Hanoi (VNS/VNA) - Although intra-bloc tariffs have been almost eliminated, non-tariff barriers still increase costs and reduce the competitiveness of Vietnamese goods in the ASEAN market.
Experts made this assessment at a workshop titled "Easing Non-Tariff Barriers to unlock ASEAN’s potential" jointly organised by the Vietnam Investment Review and the New Zealand Embassy on June 27.
Opening the workshop, Deputy Editor-in-Chief of Vietnam Investment Review Le Trong Minh said that although the Association of Southeast Asian Nations (ASEAN) has eliminated more than 99% of intra-bloc tariffs, non-tariff barriers (NTBs) remain significant obstacles to trade and investment in the region.
“In the context of ASEAN moving towards its 2045 vision to strengthen economic connectivity and digitalising trade, removing NTBs is an urgent requirement,” said Minh.
According to a World Bank report, there are nine common groups of NTBs, of which animal and plant quarantine and food safety (SPS) account for 37.5%, as well as technical barriers to trade (TBT). Although these measures aim to protect health, the environment and consumers, if they lack transparency or are not consistent, they can become invisible barriers that increase costs, prolong customs clearance times and create risks for businesses.
“For small and medium-sized enterprises, the cost of complying with NTBs such as product re-inspection, lack of information on technical changes, halal certification or unsynchronised digital procedures is a significant burden. NTBs can account for up to 2-4% of the value of goods, and if 10% of costs due to NTBs can be reduced, ASEAN can increase trade by 3-4%, equivalent to tens of billions of US dollars,” Minh said.
Country Director of NielsenIQ in Vietnam, the Philippines and Myanmar Nguyen Anh Dung pointed out three major challenges for businesses when approaching the ASEAN market: separate domestic standards, fragmented distribution infrastructure and differences in consumer culture.
“For example, a cosmetic product licensed in Thailand may not be accepted in Vietnam if it does not have a secondary label or makes changes to the ingredient declaration. The food industry faces even more difficulties in Muslim countries like Malaysia and Indonesia due to the halal certification requirements with complicated procedures, high costs and a long processing time,” said Dung.
Dung also highlighted issues with logistics and domestic distribution barriers. Many global brands have difficulty penetrating provinces outside of major cities, due to fragmented distribution infrastructure and a lack of reliable domestic partners.
"To overcome barriers, businesses need to understand not only the law but also the market. Using data on purchasing behaviour and local consumer trends is key to helping businesses take the right approach, prioritise the right categories and choose the right local partners to accelerate," Dung added.
Le Hang, Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that NTBs are a major obstacle to exports to ASEAN, especially SPS and TBT measures as well as import licence requirements.
“ASEAN countries often apply strict regulations on quarantine, certification and food safety standards. To comply, businesses must provide additional documents, conduct laboratory testing or adjust production processes. For small businesses, this is a huge barrier,” said Hang.
To support businesses in overcoming barriers, VASEP has acted as a bridge between businesses and management agencies, proposed policies, organised trade promotion and provided training on traceability, ESG and raw material area development. Many recommendations have been acknowledged by the Government, contributing to removing bottlenecks and maintaining export orders, according to Hang.
The event is a platform for exporters and business leaders to share their experiences with non-tariff barriers. It will also explore actionable policy options for improving trade flows and shaping future negotiations, particularly in light of the global trade environment, support Southeast Asian governments in enhancing long-term market competitiveness, strengthen regional business networks and equip companies with the tools needed to remain resilient and competitive./.
VNA
