Detail from portrait by the Korean American photographer CYJO, part of a Smithsonian museum series on Asian American Portraits of Encounter. Photo: © CYJO via National Portrait Gallery.

May is Asian American and Pacific Islander Heritage Month, a celebration of the history, contributions, and culture of Americans from Asia and the Pacific Islands. As we reported earlier, Asian Americans and Pacific Islanders make up 5.6% of the American population – 17.3 million – and grew by 46% in the last ten years, faster than any other race group, according to the 2010 Census.

This year’s Presidential Proclamation recalls the many contributions of Asian American and Pacific Islanders (AAPIs) that have made America what it is today, but also addresses the many difficulties that this population has faced historically and today – motivation for the White House Initiative on Asian Americans and Pacific Islanders, which seeks to expand access to Federal programs where AAPIs are currently underserved. President Barack Obama’s Proclamation also recognizes two significant anniversaries: the 70^th anniversary of the Executive Order that authorized the internment of Japanese-Americans during World War II – a sad chapter of US history – and the 100th anniversary of the first Japanese cherry trees planted in Washington, DC – a happier symbol of enduring friendship between Japan and the United States. As the Proclamation states:

“Asian American and Pacific Islander Heritage Month offers us an opportunity to celebrate the vast contributions Asian Americans and Pacific Islanders have made to our Nation, reflect on the challenges still faced by AAPI communities, and recommit to making the American dream a reality for all.”

Official recognition of Asian Pacific Americans started as a congressional bill in 1977 by Representatives Frank Horton (NY) and Norman Mineta (CA), and one month later by Senators Daniel Inouye (HI) and Spark Matsunaga (HI). The bills passed with overwhelming support and in 1978 Jimmy Carter signed the Joint Resolution into law, proclaiming the week of May 4-11 Asian/Pacific American Heritage Week. This week of May was chosen for two significant historical dates: the first Japanese immigrated to the United States on May 7, 1843, and the transcontinental railroad, built largely by Chinese immigrants, was completed on May 10, 1869. In 1990, President George H.W. Bush signed legislation that extended the week-long celebration into a month-long celebration, but it was not until 1992 that the Heritage Month was institutionalized into an annual, recurring celebration (until then, the legislation had to be renewed every year). Each year, the president issues a Proclamation to recognize the month.

Jimmy Carter’s 1979 Proclamation of Asian/Pacific American Heritage Week. Source: APIAHeritageSF.org.

Numerous festivities are planned for this month, including a sampling here:

• Chicago’s Public Library system will highlight AAPI traditions, history, and contributions to the music industry.
• Los Angeles has a month-long calendar of cultural events including the Los Angeles Asian Pacific Film Festival and a poster contest for students to submit their interpretations on the LA festival’s theme of “Breaking the Mold.”
• The Smithsonian Institution will host numerous events at its museums, including a family day of music, dance, arts-and-crafts, video interviews, and gallery tours in Washington, DC.
• San Francisco will host several events including an exhibit at the Asian Art Museum entitled “Growing Up Asian.”
• Pittsburgh will host the Silk Screen Asian American Film Festival.
• Washington’s State Commission on Asian Pacific American Affairs has published a series of interviews with state employees of Asian American and Pacific Islander descent.
• New York City will host its 33rd annual heritage festival, which its organizers, the Coalition of Asian Pacific Americans, claim is “the longest running and largest event celebrating pan-Asian heritage nationwide.” Macy’s department stores, a sponsor of the festival, will showcase Asian Pacific cuisine, dance, and vocal performances in nine stores across the country.

For more information on Heritage Month, see the Library of Congress’s Asian-Pacific American Heritage Month website.

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Twenty-eight students from Vietnam receive MBAs from Griggs University in Silver Spring, Maryland. Photo by Rajmund Dabrowski/ANN via Flickr (Creative Commons BY-NC-ND 2.0).

More than 46,000 students from Southeast Asia came to the United States for the academic year 2010-2011, comprising 6 percent of all foreign students in the United States, according to the Institute of International Education (IIE). However, growth has been slow, with only a 10 percent increase over the last decade in the number of ASEAN students in the United States. Many countries, in fact, have experienced significant decreases in the number of students they send to the US, but the exponential growth from Vietnam has buoyed the overall total. Foreign students from ASEAN and their dependents contributed about $1.3 billion to the US economy last year, an average of about $28,000 per student, based on Asia Matters for America estimates of data from the National Association of International Educators.

Taken as a group, ASEAN is the fourth largest origin of foreign students in the United States, ahead of Canada (27,500 students) and behind South Korea (73,500 students). Among the individual countries of ASEAN, Vietnam ranks eighth among all places of origin, Thailand is fifteenth, Indonesia nineteenth, and Malaysia twentieth. The United States continues to reach out to ASEAN students interested in studying in the US via the Department of State sponsored initiative EducationUSA, which promotes US higher educational institutions overseas and has an office in every ASEAN country providing free information and resources to prospective students.

Top Six ASEAN Country Students in the United States. Data Source: www.iie.org

Growth is particularly strong among Vietnamese students, which have increased nearly six-fold over ten years, from 2,531 in 2001-02 to 14,888 in 2010-11. One-third of all ASEAN students studying in the United States last year were from Vietnam, and they brought the US economy about $400 million. Texas, California, and Washington are the largest recipients, accounting for nearly half of all Vietnamese students in the United States. To capitalize on the trend, universities are increasingly catering to the needs of this cohort. Kansas State University has increased its admission programs in Vietnam, the University of Missouri Graduate School has an admission web page partly translated in Vietnamese, and a report by the Maine International Trade Center outlines ways to attract students from Vietnam amidst stiff competition from other countries.

Competition from other countries is one reason that the United States has attracted fewer students from several countries in Southeast Asia over the last decade. The US world share of international students has declined from 28 percent to 20 percent in the last decade as other countries – such as Australia, China, Singapore, and the United Kingdom – have stepped up their efforts to internationalize, according to the IIE’s Project Atlas report. Many countries have poured resources into sophisticated marketing strategies to attract international students, such as the United Kingdom’s “Education UK” brand, something the United States has not done at a national level. Likewise, the domestic education systems of Asian countries have improved dramatically, allowing students to get a better education in their home country or nearby countries. Through aggressive government programs, Singapore hopes to attract 150,000 foreign students by 2015 and Malaysia aims for 120,000. China and Japan have even larger goals, hoping by 2020 to host 500,000 and 300,000 foreign students, respectively. All this means heightened competition for US education institutions.

The US visa process has also slowed growth of international students in the United States, as tightened procedures and increased bureaucratic hassles in the years after the September 11, 2001, terrorist attacks, have made it difficult for some prospective students to obtain US entry documents. Some of these restrictions have since been lifted but the damage may already be done to America’s reputation as a premier destination for international studies. Some European countries have also made it easier for foreign students to stay and start a career or become a citizen in their host country after graduation. By contrast, the United States has no direct process for foreign students to become permanent immigrants, other than sponsorship through a US employer.

The number of Thai students has declined by 29 percent over this time period, with 8,200 in 2010-11 compared with 11,600 in 2000-01. Students from Thailand brought the US economy an estimated $236 million last year. The majority of Thai students (52 percent) were enrolled in graduate programs during 2010-2011, unlike students from other countries who are primarily undergraduate students. The Academy of Art University in San Francisco hosts 255 Thai students, more than any other educational institution in the United States. Demand is so great that this institution hosts open houses and alumni events in Bangkok.

The decline in Indonesian students over the past ten years is even more precipitous, with a drop of 40 percent from 11,600 a decade ago to 6,900 last year. US President Barack Obama and Indonesian President Susilol Yudhoyono announced in June 2010 a joint commitment to strengthen educational ties between the United States and Indonesia. In October 2011, the inaugural US-Indonesian Higher Educational Summit was hosted in Washington, D.C., and both presidents reiterated their pledge to further develop bilateral educational exchanges in their joint statement at the East Asia Summit in November 2011. Students from Indonesia added an estimated $197 million to the US economy in 2010-11.

Malaysian students over the past ten years have fallen by 9 percent, from 7,395 to 6,735, whereas Singaporean students have remained relatively constant in the 4,000 range. More Burmese students—almost 800—studied in the United States that the cumulative total from Cambodia, Brunei, and Laos during 2010-11. Burma/Myanmar, a former British colony with high numbers of English speakers, is one reason why Burmese students do well in US educational institutions, reports USA Today. To attract more Cambodian students, the United States launched it first U.S.-Cambodia Education Fair in Phnom Penh in April 2012.

The leading fields of study for foreign students in the United States are business, engineering, and mathematics.

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Asian Americans at a Naturalization Ceremony in Los Angeles Sept, 2011. Photo: Nalea J. Ko/ Pacific Citizen

People of Asian descent grew faster than any race group in the United States, with Filipinos and Vietnamese in the top four ethnic groups, according to a new report released by the US Census Bureau. A total of 17.3 million people identified themselves as either Asian alone (14.7 million) or Asian-in-combination (2.6 million) in the 2010 census, out of a total population of 308.7 million.

In total, 5.6 percent of the US population identified as Asian or Asian-in-combination, an increase of 46 percent over the last decade. The Asian and Asian American population increased by at least 30 percent in every US state except Hawai’i, which in 2010 had a population that was 57 percent from Asian descent, the highest in the country.

Filipinos were the largest Southeast Asian group, at 3.4 million, an increase of 44 percent since 2000, and second only to Chinese among all Asian groups. Vietnamese came in fourth with 1.7 million people, an increase of 42 percent over 2000, and ahead of Korean and Japanese ethnic groups. And data from the Department of Homeland Security shows that in the last decade, people born in the Philippines were the third largest group that became naturalized US citizens, behind Mexico and India; Vietnam ranked fifth. Likewise, people born in the Philippines ranked fourth in the number of recipients of Legal Permanent Residence cards or “Green Cards”, behind Mexico, China, and India, with Vietnam seventh.

Asian as Percentage of US County Population 2010 Image: US Census Bureau

Today, Filipinos are the largest Asian group in ten states: Alaska, Arizona, California, Hawai’i, Idaho, Montana, Nevada, New Mexico, Washington, and Wyoming. Filipino American author Thelma Buchholt, in her book Filipinos in Alaska: 1788-1958, writes that the first Filipino, a merchant seaman, arrived in Alaska in 1788, almost a century before the territory was acquired from Russia. Today, the thriving Filipino community in Alaska is evident across the state’s economy including “military bases, canneries, oil refineries, hospitals, retail stores, and government and nonprofit offices,” according to New America Media.  In recent Congressional testimony on the US-Philippines relationship, US Assistant Secretary of State Kurt Campbell stated that “Our relationship is enriched by the presence in the United States of over four million Filipinos and Filipino Americans and in the Philippines by over 150,000 Americans.”

The Vietnamese population is the largest Asian group in five states: Kansas, Louisiana, Mississippi, Nebraska, and Oklahoma. Immigration from Vietnam peaked during the Vietnam War, with many Vietnamese attracted to the southern Gulf States of Louisiana and Mississippi. One central attraction to these southern states was the opportunity to continue their livelihood of fishing and boat building in climates similar to those that they left behind, according to the websites Louisiana’s Living Traditions and Mississippi History Now.

Population Growth for Select Southeast Asian Groups 2000-2010. Data Source: US Census Bureau

Individuals identifying themselves as Burmese increased by 499 percent in the last decade, up from 16,720 in 2000 to 100,200 in 2010, the largest increase for any grouping from Southeast Asia. Singaporeans represented the next highest increase, up from 2,400 to 5,300, followed by Thai (from 150,000 to 238,000) and Indonesian (from 63,000 to 95,000).

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The United States exported almost $9.6 billion of agricultural products to ASEAN in 2011. Photo: The Associated Press

ASEAN countries have long been an important international market for US agricultural exports. The United States, in 2011, exported almost $9.6 billion of agricultural products to ASEAN, making it the sixth-largest export destination for US farmers, ranchers, and agribusinesses—behind Japan ($14 billion) and just behind the European Union ($9.6 billion), but well ahead of South Korea ($7 billion). Moreover, the value of agricultural trade between the United States and ASEAN almost doubled between 2007 and 2011, with the top four ASEAN markets in 2011 for the United States being Indonesia ($2.8 billion), the Philippines ($2.1 billion), Vietnam ($1.7 billion), and Thailand ($1.3 billion). With a population of 614 million and strong economic growth, it is expected that ASEAN will continue to be an important market for US agricultural products. However, the United States is likely to face increasing competition, particularly from China, Australia, and New Zealand, all of which have free trade agreements (FTAs) with ASEAN.

Agricultural exports to ASEAN markets made up 7 percent of all US agricultural exports in 2011, compared with 5.5 percent in 2007. Strong economic growth in these countries has raised per capita income levels, and as a result changed food consumption patterns. According to the International Monetary Fund, the aggregate gross domestic product for the region has more than tripled since 2001 and each member countries’ per capita income more than doubled over the same time period. As a result, ASEAN citizens are now consuming more higher-value food products, such as animal products, fruits, vegetables, and packaged foods. This in turn has created a larger and more diverse marketplace for US agricultural industries.

ASEAN has always been a strong customer for US bulk commodities, such as wheat, soybeans, and cotton; exports of these commodities have increased from $1.4 billion to $4.5 billion between 2001 and 2011. Furthermore, imports of US cotton facilitate the region’s textile and apparel industries. It is projected that imports of commodities used primarily for domestic milling and processing, such as wheat and soybeans, will remain strong with the growth of the middle class.

Exports of higher-value US agricultural goods are also rising. United States Department of Agriculture data shows that exports of consumer-oriented products—including beef, poultry, dairy products, and fresh and processed fruits—grew by over 350 percent between 2001 and 2011, from $697 million to $3.1 billion. Exports of semi-processed products—such as livestock feed, sugar and sweeteners, and wheat flour—have more than doubled, from $828 million to $2 billion during the same period.

Meats and animal products account for much of this growth. Like many developing countries, ASEAN nations have increased their consumption of meat—particularly beef and chicken—and dairy products over the past ten years as consumers increase food expenditures. For example, Vietnam’s per capita income increased 229 percent, from $413 to $1,362, between 2001 and 2011, during which time the country’s per capita consumption of meats—beef, pork, and poultry—nearly doubled to 36kg (79lbs) per person. Although pork is still the meat of choice, Vietnam’s per capita consumption of beef alone has nearly tripled during that period. This increased appetite for meat products has created a valuable market for US producers of fresh and frozen meat, with beef exports to ASEAN countries in 2011 valued at $252 million, $222 million for poultry, and $88 million for pork.

Many ASEAN countries are also investing in their own domestic livestock industries to accommodate expanding local consumption and improve self-sufficiency. While this has the potential to moderate some export sales of US meat and dairy products to the region, it has also boosted US exports of animal feed. This trend has encouraged trade in bulk commodities, such as corn and wheat, but has also expanded the market for semi-processed intermediate products, including soybean meal and byproducts of ethanol production, such as dried distillers grains. Overall, the United States has increased its exports of feeds—distillers grains, hay and residual vegetable material—to ASEAN countries almost sevenfold between 2001 and 2011.

US exports of other consumer-oriented goods, such as fruit and vegetable products, and snack foods, are another important component of higher-value agricultural trade. US exports of fresh, processed, and juiced fruits and vegetables have increased 140 percent over the past ten years, in particular fruits that are not widely grown in ASEAN’s tropical climate. The US apple industry has tripled its sales of fresh apples to Indonesia—from $21 million in 2001 to $65 million in 2011. Similarly, over the past ten years US companies have nearly doubled their sales of snack foods, including baked goods, confectionery, and potato chips.

Looking ahead, increased competition for ASEAN market share will be a major challenge for US producers, particularly given the advantages China, Australia, and New Zealand will derive from their recent ASEAN FTAs. As these agreements take effect, producers in these countries will face lower tariffs than US producers on a number of products, including many higher-value products where the United States has experienced strong export growth. This is likely to remain a competitive disadvantage for US producers for the foreseeable future. With the exception of Singapore, the United States has not entered into any trade agreements with any individual ASEAN members.

However, the United States is currently negotiating with eight other Asia-Pacific countries for a Trans-Pacific Partnership (TPP) trade agreement, which according to the Office of the United States Trade Representative (USTR) aims “to enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.” Four ASEAN countries—Brunei, Malaysia, Singapore and Vietnam—are participating in these negotiations, and if an agreement is implemented, USTR believes it would help the competitiveness of US products in ASEAN markets.

The relationship between US agricultural exports and ASEAN consumers continues to grow, with the United States continuing to increase its shipments of bulk commodities which have been the foundation of its trade with ASEAN, while also bringing new products to the region as incomes increase and consumers’ eating patterns develop. But it is clearly evident that competition in ASEAN’s markets will increase as US competitors encounter lower tariffs through their respective trade agreements. However, the region is projected to continue its economic growth over the next ten years, which means that ASEAN will likely remain a significant and growing market for US food and agricultural products.

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Vietnam President Truong Tan Sang speaks at the East-West Center on Nov 11, 2011.

Vietnamese and Americans joined together in Hanoi last December for a happy celebration, commemorating the tenth anniversary of the entrance into force of the US-Vietnam Bilateral Trade Agreement signed in December, 2001. The gathering of current and former trade negotiators, diplomats, and business leaders exchanged witty anecdotes about who had been the toughest negotiator. However, the main focus for both American and Vietnamese participants was on the positive prospects for future US-Vietnam relations across the spectrum of trade and strategic common interests.

For those of us who served in Vietnam during the war years, this celebration was the latest reminder of the remarkable transformation of a relationship from one of bitter foes to strategic partners. Ties between the United States and Vietnam have steadily improved since they were formally normalized in 1995, but the pace has accelerated during the past three years, motivated in part by shared concern over China’s aggressive maritime claims in the South China Sea.

Washington views Vietnam as a rapidly developing mid-sized country of some 90 million people, and Hanoi has been increasing its leadership role in Southeast Asia, a region that has America’s renewed attention. In turn, the Vietnamese leadership seeks regional stability, global integration, new foreign investment, and markets for its export industries, goals that require good relations with the United States.

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Boeing Next-Generation 737s on production line in Renton, WA. Image Source: Boeing

Last November, Boeing announced its largest ever commercial sale when it signed a deal with Indonesia’s Lion Air for 230 aircraft valued at $21.7 billion. The importance of the commercial aviation industry to the U.S. overall economy cannot be overstated. Slate reported that Boeing’s exports in 2009 made up 1.8 percent of total U.S. exports, to the tune of just under $29 billion, and the Federal Aviation Administration reported in August that, “Civilian aircraft engines, equipment and parts also contribute $75 billion toward the U.S. trade balance.” Now, U.S. aircraft manufacturers have set their sights on Southeast Asia, where booming economies will drive growth in commercial aviation – and demand for new aircraft – over the next few decades.

This boom is good for the U.S. economy. The agreement with Lion Air, Indonesia’s largest private airline, will help support over 110,000 U.S. workers at Boeing and its suppliers in 43 states, according to the White House. The sale of 201 Boeing 737 Max and 29 Next Generation 737EF aircraft will particularly help Washington State’s economy, as the Boeing factory in Renton will build the 737 Max. Washington’s economy is expected to outperform the national U.S. economy in 2012 partly as a result of the 737 Max contract, according to the Economic and Revenue Forecast Council, and the Seattle Times reported that Boeing added 8,000 jobs in Washington during 2011.

The demand for commercial aircraft in ASEAN countries is likely to continue on robust medium-to-long-term economic growth, resulting in increased demand for business and leisure—especially intra-regional—air travel. Bloomberg reports that Lion Air is now planning fights to China, Taiwan, and Korea after this latest deal.

Southeast Asia intra-regional flight frequency growth. Source: Boeing Current Market Outlook 2011-2030 Report

Southeast Asian nations are ramping up efforts to accommodate their aviation capacity. Boeing estimates that throughout Southeast Asia, “Twenty-seven projects to upgrade and expand airports have been completed, begun construction, or are being planned.” A recent report in the Wall Street Journal highlighted how Singapore Changi Airport includes family-friendly amenities, movie theaters, nap rooms, an amusement park, and even a bus tour of Singapore for passengers on overlay. According to the IATA 2011 Annual Report, Southeast Asian civil aviation authorities are taking other measures to attract business including reducing airline landing fees, initiatives adopted by both the Airports of Thailand Authority and Singapore Changi Airport.

Boeing’s Current Market Outlook 2011-2030 report estimates that the current fleet of 1,050 commercial aircraft in operation with Southeast Asian airlines will increase to 3,150 by 2030 to meet this growing demand, a potential market value of US$410 billion. Furthermore, Boeing predicts that, “During the next twenty years, approximately half of the world’s air traffic growth will be driven by travel to, from, or within the Asia Pacific region. Total air traffic for the region will grow by 6.7 percent per year during this period.” This will entail greater demand for long-haul aircraft, and according to Boeing, “Approximately 43 percent of large airplane deliveries over the next 20 years are expected to go to Asia, with China and Southeast Asia accounting for most of the delivery demand.” It is no coincidence that Boeing launched a six-month “world tour” for its 787 Dreamliner new generation passenger plane in Beijing, China, on December 4.

Projected Global Market Growth for New Airplanes 2011-2030 Source: Boeing Current Market Outlook 2011-2030 Report

Both Boeing and its European competitor Airbus—the world’s largest manufacturer of commercial aircraft—are competing for the Asia-Pacific emerging market. Boeing predicts that there is a potential global market for 33,500 new aircraft over the next twenty years, of which 11,450, or 34 percent, are destined for the Asia-Pacific. Of those, 2,750 are destined for Southeast Asia. In preparation for this increased demand the company is currently working with its suppliers in the United States to ensure that they are able to meet and maintain the inventory supply chain with increased orders.

Southeast Asia will remain a highly competitive market for both U.S. and European aircraft manufacturers for the foreseeable future. As the United States continues to deepen its economic engagement with Southeast Asia, exports of high-value and high-quality manufactured goods, such as commercial aircraft, are key components of this economic strategy. Singapore Airlines’ decision in August to buy an additional eight Boeing 777-300ER aircraft worth $2.4 billion, in addition to the 85 Boeing 777s that it has already purchased, reminds all why Southeast Asia is an important market for the U.S. commercial aircraft industry and its related suppliers.

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In Cambodia, Secretary Campbell met with the Cambodian Foreign Minister to discuss bilateral cooperation and support Cambodian leadership of ASEAN events in 2012. This year is the 35^th anniversary of the United States’ engagement with ASEAN and Secretary Campbell also announced that Washington, D.C., will be hosting the 4^th US-ASEAN Summit in November. Campbell said “I look forward to visiting Cambodia many times in the months ahead” in preparation for ASEAN events this year.

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Andrew J. Shapiro, Assistant Secretary of State for Political-Military Affairs

Andrew J. Shapiro, Assistant Secretary of State for Political-Military Affairs, has begun his week-long trip to Southeast Asia to strengthen defense and security ties within the region. From February 8-16, Assistant Secretary Shapiro will be travelling to the Philippines, Indonesia, Singapore, and Malaysia. Assistant Secretary Shapiro’s agenda is as follows:

February 9-11, Manila, Philippines – Building on consultations from the recent U.S.-Philippines Bilateral Security Dialogue held in Washington on January 26-27, Assistant Secretary Shapiro will consult with senior civilian and military officials on how to further enhance defense and maritime security cooperation.

February 12-13, Jakarta, Indonesia – Assistant Secretary Shapiro will meet with senior officials to further bilateral political-military cooperation. A key issue to be discussed is Indonesia’s recent decision to upgrade its air force with the acquisition of F-16 aircraft. Assistant Secretary Shapiro will also attend the groundbreaking for the new U.S.-funded barracks at DeoSentul Peacekeeping Training Center in West Java, which is Southeast Asia’s largest training facility for specialized military and civilian personnel serving in UN peacekeeping forces.

February 14-16, Singapore – Assistant Secretary Shapiro will attend the 2012 Singapore Air Show, which is the largest aerospace and defense event in Asia. There will also be meetings with senior Singaporean government officials and industry representatives to discuss political-military and defense trade issues.

February 15, Kuala Lumpur, Malaysia – Assistant Secretary Shapiro will hold bilateral meetings with senior civilian and defense officials from Malaysia.

For more information, click here to view the U.S. Department of State’s Press Release.

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