and visualized using a mind-map tool for the each
ASEAN Member State. Processed foods andaccessories were the top products traded on these
Japansese e-commerce platforms.
Practical EC Training Sessions: AJC designed
and executed six sessions titled “Selling Your
Products on Amazon Japan” and “Branding
Strategy -for Your Potential on the Japanese EC
Market-“. These sessions aimed to offer practicaladvice from digital trade consultants and experts. In
total, 200 ASEAN MSMEs participated, reflecting astrong interest in the initiative. Online interviews
with participants revealed that the training sessions
were deemed “informative” and “valuable” by
ASEAN MSMEs. There has even been a
successful case of a participant kickstarting an EC
business following the sessions.

The way forward
Undertake focused research on specificproducts to assess their market potential, withconsiderations such as inclusivity, such as
produced by women-lead businesses or startup business from developing regions, andsustainability within the regional value chain.
This will inform the development of moretargeted marketing strategies.
Expand our network with EC corporations andtargeted ASEAN MSMEs to continue
understanding the potentials of ASEAN
products in the Japanese market.
Implement new sustainability measures in our
future initiatives, including promoting digitaltrade strategies that emphasize environmental
sustainability.

"Positioned as a great equalizer, e-commerce serves as the platform through which we empower
ASEAN micro, small, and medium enterprises (MSMEs), equipping them with the knowledge andtraining to seamlessly engage in Japan's e-commerce landscape."
Michihiro TANABE
Programme Manager

22

23

Goal 2: Sustainable Impact Investment

When we invest in social causes, we're not merely doing good,
we're constructing a superior and sustainable business ecosystem.

24

The 18 stories of change

Story 6

Goal 2: Sustainable Impact Investment

Story 6 "Shaping a Resilient Future": Advancing Sustainable Impact
Investment in ASEAN and Japan

AJC's role is to promote sustainable impact
investments that enhance livelihoods for marginalized
beneficiary groups, including women, youth, and thedisabled in ASEAN.
In alignment with Goal 2 of the AJC 5.0, AJC havesolidified its presence as a key facilitator forsustainable impact investments from Japan to ASEAN.
Our commitment is grounded in the recognition of thevital role of such investments in achieving ASEAN’s
Comprehensive Recovery Framework (ACRF) as wellas the Sustainable Development Goals (SDGs), an
ambition that demands an estimated $4.2 trillion peryear and is further amplified by various crises,
including the COVID-19 pandemic. Bloomberg
Intelligence estimates that global Environment, Social,
Governance (ESG) assets are on track to exceed $53
trillion by 2025, representing more than a third of the$140.5 trillion in projected total assets undermanagement[1]Key achievements
Recognition as Impact Investment Facilitator:
AJC has been acknowledged as a crucial actor inpromoting impact investments, demonstrated byour endorsement as a Support Member for both
the Japanese National Advisory Board (NAB) of
Impact Investment and the Impact-Driven
Financial Initiative (IDFI).

Solution-oriented Impact Investing has become acritical tool in this regard. As of December 2022, thesize of global impact investing market is estimated overa trillion dollars in assets under management[2].

Active Engagement: Our active involvement invarious impact investment discussions,conferences, and consultations, including
participation in the invite-only G20 Impact
Partnership Consultation, has boosted ourpresence and influence in the field of impact
investment.

This investment strategy is designed to generatemeasurable societal impacts along with financial
returns, thereby contributing to understanding the
progress towards the achievement of the ACRF and
SDGs. This aligns with the Grand Design of New
Capitalism[2] championed by Prime Minister Kishida.

Knowledge Creation: Through a series ofresearch reports, we have mapped out key
practices and players shaping the current
ecosystem of impact investment in five countries.
These reports have been instrumental inadvancing the ecosystem of impact investment.

[1]https://www.bloomberg.com/professional/blog/esg-assets-may-hit53-trillion-by-2025-a-third-of-global-aum/[2] Global Impact Investment Network, 2022 Sizing the Impact
Investing Market 2022 https://thegiin.org/assets/2022Market%20Sizing%20Report-Final.pdf[3] https://www.japan.go.jp/kizuna/2022/06/why_japan_is_a_buy.html

25

Our partnerships with key entities like Japanese
National Advisory Board, and Asian Venture
Philanthropy Network, which is the largest social
investment network entity in Asia, Real Tech Holdings
and several ASEAN governments demonstrated ourcommitment to promote impact investment, while ourseries of research reports further advanced theecosystem of impact investment in the ASEAN region.
In summary, our concerted efforts have placed AJC asa key player in the field of sustainable impact
investment between ASEAN and Japan, and we lookforward to further advancing this movement in theupcoming fiscal year.

The way forward
Amplify AJC's Voice: We aim to participate in
key events such as the annual Nikkei event,
presenting our work to a global audience andshowcasing the growth potential of impact
investment in ASEAN.
Collaborative Dialogues: We plan to initiate aseries of bilateral dialogues with countries thatparticipated in our landscaping research, codeveloping country-specific policy
recommendations to advance the ecosystem of
impact investment.
Internal Training: To enhance our efforts, wewill conduct an internal Training Workshop on
Impact Investment. This will ensure a deeper
understanding of impact investment across all
AJC groups, integrating the benefits of impact
investment into our activities.

"As an "Enabler", I am with you on this exciting journey of trailblazing, innovating and shaping
the ASEAN market of high impact investing. Change is frequent in an evolving field like impact
investing, attributed mainly to the common intention to drive societal change. Tolerance forchange and failure is a key feature to achieve double materiality – both economic and social
returns. Let us travel together, hopefully."
Aya ONO, Ph.D.
Programme Manager
26

The 18 stories of change

Story 7

Goal 2: Sustainable Impact Investment

Story 7 "Catalysing the Shift to a Circular Economy": Empowering
MSMEs and Optimizing Resource Utilization in ASEAN

Key achievements

The project aimed to support Micro, Small, andMedium Enterprises (MSMEs) transition to a circular
economy by equipping them with the knowledge andtools to optimize waste management practices andimprove resource efficiency. This was achieved
through a series of online workshops that provided
general information about the circular economy andoffered sector-specific insights into agriculture,
tourism, and fashion & textile – key sectors in the
ASEAN region.

Understanding the Circular Economy: The
workshops featured respected figures in Circular
Economy Development from both Japan and
ASEAN, including business leaders,
researchers, representatives from the Ministry of
Economy, Trade, and Industry (METI) Japan,
and the ASEAN Secretariat. These experts shedlight on the concept of the circular economy,
highlighting the environmental benefits andbusiness opportunities it presents. Participants
gained knowledge about policy frameworks, bestpractices, and practical experiences, whichenabled them to make informed decisions andexplore circular practices in their businessmodels.

The project successfully achieved its objective ofpromoting circular practices among participating firms
through a comprehensive program of lectures,
toolkits, and one-on-one consultations. By enabling
MSMEs to drive sustainable growth and enhanceresource efficiency, the project contributes
significantly to the economic growth andenvironmental resilience of the ASEAN region.

Providing Practical Business Support: Afterthe lectures, experts furnished the participants
with practical toolkits. These toolkits were
designed to help MSMEs review, analyse, andidentify areas in their businesses where resource
management could be improved and thetransition to a circular economy could beinitiated. The firms could apply this new
knowledge directly to their operations, identifying
opportunities for better resource management
and sustainable product development.
Supporting Committed Firms: Customized
one-on-one meetings were arranged with
consultants for firms committed to the circulartransition. These meetings addressed the uniquechallenges these firms faced at different stagesof their transition to a circular economy model.
The consultants provided in-depth reviews ofbusiness models, identified competitive
advantages, and connected firms with suitablepartners to address their specific issues. This
personalized consultation and facilitation aided
the firms in effectively implementing their circulartransition plans.

27

The way forward
The success of the series of online
workshops on Circular Economy capacity
building signifies the first step towards a moresustainable future as well as increasing
opportunities of investment from ESG
oriented investors.
The journey continues with further strategic
actions such as fostering continued learning,
strengthening partnerships, providing accessto funding and support, scaling up circularmodels, and advocating for supportive
policies.
By embracing these actions, MSMEs in the
ASEAN region will be empowered to drive
sustainable growth, enhance resource
efficiency, and contribute to a resilient andcircular economy.

"In recognizing the boundless potential of creativity, I am driven by a steadfast commitment tofacilitate a harmonious union between the vibrant energy of young, innovative minds andbusinesses. Through this powerful alliance, we will usher in a new era of prosperity, sustainability,and progress across Japan and the ASEAN region."
Nguyen Tuan Anh Ph.D.
Programme Coordinator

28

The 18 stories of change

Story 8Goal 2: Sustainable Impact Investment

Story 8 "Promoting Sustainable Impact Investments": Harnessing the
Circular Economy for Waste Management and Energy Circulation in
ASEAN and Japan
According to the recent global circularity report[1], only
7.2 percent of used materials are cycled back into our
economies after use. ASEAN also recognised that its
economic resilience has been increasingly threatenedby resource depletion, unsustainable patterns of raw
material consumption, inefficient throughout productvalue chains, and climate change[2].

In an attempt to address the urgent issue of plastic
waste management, AJC facilitated pre-matchedindividual meetings that successfully brought together
government representatives from the ASEAN Member
States and nine innovative Japanese businesses,
including startups. Over 40 such interactions were set
up, fostering an environment for mutually beneficial
opportunities and knowledge exchange.

It, therefore, adopted the Framework for Circular
Economy for the ASEAN Economic Community (AEC)
in 2021[3]. AJC’s robust efforts in FY 2022 havefocused on catalysing the development andapplication of innovative solutions to criticalenvironmental challenges.

In a highlight of the project, AJC successfully enabled
the Japan Clean Ocean Material Alliance [4](CLOMA) topresent their feasibility study in Indonesia under theJapan-ASEAN Integration Fund[5] (JAIF) at the 'Japan ASEAN Business and Investment Forum'.

AJC has facilitated the connection of 'Needs' in the
ASEAN Member States (AMS) with 'Seeds' frominnovative Japanese businesses, particularly startups
tackling plastic waste issues. These are geared
towards realizing a sustainable Circular Economy in
the ASEAN region.

From the resource persons of the Royal Embassy ofThailand,The participants learned about the trend of
Thailand-based Japanese companies in the
manufacturing industry shifting their businessmodels for long-term expansion.
Through this meeting, the participants were alsoable to learn about the latest developments inplastic recycling by Japanese companies inThailand.

[1] Circle Economy. (2023). The circularity gap report 2023 (pp. 164, Rep.). Amsterdam: Circle Economy[2] https://asean.org/wp-content/uploads/2021/10/Brochure-CircularEconomy-Final.pdf[3] https://asean.org/wp-content/uploads/2021/10/Framework-forCircular-Economy-for-the-AEC_Final.pdf[4] https://cloma.net/english/[5] https://jaif.asean.org/

29

Key takeaways

The Government-to-Business meeting arranged by
AJC resulted in connecting the latter to the Industrial
Waste Management Division of the Department ofIndustrial Works in Thailand as well as wider
government stakeholders in ASEAN to seek their local
business partners.

Solving Urgent Issues through Innovative
Technologies: The economic growth in ASEAN
has underscored the urgent need for effective
waste management and recycling solutions.
These meetings helped underline the vastpotential for Japanese businesses to provide
their innovative and cutting-edge solutions tothese urgent social issues in ASEAN.
'Modal Shift' in Business Trends: The
meetings revealed a notable trend – Japanesecompanies are shifting their business focus
towards more sustainable solutions that addresssocial issues in ASEAN. This shift needs to berecognized and incorporated in future activities
to promote trade and investment.
Importance of Business Linkages: Achieving
ambitious goals within the Circular Economy
framework (such as waste-to-energy conversion,
CO2 emission reduction, and plastic waste
reduction) requires robust cooperation in thebusiness sector. Positive feedback from ASEAN
governments and Japanese businesses
underscored the significance of these linkages
and pointed towards further potential for AJC to
facilitate such connections.

The way forward
In FY 2023, AJC plans to conduct a follow-up
survey to monitor the outcomes of thesemeetings. It will also continue to encourage
Japanese businesses to visit the ASEAN
Member States and to participate in onsite
business matching activities.
By continually organizing Government-toBusiness meetings, AJC seeks to persistently
connect the "Needs" in the ASEAN Member
States with the "Seeds" or solutions offered by
Japanese companies' innovative technology.
This aligns with the common goals of both
ASEAN and Japan and will contribute to asustainable and prosperous future.

"I believe that Japanese technology, especially in the fields of circular economy and recycling,is among the best in the world. I am constantly pondering how to introduce such technology to
ASEAN and attract investments from Japanese companies. However, my strong passion lies increating a bright future together with ASEAN."
Takeko ITO
Programme Specialist

30

The 18 stories of change

Story 9Goal 2: Sustainable Impact Investment

Story 9 "Pioneering Green Partnerships": Fostering Sustainable
Investment Through Lao PDR-Japan Strategic Collaboration

AJC reinforced its bond with the Lao Ministry ofPlanning and Investment (MPI) through a strategic
investment promotion initiative. By strategicallyinviting and engaging with the Minister of Planningand Investment of Lao PDR, H.E. Khamjane
Vongphosy, to Japan, the project aimed to facilitate
corporate engagement between Japanesebusinesses and government representatives and theLao MPI. It marked a significant milestone in
reinforcing our mutual commitment to sustainable
and inclusive economic development.

H.E. Khamjane Vongphosy

The primary objective of this project was to build
robust business relationships between Japanese
corporations and Lao businesses and government
authorities. This involved company visits, open
dialogues, and an Investment Promotion Seminar.

A newly engaged Japanese company, seeking toestablish a cost-effective renewable energy hub in
Lao PDR, initiated engaging conversations withrepresentatives of the Special Economic Zones(SEZs). These representatives showed great interestin understanding the precise requirements andexpectations of their potential Japanese collaborators.
Questions were put forth about the land size needed
for a renewable energy plant, the water and energy
requirements, and the timeline for construction.

Minister Khamjane Vongphosy's visit, with 12
business delegates, to Japanese companies and theJapan Business Federation highlighted Lao PDR's
potential for green growth. Its strategic ASEAN landlinked location and renewable energy resources
present exciting prospects. The visit led to a seriesof business discussions and government-tobusiness dialogues.

Following this, one company presented an inquiry to
the MPI government about the cost of power,
emphasizing the need for a special tariff. They argued
that without this, their efforts towards establishingenergy-generating businesses may not bear effective
contributions to Lao PDR.

31

AJC hosted the Investment Promotion Seminar, wellreceived with a 90.3% usefulness rating. The seminar,
attended by 195 participants (55 in-person and 140
online), served as a platform to hear directly from Laogovernment officials and SEZ companies. The pitchesfrom SEZ companies were particularly well-received.

Key takeaways
Realizing Green Potential: Lao PDR's
renewable energy potential opens doors forJapanese companies seeking cost-effective,
sustainable business opportunities.
Exploring Collaboration Opportunities:
The increased interaction has fostered anenvironment conducive to future business
partnerships and collaborations.

The way forwad
Encouraged by the promising results of thisinitiative, AJC is eager to leverage this momentum
to further encourage fruitful collaboration between
Japanese and Lao businesses, as well as
government entities.

Positive Feedback: The high rating for theseminar underscores the value of open
communication platforms to foster understanding
and collaboration.

Future efforts will include exploring further
sustainable business opportunities, expanding thescope of interaction, and facilitating more open
dialogues to strengthen our partnership further.
Our continued dedication will undoubtedly lead tosustainable and inclusive growth in the investment
sector.

"By considering and sharing the common environmental objectives with our counterparts, such as
the utilization of natural resources, promoting sustainable land use, reducing greenhouse gas
emmisions, addressing wastmanagement and pollustion issues, I have realised more the potential ofthis project. I want more people to know this and explore collaboration opportunities."
Yasushi ISHIDA
Assistant Director, Trade and Investment

32

The 18 stories of change

Story 10Goal 2: Sustainable Impact Investment

Story 10 "Forging Future Pathways": Unveiling Odawara's VibrantStartup Ecosystem and Fostering ASEAN-Japan Collaboration

Nestled in the heart of Kanagawa prefecture,
Odawara, a city steeped in rich culture and history,
stands as a beacon of entrepreneurship, pulsatingwith an innovative startup scene and a progressive
approach towards sustainability and preservation.
Witnessing the immense potential for connection
between ASEAN's dynamic markets and Odawara's
unique entrepreneurial ecosystem, the EnterpriseSingapore Tokyo Overseas Centre and AJC joined
hands. From 13 to 14 March 2023, they led a diversedelegation of ASEAN business representatives,
government officials, and students on an insightful
two-day excursion into Odawara's thriving startup
landscape.
The mission was designed to inspire meaningful
dialogue, establish valuable connections, and open
the doors for the exchange of innovative solutions tosocietal challenges. These resultant partnerships are
set to herald a new era of shared prosperity for both
ASEAN and Japan.

Objectives of the joint visit were;
1. To delve into Odawara’s unique startup culture,
examining the key sectors of innovation, investment
landscape, and business practices.
2. To foster relationships with Odawara’s local
government and entrepreneurs, promoting dialogue
and potential partnerships with ASEAN government
officials, the business community, and students.
3. To appreciate and understand local businesses’ efforts
in sustainability and cultural preservation.

Odawara city

33

Odawara castle

Key highlights
Integrated Entrepreneurship Support
Programme: The Odawara Hakone Chamberof Commerce and Industry conducts anannual entrepreneurship programme.
Targeting individuals intending to start or
those who have started a business within thelast two years, the program covers crucial
topics including business communication,accounting, marketing strategies, andeffective web usage. Even post-completion,
the Chamber continues to support theentrepreneurs, facilitating consultations andpotential loan options.
Hometown Foundation's Startup Support:
The '83 Foundation', established byentrepreneurs who nurtured their startups into
multinational companies, initiated the'Odawara Challenge Program ARUYOODAWARA' in 2022. Targeting Generation Z
individuals across Japan, the programprovides financial assistance, startup
consultations, networking opportunities,business matching, and office sharing in
Odawara City and the western region of
Kanagawa Prefecture.

The way forward
Building on this mission's success, our next stepis to initiate an ASEAN-Japan local co-creation
startup support program in Odawara. This
program will highlight the unique attributes of
local Japanese cities and foster networking
opportunities between ASEAN government
officials, business community, and students.
Furthermore, we plan to facilitate the introductionof Odawara's innovative ideas, businesspractices, and products to ASEAN countries.
Parallel to this, AJC has a plan to support
Fukuoka city's efforts to establish itself as a
global financial hub, connecting it with ASEAN
representative offices. Our continued efforts inOdawara and Fukuoka underline our commitment
to fostering strong and mutually beneficial
ASEAN-Japan relationships.

Roundtable Discussion: The event featured
a roundtable discussion where an Odawara
entrepreneur presented an innovative solution
addressing the city's aging population. This
spurred engaging conversations about
potential ASEAN-Japan partnerships to tackle
societal challenges, underlining Odawara's
potential as a networking hub.

"There are beautiful landscapes, cultures, cuisines, and ideas in Japan's regional areas that are notknown to ASEAN. By introducing and connecting Japan's regional areas to ASEAN governments,
the business community, and students, I hope to foster new businesses and networks."
Tomoko ONUKI
Programme Manager

34

35

Goal 3: Sustainable and Responsible
Tourism

Each journey, taken sustainably and responsibly, is a step toward
preserving the paramount priority for our planet.

36The 18 stories of change

Story 11

Goal 3: Sustainable and Responsible Tourism

Story 11 "Fostering Responsible Tourism": Shaping Travel for
the Future with Insights from Japanese Young People

AJC, as part of its commitment to promoting
sustainable tourism, conducted an insightful webinar
titled "Japan’s Overseas Travel Trend and How
Japanese Young People View Sustainable and
ASEAN Tourism" to disseminate the results of acomprehensive survey conducted in FY2022.
The survey aimed to understand the travel
behaviours and attitudes of young Japanese
travellers, specifically those belonging to the“Gen Z” and “Millennial” demographics aged 15-35.
Survey Purpose and Methodology:
The primary focus of this survey was to gauge theparticipants' sensitivity towards sustainability andtheir interest in Southeast Asian tourism,
understanding their sense of responsibility as
travellers, and their social media usage for travel
information. The study was conducted in
December 2022, and involved 1,000 respondents,
predominantly females, aged between 15-35 years,
who expressed significant interest in travel.

The digest report is avilable here

Webinar Overview:
The webinar, conducted in English with 45
participants from the ASEAN Member States on
March 14, 2023, was designed to disseminate to
ASEAN stakeholders the results of the youth survey.

37

Key findings of the survey

Takeaways from the survey and webinar
Cultivating an ASEAN Appeal: The sustainedinterest in overseas travel, particularly towards
ASEAN destinations, offers an excellent
opportunity to bolster tourism promotion,
focusing on the region’s unique attractions.

An Eye Towards the Horizon:
Overwhelmingly, 85% of the surveyed
individuals expressed enthusiasm about futureinternational journeys, predominantly favouring
sightseeing activities. Destinations within the
ASEAN Member States, with Thailand andSingapore leading the pack, were the mostsought after.

Harnessing the Power of Social Media:
The dominant role of Instagram in shaping
travel decisions underscores the potential ofutilizing social media platforms morestrategically to promote tourist destinations.

The Digital Guide: Instagram surfaced as thepremier social media platform influencing
travel decisions, highlighting its impact inframing international travel trends.

Championing Sustainability in Tourism:
The heightened awareness andimplementation of sustainability and the strong
interest in sustainable tourism initiatives
present a unique opportunity to infusesustainability into future tourism promotions.

Embracing Sustainable Consciousness:
A substantial 70% of participants
demonstrated understanding of "SDGs" and"sustainability," with about 60% applying theseprinciples in their everyday routines. Moreover,an encouraging 80% considered sustainable
tourism initiatives to be an essential part oftheir travel decisions.

Fostering Responsible Travel:
The expressed desire to impact positively on
visited regions and contribute to theirsustainability signifies a powerful shift towards
responsible tourism, opening avenues forcommunity-engaged and sustainable travel
programs.

The New Age Traveller: Reflecting a
conscious shift towards responsible tourism,
approximately 70% of participants expressed
their desire to contribute positively to theregions they visit, both economically and interms of local sustainability.

Mitigating Overtourism through Education:
The willingness to cooperate in efforts against
overtourism, despite a lack of fullunderstanding of the term, calls forcomprehensive educational strategies aroundsustainable tourism and responsible travel
practices.

Addressing Overtourism: Despite only 50%
of respondents being familiar with the term
"over tourism," there was a collective
willingness to support efforts to alleviate its
effects. Impressively, nearly 90% stated that
their future travel choices would be influenced
by knowledge about sustainable tourism
initiatives.

AJC is committed to leveraging these valuable
insights to foster an enriching and responsible
tourism environment. We recognize the importance of
education in enhancing awareness of sustainable
tourism practices and addressing overtourism, paving
the way for sustainable and inclusive growth in the
tourism sector.

"In addition to the online survey, we also conducted group discussions with Japanese youths, mostly
university students whose major was tourism. What they expressed during the sessions revealed
that many of them do not recognized the dynamic growth of AMS and have outdated impression of
the AMS. This could be due to the pandemic, as they could not visit abroad to witness the world for a
few years. I feel that much more needs to be done to provide accurate information of the AMS to theJapanese youths."
Mizuho KANDA
Assistant Director, Tourism and Exchange
38

The 18 stories of change

Story 12Goal 3: Sustainable and Responsible Tourism

Story 12 "Nurturing Communities and Designing Sustainable Futures":
A Strategic Approach to Enhancing Community-Based Tourism

ASEAN recognizes Community-Based Tourism (CBT)
as a crucial approach to sustainable tourism
development. According to the ASEAN Community
Based Tourism Standard[1], CBT is a communityowned and operated tourism activity managed orcoordinated at the community level. It supports
community well-being by promoting sustainable
livelihoods, protecting socio-cultural traditions, andpreserving natural and cultural heritage resources.
In November 2022, AJC, in partnership with the
Ministry of Information, Culture and Tourism, Lao
PDR, organized a capacity building program focusedon CBT for the CLMV region (Cambodia, Lao PDR,
Myanmar, Viet Nam) in Luang Prabang, Lao PDR.
This workshop aimed to enhance the knowledge andskills of tourism professionals in the CLMV region,
allowing them to effectively contribute to theirrespective destinations and meet the demands andexpectations of local partners and target markets inthe post-pandemic era.

Key results of the workshop
The workshop underscored that CBT should
enhance the community's economy without
exploiting its resources for the sake of tourism.
Participants recognized the significance of thedomestic market for sustainable tourism, especiallyin the wake of the pandemic.

[1]https://www.asean.org/wpcontent/uploads/2012/05/ASEAN-Community-BasedTourism-Standard.pdf

However, AJC noted that challenges remain in thedevelopment of CBT and committed to monitor the
progress by conducting follow-up interviews withthe participants. This initiative aims to gather
insights to enhance the attractiveness andsustainability of tourism in the region.

The participants, including tourism marketing experts
from Thailand, Japan, and ADB, gained and sharedpractical knowledge about CBT development.
Notably, the participants from CLMV learned valuabletips from the Thai expert on CBT productdevelopment, given Thailand's standing as one of the
top ten countries in terms of foreign visitors andinternational tourism revenue.
Further, the participants engaged in a meaningfulexchange of the best practices, challenges, andapproaches adopted by their respective countries inpromoting CBT. This process highlighted theimportance of developing human capital to diversify
CBT products and maximize the utilization of local
uniqueness.

39

The workshop underscored that CBT should not
exploit the community for the sake of tourism; instead,
it should serve as a tool to bolster the community's
economy. While the program was well-received, AJC
acknowledges that there are still hurdles to overcomein the development of CBT. In our quest to enhance
the attractiveness of sustainable tourism in the region,
we would have a plan to monitor the progress of CBTby conducting follow-up interviews with participants,
examining changes implemented post-workshop.

Promote souvenir production: Given that thesouvenir production sector benefits most fromtourism expansion, its promotion should
coincide with community-based tourism
development. This approach can also facilitate
the participation of unskilled laborers fromhouseholds in financial difficulties.
Enhance the participation of households infinancial difficulties in tourism activities:
Given the uneven income distribution resulting
from tourism activities, it is essential to enable
the direct participation of poorer households intourism. This can be facilitated throughinitiatives like providing micro-credit for home
upgrades to accommodate tourists.

Moreover, in light of the lessons learned from theworkshop and insights from related research on theeconomic and inclusiveness impacts of CBT in
Thailand[2], AJC may engage possible advocacy
activities or conducting research on the following
areas for the future:

Strengthen the tourism-agricultural linkage:
While integrating agricultural products into
meals for tourists is one way to enhance thislinkage, other innovative solutions likeincorporating these products into souvenirs canbe explored.

[2] Komsan Suriya, Impact of Community-based Tourism in avillage Economy in Thailand: An analysis with VCGE model.
https://ecomod.net/sites/default/files/documentconference/ecomod2010/1302.pdf

Patience and respect for community
readiness: The development of authentic CBT
products should not be externally imposed.
Each community's readiness and pace should
be respected to ensure that tourism
development aligns with the community's
unique socio-cultural fabric and sustainableobjectives.

Possible future directions
Utilize Digital Technologies: In addition toenhanced digital-based promotion, digitaltechnologies can offer immersive and enrichingexperiences for tourists. For example, virtual
reality (VR) can provide virtual tours of heritage
sites, while augmented reality (AR) can provide
interactive information about local attractions.
Additionally, mobile applications can offer selfguided tours, local recommendations, and easy
booking options, enhancing the convenience fortourists while promoting local businesses.

AJC is committed to empowering communities,
enhancing their economic prospects, and sculpting asustainable future through the strategic developmentof community-based tourism. The ongoing goal is tostrengthen the resilience of ASEAN's tourism industry
and contribute to regional prosperity in a postpandemic world.

"What can tourism bring to our lives? It is an irreplaceable experience in the life of a traveller.
A receiving community/individual gain a sense of pride and a better life. Respect and gratitude exist
between the two parties. I am proud to be part of the tourism industry and to contribute to theprogrammes where as many people as possible can benefit from tourism."
Naoko FUJIKAWA
Senior Programme Manager
40

The 18 stories of change

Goal 3: Sustainable and Responsible Tourism

Story 13 "Uplifting Cambodia's Spa Professionals":
Enhancing Capacities, Achieving Excellence

AJC and the Ministry of Tourism of the Kingdom of
Cambodia have been working together to conduct
training programs in association with the developmentof the ASEAN Common Competency Standards for
Spa Professionals (ACCSSP). As Cambodia serves
as the lead coordinator for this initiative, efforts havebeen made to enhance the skills and knowledge of
spa professionals in the country. This report highlights
the key activities conducted in 2021 and 2022, theachievements attained, and the way forward.

Key results in 2021 and 2022
Upskill Training for Spa Professionals(November - December 2021): In collaboration
with the Ministry of Tourism, AJC organized thefirst upskill training program for spa
professionals in Cambodia. The 20-day
program focused on practical subjects such as
tourism and hospitality in the spa industry,
anatomy, physiology, spa products, andmassage techniques. Local spa experts led thetraining, and two Japanese experts contributed
through online lectures. A total of 43
participants from 14 spa facilities attended theprogram.
Refresher Training Program for Spa andWellness Professionals (December 2022 January 2023): Following the success of thefirst training, AJC and the Ministry of Tourism
conducted a refresher training program in Siem
Reap Province. This 10-day program aimed todeepen the skills and knowledge of spa
professionals in Cambodia. The curriculum
included learnings and practices on hospitality,
spa services, and physiology. Additionally, aJapanese educator delivered a lecture on
Japanese hospitality and spa services. A totalof 53 participants completed the training,
divided into two groups.

41

Story 13

Resonating among the participant feedback was theappreciation for the programme's multifaceted
approach, offering a balanced blend of theoreticalknowledge and practical application.
This comprehensive methodology was not only
informative but instrumental in enabling participants
to translate theory into practice effectively.
An overwhelming 97% of respondents affirmed theprogramme’s success, testifying that the training
significantly enhanced their proficiency in the field of
spa and wellness work.

Participants' voice
Mr. Hor Ratha: From the program, I not only
honed my spa and massage techniques but
also gained practical insights from seasoned
trainers. I've shared these invaluable lessons
on tourism, hospitality, and conflict
management with my team, which hassignificantly improved our business.
Learning about Japan's exemplary hospitality
and spa service from Ms. Otaki was ahighlight. Her expertise has greatly enrichedus, and we eagerly anticipate further learning
opportunities with her.
Mr. Orm Kimsan: Participating in thisprogram was a rewarding experience. It not
only bestowed upon me my first official
certification from the Ministry of Tourism but
also equipped me with actionable insights toenhance my business. The learning I've
gained, I shared with peers, creating a ripple
effect of improvement. I look forward to
future trainings. The professionalism of ourtrainers and their infusion of new skills into
our practice was invaluable, and thecamaraderie built with fellow participants, asource of shared experiences andknowledge.

The way forward
Collaboration and Knowledge
Exchange:The collaboration between AJC,
the Ministry of Tourism, local spa experts, andJapanese educators has been instrumental indelivering comprehensive and quality training
programs. Continuing such collaborations andfostering knowledge exchange opportunities
will further enhance the capacities of spa
professionals in Cambodia.
Sustainability and Expansion: Building on
the achievements of the training programmes,
it is important to establish sustainablemechanisms for continuous skill development.
Expanding the reach of training programs toother regions in Cambodia and exploring
opportunities for international partnerships canfurther elevate the spa industry not only in
Cambodia, but also in other developing
regions in ASEAN.
Promoting the ACCSSP: The implementationof the ASEAN Common Competency
Standards for Spa Professionals (ACCSSP)
promises far-reaching benefits. It's not merely
about motivating those professionals alreadyestablished in the spa sector. The ACCSSP
aims to elevate the quality standards of eachprofessional and the industry as a whole,fostering a culture of excellence andcontinuous improvement. Furthermore, the
ACCSSP contributes to the increased mobilityof certified professionals within the region,
catalysing a vibrant and flexible job market.
Continued support for the development of
ACCSSP is paramount, with Cambodia taking
the lead in coordination. By aligning national
standards with these regional benchmarks,
we can stimulate the growth and internationalrecognition of the ASEAN spa industry.

"Wellness tourism has been drawing increasing attention around the world especially more since
the pandemic. ASEAN has great potentials to excel at offering wellness services and products, andspa professionals are one of the central pillars of the wellness industry. Watching the enthusiasmof the participants to learn and to improve their knowledge and skill at the training, I am optimistic
about their contribution to take part in the development of wellness tourism moving forward. "Reiko NAGAOKA
Programme
Specialist42

43

Goal 4: Fostering Leadership
Exchanges and Empowering Young
People and Women

Creating leaders is our mission, but inspiring change is our passion.

44

The 18 stories of change

Story 14

Goal 4: Fostering Leadership Exchanges and Empowering Young People and Women

Story 14 "Sowing Seeds for a Plastic-Free Ocean": ASEAN-Japan
Cooperation on Marine Plastic Waste

With the disconcerting presence of microplastics
in our shared oceans, and the fact that six ASEAN
countries (Indonesia, Philippines, Malaysia,
Myanmar, Thailand and Viet Nam) were among theworld's highest ocean plastic polluters in 2021,
tackling marine plastic debris has become a priority
for AJC. This is in line with the strategic actions
outlined in the ASEAN Regional Action Plan for
Combating Marine Debris in the ASEAN Member
States 2021−2025 and Japan's cooperation projecton marine plastic debris for the ASEAN Outlook on
the Indo-Pacific (AOIP).

In 2022, the project expanded to include eight
ASEAN countries and Japan, with the "ASEANJapan Eco-School for Marine Plastic Waste
Education" reaching over 10,000 students andinfluencing their behaviour to reduce the volume ofplastics in the ocean. The initiative's success has
been celebrated at events such as the 2nd
ASEAN-Japan Symposium on Marine Plastic
Waste Education, which showcased 11 student-led
initiatives battling plastic waste.

Fellows

Our response to this alarming issue commenced
in 2020, with the crafting of the "Future Leaders’
Declaration on ASEAN-Japan Cooperation forInternational Marine Plastic Waste" by 22 ASEAN
and Japanese students, or "fellows". This paved theway for the launch of the “ASEAN-Hiroshima EcoSchool for Marine Plastic Waste Education,” in
2021, providing online lectures on marine plastic
waste to over 3000 elementary and high school
students in four ASEAN countries and Japan.
45

Lao PDR

Key achievments
Impactful Reach: The program positively
impacted over 12,500 students across ASEAN
countries and Japan in the last three years,
nurturing a new generation of environmental
leaders. AJC's commitment to raising andmentoring young people who could potentiallylead in the environmental field is yielding tangible
results.

Elementary students from Lao joining the 2nd ASEAN-Japan Symposiumon Marine Plastic Waste Education

AJC has been mentoring and co-implementing theabove programs with its cohort of young environmental
leaders, who were originally part of the 22 selected
fellows who drafted the Future Leaders Declaration in
2020. Since then, they have been actively involved in
implementing the Hiroshima-ASEAN Ecoschool and
ASEAN-Japan Ecoschool lectures and advocating
marine plastic waste awareness among the young
students in their own countries. We will continue toraise passionate and innovative young people who will
potentially lead in the environment field in ASEAN andJapan in the future.

Inclusivity and Cultural Sensitivity:
Lectures were conducted in nine languages,
fostering cultural inclusivity. Presenters hailingfrom ASEAN countries and Japan shared specificsocio-cultural practices related to plastic waste
disposal and segregation, enabling students tounderstand their role in plastic waste pollution.
Promoting Positive Behaviours: The program
successfully instilled a sense of responsibility andconsciousness about the plastic problem in theparticipants, motivating them to reduce theirplastic use and disposal. One of participating
students in Malaysia mentioned, “I think the
Ecoschool class will motivate people to be more
responsible and conscious about plastic problem
in ASEAN. I hope this program will have moreinteresting idea to make more people to join inthis programme.” Other student stated, “I love
how Ecoschool try to make efforts to reduce theusage of plastics. Anyway, I think, the formationof this organisation do make people realize how
bad the frequent usage of plastic bags effect theworld.”

Cambodia

Elementary and high school students from Sihanoukville,
Cambodia join the ASEAN-Japan Ecoschool lecture.

46

JapanGlobal Recognition:
The initiative received international media coverage,
boosting awareness of marine plastic waste and theimportance of educational initiatives in addressing thispressing issue. Featured stories in International Media
including;
NHK Global (Japan, 2022) introduced as " Theprogram introduces several topics, such as theactivities of a female student representing Viet Namat the ASEAN-Japan Centre’s “Future Leaders’
Declaration on ASEAN-JAPAN Cooperation forInternational Marine Plastic Waste”.
https://biz.jibtv.com/programs/asean_now_and_the_future_2022/20221109.html
ERIA-Regional Knowledge Centre for Marine
Plastic Debris (Indonesia, 2022) reported as "EcoSchool Program Aims to Raise Youth’s Awarenesson Marine Plastic Waste." https://rkcmpderia.org/eco-school-program-aims-to-raise-youthsawareness-on-marine-plastic-waste

Elementary students in a school in Tokyo actively join the discussion
during the Ecoschool lecture.

MyanmarLao PDR, Lao Tribune (Lao PDR, 2023) reported
as " ASEAN and Japanese Students to Present
Student-Led Initiatives to Reduce Marine Plastics".
https://laotribune.com/asean-and-japanese-studentsto-present-student-led-initiatives-to-reduce-marineplastics/
Borneo Bulletin (Brunei, 2023) reported as " Local
schools participate in virtual ASEAN-Japansymposium". https://borneobulletin.com.bn/localschools-participate-in-virtual-asean-japansymposium/
Media Permata (Brunei, 2023) reported as"Initiatives of the Young Generation in ASEAN-Japan
to Reduce Marine Plastic Waste , was represented
by two students about the use of plastic bottles as
decoration and the reuse of waste to make robots".
https://mediapermata.com.bn/simposium-pupuktabiat-pulihara-laut/

Ngwe Saung High School students conducts a beach clean up activity
in Ngwe Saung, led by AJYELN fellow Dr. Thant Zin Tun.

News Directory (Thailand, 2023) reported as "Young people in ASEAN jointly manage marine
plastic waste".
https://www.newsdirectory3.com/young-people-inasean-jointly-manage-marine-plastic-waste-yanisangamsaard/

47

The way forward
Nurturing Young Environmental Leaders:
Launching the ASEAN-Japan Young
Environmental Leaders Network (AJYELN)
in 2023 will help us raise and mentor youngenvironmental leaders from ASEAN countries
and Japan. Each country fellow will receive aseed fund to implement innovative projects
addressing plastic waste problems in theircommunities.
Supporting Youth-Led Initiatives:
In response to feedback from Ecoschoolparticipants, AJC will recognize and award
innovative student-led campaigns against
plastic pollution through the 'Nurturing Good
Habits for Cleaner Oceans' program in mid2023.
Connecting Communities for Collective
Action: Acknowledging the influence ofstudents on their families, peers, andcommunities, we plan to leverage theseconnections to effect social change related toplastic waste management and circular
economy. Visit the Facebook page, ASEANJapan Young Environmental Leaders Network,and our website, ASEAN-Japan Cooperation
on Marine Plastic Waste, for more information
and updates.

"I envision a future where the youth of ASEAN and Japan unite as eco-champions, armed withknowledge and passion to combat marine plastic pollution. Our mission goes beyond traditional
education; it is a collective responsibility to nurture a generation that understands the gravity ofmarine plastic waste and is inspired to take action. Together, we will create a network ofenvironmentally conscious schools and communities that embrace sustainability, with the ocean as asource of inspiration and protection."
Katrina Navallo, Ph.D.
Programme Manager
48

The 18 stories of change

Story 15

Goal 4: Fostering Leadership Exchanges and Empowering Young People and Women

Story 15 "Fostering Cross-Border Connections": Young
Entrepreneurs Driving Economic and Social Recovery in ASEAN andJapan

Key insights
AJC hosted a vibrant online exchange on
January 26, 2023, titled “Showcasing Successful
Business Models of Young Entrepreneurs in ASEAN
and Japan - Reconnecting People for Recovery.”Innovative Business Models & Expert
Feedback: The 16 dynamic young
entrepreneurs present their innovative
business models, each with a focus on
fostering connections for recovery from the
COVID-19 pandemic. Their presentations
illustrated the immense potential forbusinesses to facilitate reconnection amongcommunities, both within and across borders,followed by insightful feedback from a panel
comprising Prof. Takeru Oe, Ms. Leila Djawas,
and Mr. Abdul Hakim Sahidi, who offered theirunique perspectives in management andentrepreneurship for the further developmentof the business models.

This engaging forum, attended by over 180
participants from ASEAN countries and Japan, served
as a platform for young entrepreneurs to explore andshare business models that could foster connections
at multiple levels—social, economic, cultural, andgeographical—as part of the post-pandemic recovery
efforts.
In the event, 16 young entrepreneurs from across
ASEAN and Japan shared business models thatconnect people socially, economically, culturally, andgeographically with the aim of recovering from the
COVID-19 pandemic.

49

Key insights
Thematic Breakout Sessions: The event featured
six breakout sessions, where participants withsimilar interests came together to discuss criticalentrepreneurial themes such as digitization,
fundraising, marketing, business environments in
CLMV countries, product/service development, andlogistics. These thematic discussions facilitatedactive information exchange and networking
among the attendees.
Positive Reception and Encouraging
Feedback: The event received an overwhelmingly
positive response from the attendees. All
respondents who participated in the post-event
questionnaire rated the event as 'very good' or'good.' Many of them expressed being inspired by
the innovative business models presented and thecompelling stories behind them. The young
entrepreneurs who delivered presentations also
gained valuable insights. Here are a few comments
we received:
Young Entrepreneur A said "I learned firsthandhow challenging it can be to pitch an idea. It
made me acutely aware of the importance ofusing objective data, such as diagrams andfigures, while also conveying enthusiasm andeffectively communicating my business model
to resonate with the audience on an emotional
level."
Young Entrepreneur B mentioned "The COVID19 pandemic made me realize that, moving
forward, it's crucial to not only emphasize
business profitability but also highlight thesocial contributions made through the businessin a well-balanced manner."

Young Entrepreneur C stated as "Initially, I was
primarily focused on creating a business modelthat would succeed in my own country.
However, I now recognize the need to thinkbeyond that and develop a model that can be
implemented in other regions of ASEAN as
well."
These feedback showcase the valuable learnings andthe impact the event had on the young entrepreneurs,
reinforcing the success of the event in empowering andinspiring them.

This event formed an integral part of AJC's mid-term
strategic plan "AJC 5.0" and aimed to raiseawareness among ASEAN and Japanese youth
about the importance of their mutual collaboration.
The insightful presentations, expert feedback, anddynamic breakout sessions at this event showcased
the potential for innovative business models to drive
post-pandemic recovery and the immense benefits ofcross-border connections.
Inspired by the success of this event, AJC iscommitted to continuing its mission of empowering
the next generation of ASEAN and Japanese
economic leaders. By providing a platform for idea
exchange and human resource development, theAJC aims to nurture an entrepreneurial ecosystemthat can effectively address current challenges, drive
post-pandemic recovery, and foster future economic
resilience.

"While ASEAN is full of diversity, the competitiveness of companies in the global market is still in thedevelopment stage and needs to be improved. Young entrepreneurs are the future bearers of thedeveloping ASEAN economy. Encouraging their cross-border exchanges, stimulating theirentrepreneurial mindset, and spurring their creativity will give rise to new business awareness and new
networks, which in turn will invigorate entrepreneurship and business activities between ASEAN andJapan."
Kazuhiko AMAGAI
Programme Specialist
50

The 18 stories of change

Story 16

Goal 4: Fostering Leadership Exchanges and Empowering Young People and Women

Story 16 "Connecting Hearts and Minds": ASEAN Student Exchange
Programme Ignites Japanese Students' Imagination
This report highlights selected key achievements,
feedback results, and children's voices from the ASEAN
Student Exchange Programme conducted in FY2022.
The program involved the participation of 1,807 students
from 66 classes across 12 primary schools and one
kindergarten in 12 cities. A total of 59 ASEAN university
or graduate students or alumni actively contributed to theprogramme.

The ASEAN Student Exchange Programme, known as
ASEAN Introductory Classes, has successfully been
implemented as part of various AJC's exchange
programs across different cities in Japan.
The primary goal of this initiative is to raise awarenessamong children about the significance of ASEANJapan relations and foster a genuine interest in
ASEAN countries. Through interactive and hands-on
activities facilitated by university or graduate students
from ASEAN currently studying in Japan, primaryschool students have the opportunity to learn about
ASEAN countries' culture, traditions, language, andpressing issues.

Case 1
At Kawagoe City Ōtsuka Elementary
School, 75 Students from 5th grade regularclasses and special needs classes (3 classes
in total) engaged in enriching activities
facilitated by ASEAN students from Cambodia,
Indonesia, and Malaysia. The sessions
included presentations on their respective
countries, Japan's perception, andconnections with Japan for regular classstudents. Additionally, interactive lessons andhands-on experiences on topics such as food,clothing, and animals provided an engaging
learning environment for students for special
needs classes.

51

Case 2At Kishiwada CityYamanao Elementary
School, all students of 183 children
participated in the programme. A
comprehensive programme was tailored todifferent grade levels, allowing students to
explore various aspects of foreign countries.
Themes covered traditional costumes, food,games, buildings, differences in school life,
occupations, global warming, agriculture, andmarine plastic waste. Through these
immersive experiences, students gained adeeper understanding of their own
surroundings and established connections withJapan. In addition to presentations, thestudents had hands-on experiences such as
making kites (tako) that Thai elementary
school students play with during break timeand using Vietnamese toys to get a taste ofwhat it's like to be a local student.
The school’s feedback was very positive, andit said that the students gained confidence
through actively interacting with students fromASEAN, and it expressed its appreciation
because the programmed was planned basedon our requests, resulting in a fruitful learning
experience that went beyond a one-time class.

Case 3
At Chiba City Makuharihigashi Elementary
School, around 100 fourth grade students
participated in a virtual program focusing onwater, which aligned with their regularcurriculum. ASEAN alumni from Cambodia,
Lao PDR, and Singapore participated throughon-line and conducted a comparative lessonon water situations in ASEAN countries,
highlighting differences in water supply,
storage tanks, well water usage, mineral watertypes, sewage treatment, and water fees. The
students were intrigued by these comparisons,expressing a desire to learn more about waterrelated topics in Japan.

52

The ASEAN Student Exchange Programme has
successfully accomplished its primary objective of
raising awareness of ASEAN-Japan relations among
Japanese children. This initiative has played a vitalrole in promoting cultural exchange, understanding,and mutual respect between Japan and ASEAN
countries. The interactive activities have sparked
curiosity, broadened horizons, and nurtured a senseof global citizenship among students.

The way foward
To further enhance and expand the ASEAN
Student Exchange Programme, AJC is
determined to pursue ambitious development
goals. The aim is to transcend the current level ofexchange and foster a relationship of continuous
cooperation for sustainable green growth. To
achieve this, AJC recognizes the importance of
securing broader support and engagement fromvarious stakeholders, including parents, teachers,
school principals, board of education members,
local government heads, and the Ministry of
Education, Culture, Sports, Science, andTechnology.
By actively involving and seeking buy-in from all
relevant parties, AJC will adopt a comprehensive
approach to promote the value and impact of theexchange programme among young people inboth ASEAN and Japan. This inclusive effort will
pave the way for sustained cooperation, deeper
cultural understanding, and enduring friendships
between Japan and ASEAN countries.

"People-to-people exchanges is the key to realizing ASEAN-Japan heart-to-heart relationship. ASEAN
Introductory Classes have provided numerous valuable opportunities and contributed to fostering senseof affinity and building friendship between ASEAN and Japan. I believe this project will bring about abetter and stronger ties between the two regions for future prosperity for both in many ways."
Mitsuo WATANABE
Programme Coordinator

53

Goal 5: Advocacy, Communication,
Social Mobilisation, and Partnershipfor Change

Turning words into action, we are the voice of change.

54

The 18 stories of change

Story 17

Goal 5: Advocacy, Communication, Social Mobilisation and Partnership

Story 17 "Pioneering a New Era of ASEAN-Japan Engagement":
ASEANPEDIA Project

In an increasingly interconnected world, fostering
understanding among neighbouring nations has
become increasingly important. Recognizing thisneed, the ASEANPEDIA project was launched as a
distinctive initiative by AJC to offer extensive andeasily accessible information about ASEAN and its
Member States. Through its pamphlet and website,
the project primarily targets young Japaneseindividuals, aiming to provide them with acomprehensive resource.
The ASEANPEDIA project is designed to serve asa valuable resource for a diverse range of users,
including individuals, businesses, researchers, andanyone seeking to expand their knowledge about
ASEAN and its member countries. By utilizing thewealth of information provided by ASEANPEDIA,
users can gain insights into various aspects of
ASEAN, such as its economy, culture, tourism,
trade, investment, and business opportunities.
The project not only offers an in-depth
understanding of the ASEAN Member States but
also encourages cross-cultural exchange andcollaboration between ASEAN and Japan.
Through the dissemination of accurate and up-todate information, the ASEANPEDIA project plays avital role in strengthening the ties between theseregions.

55

Key achievements
Successfully revamped ASEANPEDIA
website in the fiscal year 2021:
An all-encompassing platform crafted by
AJC, to provide comprehensive information
about ASEAN and its Member States toyoung Japanese people. The project has
been fostering wide-ranging appreciation
and understanding of the charms of theASEAN Member States and importance toJapan among all generations since 2018.
The new website offers easier accessibility
on smartphones and is designed for a moreinteractive experience. The website featuresunique content including short introductory
movies to the ASEAN Member States,
introductions to ASEAN's diverse people andtheir traditional clothing, and an animation
showcasing the connections between thedaily life of Japanese students and ASEAN
countries.
Celebrated a significant increase in thewebsite's popularity, with a 65% rise invisitor numbers and a 92% increase in pageviews annually from fiscal year 2021 to fiscal
year 2022.

Issued a renewed ASEANPEDIA pamphlet
in 2022: The renewed ASEANPEDIA
pamphlet, issued in 2022, not only features a
fresh design to attract our target readership(junior high to university students) but alsooffers unique, interactive content such as pixel
puzzles and crossword puzzles.
Successfully distributed more than 76,000
copies of the ASEANPEDIA pamphlet
across Japan since its first issuance in 2014,
predominantly reaching out to student
communities.

Moving forward, AJIC is not only committed to
distributing an additional 10,000 pamphlets in 2023 but
also to continuously improving ASEANPEDIA's content
and interactivity. In line with the celebration of the 50th
Year of ASEAN-Japan Friendship and Cooperation, we
will seek new ways to deepen the understanding andappreciation of ASEAN in Japan, ensuring our platformremains an engaging and educational resource for all.

"How can I get young Japanese people to pay attention to Japan's important partner, ASEAN and its
Member States? How can I convey to them the interesting, diverse, beautiful, and advanced nature of theASEAN Member States? These questions or motivation drive me to run the ASEANPEDIA project. As thecelebration of the 50th Year of ASEAN-Japan Friendship and Cooperation began in 2023, I will takeadvantage of this momentum to raise awareness of ASEAN in Japan utilizing ASEANPEDIA, one of thegreatest assets of the AJC succeeded from the predecessors."

Tomoko MIYAUCHI
Lead Public Communication Officer

56

The 18 stories of change

Story 18

Goal 5: Advocacy, Communication, Social Mobilisation and Partnership

Story 18 "Unity for Prosperity": ASEAN-Japan's Special IGA Dialogue
for Actions on the Indo-Pacific

On December 19, 2022, AJC played host to alandmark event: the Special IGA (IndustryGovernment-Academic) Dialogue for Actions. The
forum's central theme was "Acceleration of ASEAN
Outlook on the Indo-Pacific (AOIP) Mainstreamingfor Peace, Stability and Prosperity in the IndoPacific".
At the 34th ASEAN Summit in 2019, ASEAN
Leaders adopted AOIP to “guide cooperation”,“promote an enabling environment for peace,stability and prosperity,” “enhance ASEAN’s
Community building process,” and further
strengthen implementation of “ASEAN priority
areas of cooperation, including maritime
cooperation, connectivity, the Sustainable
Development Goals (SDGs), and economic andother possible areas of cooperation. Japan has
expressed its full support for the AOIP. Since thenAJC recognizes that enhancing cooperation on
AOIP toward the 50th Year of ASEAN-Japan
Friendship and Cooperation in 2023 is very
important; thus, the AJC organized a special
Dialogue Forum by inviting senior government
officials and experts from Japan and Indonesia, an
incumbent chair of ASEAN. Ambassador Swajaya,
special advisor to the Minister for Foreign Affairs ofIndonesia, emphasized that Indonesia, as a chairof ASEAN, has translated the AOIP into a concrete
plan of actions to further promoting constructive
dialogues and cooperation with a spirit of mutual
respects in the face of challenging situations.

57

The event also facilitated follow-up dialogues
between the experts and representatives ofJapanese Generation Z. They were three young
individuals in their twenties aspiring to startbusinesses in ASEAN countries and Japan, and ahigh school student.
Their perspective on the ASEAN region offered adifferent angle from those of the experts, giving theimpression that they are indeed neighbours to growtogether with. For instance, Ms. Karen, a highschool student who has decided to advance to auniversity in Malaysia next year, shared her insights
drawn from her past experience living in Thailand
with her family. She spoke of the allure of theASEAN region's diverse traditions and cultures,
particularly the unique food culture that has beencultivated. Moreover, she expressed that young
individuals of her age find the rapid development of
the ASEAN, such as their adept use of IT
technology, very appealing. Karen herself voiced
her aspiration to serve as a bridge to peace andprosperity in the dynamic ASEAN region throughher education.

Zen-G panelists

Key Results
Comprehensive Perspectives on AOIP
Mainstreaming: Participants were privileged tohear from esteemed speakers from a broadspectrum including government, academia,
industry, and civil society. The diverse insights
presented a well-rounded view on accelerating
AOIP implementation and mainstreaming.
Identified Priority Actions for Strategic
Alignment: Several priority actions were
underscored during the discussions, including thenecessity for strong partnerships on inclusive
digital transformation, sustainable and green
growth, and strengthening connectivity. Further
emphasis was placed on human resource
development and fostering people-to-people
linkages to enhance ASEAN-Japan strategicalignment.
Involvement of Generation Z in Dialogue:
Notably, the dialogue also saw participation fromJapanese Generation Z representatives who
have made significant societal contributions andspearheaded organizations that promote various
causes including gender equality andenvironmental issues. The dialogue underscoredthe importance of incorporating the perspectivesof young people in the mainstreaming of AOIP tocreate a peaceful, prosperous, and sustainable
Indo-Pacific region.
Way Forward: The cooperative efforts between
ASEAN and Japan will undeniably lead to a morecompetitive, resilient, connected, and sustainable
ASEAN, well-equipped to tackle the challenges ofthe present and the future. It's crucial to sustain
this comprehensive dialogue, involving not only
government-to-government communications but
also including other stakeholders – the industry,
civil society, academia, the grassroots and young
people.

"AJC is making great contributions by organizing the ASEAN Outlook on the Indo-Pacific, (AOIP) forum,
which is one of the major topics in the region today. The forum has made the most out of this opportunity
to commemorate the Golden Jubilee of long-standing ASEAN-Japan relationship. The forum involved thecivil society, academia, industries, high-rank government officials as well as representatives of Japanese
Generation Z who contribute to the society, to exchange their diverse views and ideas, so that, it was great
momentum to further strengthen ASEAN - Japan cooperation towards acceleration of AOIP
Mainstreaming.
Retno Supeni
Assistant Director, Strategic Country Support58

Embracing Challenges, Inspiring Progress
In the face of unforeseen circumstances, widening
geopolitical risks, and volatile currency exchange
and inflation, our commitment to accountability
remains unwavering.

The essence of our journey lies in the collective
vision of progress.
We remain committed to fostering the ASEANJapan partnership, empowering and serving forthe people of the ASEAN Member States andJapan through impactful initiatives. With deep
appreciation to our member states for theirgenerosity, trust, and guidance bestowed uponus, we forge ahead into a future filled withpossibilities.

Through prudent financial management and acommitment to transparency, we optimized theutilization of resources, enabling us to allocate
more to our core activities. Despite unavoidable
pandemic disruptions, we embraced innovation,
replacing travel with online activities to ensure
every contribution spent made a meaningful impact.

Together, we write the story of progress.
We proudly share that 91% of the FY2021 budget
and 89% of the FY2022 budget were thoughtfully
utilized. Administrative costs were streamlined,
empowering us to allocate funds efficiently. In
parallel, we have diligently advanced results-basedplanning and budgeting, refining desired outcomes
and aligning the Center's resources with the AJC
5.0, leveraging newly developed costing tools.
Additionally, we have introduced a system to tag
expenditures, affording us a visual representation ofbudget allocation. This would enable us to focus
and allocate resources more effectively to priority
areas of the ASEAN-Japan partnership.

Junko NUKIYAMAHead of General Affairs

59

A Focus on Result-Based Practices
AJC has, from 2022,
intensified its promotion of
Result-BasedManagement to ensure
more efficient and effective
budget execution. This
includes the formulation of'AJC 5.0 2022-2025', theorganization's first-ever
mid-term strategic plan inits 40-year history. It also
encompasses the adoptionof Result-Based Budgeting
and Planning, including
the Theory of Change,
staff training, and theestablishment of individual
and team accountability
frameworks.

Strategic Budgeting for Four Core Priorities
AJC has identified MSMEs, women,
ASEAN Outlook on the Indo-Pacific(AOIP), and the ASEAN Comprehensive
Recovery Framework (ACRF) as themost critical cross-cutting issues for2021-2023, and has been actively
promoting engagement in these areas.

To achieve further results, and monitor
progress from a budget execution
perspective, tags were applied to fourpriority areas for each program's budget
execution starting in 2022. Below is thesituation as of 2022, with plans for further
improvements in the future.

60

FY 2021 Final Progress Report

FY 2022 Final Progress Report

Financial Statement

61

List of ASEAN National Activites for FY 2021

List of ASEAN National Activites for FY 2022

"ASEAN National Activities", also known as "AJC National Activities",
is a specialized programme for all ASEAN Member States, designed to implement
priority projects and activities that are strategic importance in each country.

62

Our values
We do the right thing for the best interest of people in
ASEAN and Japan.
We create a positive, collaborative, and inclusive
culture that fosters equal, heart-to-heart, open, andmeaningful relationships among ASEAN and Japan.
We all become a decent person who has the skill,good judgement, and polite behaviour. We work andbehave in such a way that others think of us ascompetent, reliable, and respectful.
We listen to, consider, and understand others’
feelings, thoughts, perspectives, and circumstances
whether we agree with others or not.
We work and behave with compassion, and we pay
attention to the needs of others.

Published by the ASEAN-Japan Centre Secretariat in August 2023
Shin-Onarimon Bldg, 6-17-19, Shimbashi,
Minato-Ku, Tokyo 105-0004, Japan
www.asean.or.jp
toiawase_ga@asean.or.jp