ASEAN Economic Community (AEC) was initiated by the ASEAN leaders’ vision to transform ASEAN into regional economic integration. The AEC would have combined population of over 584 million people which would create a large regional market. Not only the market opportunities, but also a source of raw materials and skilled labor attract foreign direct investment and increase bargaining power of the region in the international trade arena. At the 12th ASEAN Summit in January 2007, the ASEAN leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 with the goal to transform ASEAN into a competitive region with free flow of goods, services, investment, skilled labor, and capital. This paper presents characteristics and elements of the AEC with the purpose to create a) a single market and production base, b) a highly competitive economic region, c) a region of equitable economic development, and d) integration into global economy.