Asean governments are eager to improve their investment policies and deregulate to attract foreign investors amid keen competition in the region.
In a seminar entitled "AEC Diversity: The Perspective from Our Neighbours", speakers from the region agreed on the potential of the Asean market but said there needed to be clearer goals.
Ros Sao, a commercial counsellor from the Cambodian embassy, said foreign investors can hold a 100% stake in all sectors except real estate, although they can partner or set up a joint venture with a local firm for a lease of 70-90 years.
Cambodia is in the process of improving its investment law by cutting corporate income tax to 20% and adding regulations to reduce corruption and promote transparency of government administration.
Ade Veronica Christine, the third secretary from the Indonesian embassy, said Indonesia set six areas for industrial development: agriculture, fisheries, food, tourism, energy and mining.
She said the government needs to improve investment law and infrastructure to facilitate foreign investors while protecting the environment.
Last month, the Indonesian government announced it will cap foreign shareholding in mining ventures at 51%, down from 100%, in 10 years to preserve natural resources.
Moe Myint Kyaw, president of the Myanmar Fishery Products Processors and Exporters Association, said Myanmar is also improving its investment law, regulations and finance sector in order to stabilise its currency and invest in infrastructure such as power plants.
Myanmar has already liberalised investment in the petrochemical industry, while the government just allowed car imports.
Myanmar aims to protect its forest area so only 15% of land will be used for commercial purposes.
Khanlasy Keobounphanh, the Lao embassy's economic and commercial counsellor, said Laos must improve its laws to conform to world standards, but domestic investors are worried foreign investment may affect domestic entrepreneurs and the environment.
Banthoon Lamsam, the chief executive of Kasikornbank, said large local companies are strong enough to expand internally and regionally. But most small and medium-sized enterprises need to improve before they can compete abroad.
The government needs to support SME competitiveness and improve education, the law and transportation ahead of the AEC in 2015, he said.
