Leading companies both in ASEAN and outside the region have eyed the grouping as a second mother base for their investment next to their homeland, thanks to the area's strength not only in manufacturing but also service and investment.

In an ASEAN Business Forum 2009 seminar titled "Doing Business in ASEAN", Toyota Motor Asia Pacific Engineering and Manufacturing president Mitsuhiro Sonoda said his company considered ASEAN as its second mother country and an export base for alternative-energy vehicles.

"The region contributes more in developing ASEAN business and supports affiliated companies in other regions to ensure that Southeast Asia can be a great base for production, engineering and human-resources management to serve business growth," said Sonoda.

He described ASEAN as a strong export base for alternative-energy vehicles and a new energy-supply base rich in resources and technology development. However, some barriers have hampered the region serving as a second investment centre for Toyota, including individual national schemes to promote the auto industry.

ASEAN member states on their own may have limitations on the availability of capable second- and third-tier suppliers. In order to achieve real localisation, they must further develop suppliers' capabilities and set up a regional alternative-fuel policy, said Sonoda.

Anon Sirisaengtaksin, chief executive officer of PTT Exploration and Production, said ASEAN would be a new emerging destination as the company's production base for serving business growth in the region.

"As car factories or other service industries have expanded their business in the region, the firm must also comply with other industries in order to serve those businesses' growth," he said.

But the gap between the development of each nation and the development of their individuals could cause difficulties for ASEAN integration, he added.

Aloke Lohia, chairman of the Executive Committee of Indorama Polymers, said ASEAN economic integration would make the region more attractive for foreign direct investment (FDI).

"Business sectors are looking forward to integration as it will create greater opportunity for sustainable business growth," Lohia said.

He said that to accomplish the goal of an ASEAN Economic Community (AEC), the region must have a mindset focused more on innovation and have strategic policies to draw more FDI into the region.

For instance, the region must have more stable exchange rates, he added.

William E Heinecke, chairman and chief executive officer of Minor International, said the region has high potential to serve as service and tourism business bases.

As the region has a combined population of over 580 million, is rich in natural resources and has high capability in terms of service business development, it is very attractive as a service business base.

But Heinecke said the lack of cooperation between agencies and the plethora of red tape had hindered movement toward the AEC, and that could affect ASEAN's FDI attractiveness.

Warrick A Cleine, CEO of KPMG in Vietnam and Cambodia, said ASEAN businesses must better work together to ensure growth after liberalisation.

However, he added, his company was not yet able to look beyond the AEC in 2015 in terms of post-integration planning, as there were still barriers to achieving the target.

He cited the differences in politics, capacity and public policies as key challenges for ASEAN governments in order to achieve the AEC goal.