"A community united with a highly competitive single market and production." (Solstad, 2013) This statement is the vision of every ASEAN leaders in the Southeast Asian Region. They envision a region of equitable and a fully integrated economy that can compete in the global arena. The ASEAN is the most elaborate and longstanding arrangement promoting economic integration in Asia yet it is far less institutionalized than the European Union (EU). As a response to the increasing global competition, the ASEAN leaders sought to enhance their economies by the formation of an agreement. Thus, with its comprehensive, balanced, and improved features they formed the ASEAN Comprehensive Investment Agreement (ACIA). ACIA is an ASEAN's instrument to create a free and open investment regime/environment in the context of an integrated economic community and ASEAN's response to increase global competition and enhance the attractiveness of ASEAN as a single investment destination.
The ASEAN Comprehensive Investment Agreement, or simply known as ACIA, aims to create a free and an open investment environment through the consolidation and expansion of existing agreements between the ASEAN member countries (ACIA Business Guide, 2013). This was reflected in the signing in 1987 of the ASEAN Agreement for the Promotion and Protection of Investments (AAPPI or IGA) that desires to create a favorable conditions for investments, and in 1998 of the Framework Agreement on the ASEAN Investment Area (AIA) envisions a region with a free flow of investment, which established basic principles between the ASEAN States regarding the liberalization, promotion and protection of investment within ASEAN. Recalling the decisions of the 39th ASEAN Economic Ministers ("AEM"), A Meeting held in Makati City, Philippines on 23 August 2007 revised the Framework Agreement on the ASEAN Investment Area, as amended, into a new comprehensive investment agreement which is forward-looking (ACIA Business and Investor, 2013).
