The ASEAN Economic Community (AEC) would bring challenges, as well asimproved export opportunities for Vietnam when the AEC is formed in2015, according to experts.
The AEC marks thecommitment of ASEAN leaders to building and promoting a single marketand production base, a highly competitive economic region tempered withequitable development, and a region fully integrated into the globaleconomy.
Experts said the AEC would also create greateropportunities for exporting goods and services to the ASEAN market,though local enterprises have faced many difficulties in production andbusiness.
Deputy Minister of Industry and Trade (MIT)Do Thang Hai said the trade turnover between Vietnam and ASEAN hasquadrupled over the past decade, climbing to nearly 40 billion USD in2013 from 9 billion USD in 2003. Last year, Vietnam took in 18.47billion USD from its exports to the bloc, the country's third largestimporter only after the US and the EU, which was an increase of 4.4percent from the previous year, added Hai.
Meanwhile,export turnover was estimated at 4.7 billion USD in the first quarter ofthis year, a year-on-year increase of 6.4 percent. However, the figurehas tended to remain steady, and even slowed on occasion, as domesticenterprises have not yet taken full advantage of the close geographicaldistance and incentives offered by the ASEAN Trade in Goods Agreement(ATIGA).
Hai said ASEAN is one of Vietnam 'sleading trade partners, accounting for 15 percent of the country's totaltrade. The regional grouping made up 22.4 percent of total foreigndirect investment (FDI) capital in 2013 with Singapore , Malaysia andThailand being key investors.
AEC and free trade agreements (FTAs) have helped promote Vietnam 's exports to ASEAN, Hai stressed.
Thanh also forecast that exports to these markets wouldcontinue to growsteadily as more than 99 percent of tax rates of six ASEAN countries –Brunei , Indonesia , Malaysia , the Philippines , Singapore andThailand – will be slashed to zero in 2015 under the ATIGA signed inThailand in 2009.
This would provide plenty of opportunity for Vietnam to balance its trade, Thanh added.
Hai said Vietnam would have a significant opportunity for majorexport products, such as textile, garments, rice, seafood and electroniccomponents.
When the AEC is formed, Vietnam couldsell goods to ASEAN market in ways that are similar to selling in homemarkets, because of simplified trade procedures and new procedures forcertifying the origins of products.
However, Chu DucKhai, general secretary of the Vietnam Steel Association, said mostlocal steel enterprises have had a lack of information about conductingbusiness in the ASEAN market, the AEC and the benefits, as well aschallenges, of doing business in the regional market.
They have not had the chance to study the ASEAN market, and steelcompanies have only exported small amounts to ASEAN countries, includingthe Philippines, Cambodia and Indonesia, with a total volume of 1.7million tonnes and a value of 1.4 billion USD, Khai said.-VNA