Many Vietnamese businesses will face difficulties on both the domestic and regional markets when the ASEAN Economic Community (AEC) takes shape by the end of 2015, an official from the Foreign Investment Agency said at the Mekong Subregion Cooperation and Development Forum which took place in Hanoi on October 17.
Deputy Head of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment Vu Van Chung said businesses with low competitiveness will not be able to participate in highly profitable links in the supply chain, while labourers without skills cannot hold managerial or well paid positions.
At the same time, the formation of the AEC will allow investors both inside and outside ASEAN to enter emerging economies such as Myanmar, Laos and Cambodia, posing challenges to Vietnamese businesses operating in these markets, he said.
According to Chung, to effectively promote Vietnam’s economy in general and Vietnam’s investment climate once AEC takes shape, the Government, ministries and sectors are accelerating the building of a complete legal framework for investment and business as well as the drastic reform of administrative procedures relating to business start up, construction, land use, customs, tax, social insurance and labour recruitment.
In addition, Vietnam also prioritises the development of its support industries, and improvements to firms’ competitiveness and the quality of human resources in an effort to attract more investments to the country, he noted.
Deputy Minister of Planning and Investment Nguyen Van Trung affirmed that the Government will implement a number of measures, such as boosting bilateral and multilateral cooperation between the bloc and non-member states in order to fully benefit from the process of international economic integration.
This year’s Mekong Subregion Cooperation and Development Forum “2015 ASEAN Economic Community (AEC) - Opportunities and Challenges” aimed to increase mutually beneficial links between Cambodia, Laos, Myanmar, Thailand, Vietnam and China’s Guangxi and Yunnan provinces.
Addressing the event, Phuong Huu Viet, Chairman of the Vietnam-Laos-Cambodia Association for Economic Cooperation Development said the forum provided Vietnamese businesses, especially those who operate throughout ASEAN, with useful information on how to integrate into AEC once it is established next year.
Key discussions focussed on issues on economic and management policies, financial system reform, and the role of State management bodies in helping enterprises resolve difficulties.
The AEC aims to establish a single common market that enables the free movement of goods, services, capital and skilled labour within ASEAN, thus increasing competitiveness, promoting prosperity in the region and attracting external investments.
Former Deputy Prime Minister Vu Khoan highlighted the need to design a master plan for economic integration, renovate institutions and take advantage of new opportunities emerging from the integration process.
According to the FIA, investors from ASEAN member states have invested in 55 out of 63 Vietnamese localities so far, with 2,431 projects, worth 51.8 billion USD. These account for 14.2 percent of total foreign direct investment (FDI) projects and 21.4 percent of the total FDI capital in the country.
Singapore is now the largest ASEAN investor in Vietnam, followed by Myanmar and Thailand.-VNA
Deputy Head of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment Vu Van Chung said businesses with low competitiveness will not be able to participate in highly profitable links in the supply chain, while labourers without skills cannot hold managerial or well paid positions.
At the same time, the formation of the AEC will allow investors both inside and outside ASEAN to enter emerging economies such as Myanmar, Laos and Cambodia, posing challenges to Vietnamese businesses operating in these markets, he said.
According to Chung, to effectively promote Vietnam’s economy in general and Vietnam’s investment climate once AEC takes shape, the Government, ministries and sectors are accelerating the building of a complete legal framework for investment and business as well as the drastic reform of administrative procedures relating to business start up, construction, land use, customs, tax, social insurance and labour recruitment.
In addition, Vietnam also prioritises the development of its support industries, and improvements to firms’ competitiveness and the quality of human resources in an effort to attract more investments to the country, he noted.
Deputy Minister of Planning and Investment Nguyen Van Trung affirmed that the Government will implement a number of measures, such as boosting bilateral and multilateral cooperation between the bloc and non-member states in order to fully benefit from the process of international economic integration.
This year’s Mekong Subregion Cooperation and Development Forum “2015 ASEAN Economic Community (AEC) - Opportunities and Challenges” aimed to increase mutually beneficial links between Cambodia, Laos, Myanmar, Thailand, Vietnam and China’s Guangxi and Yunnan provinces.
Addressing the event, Phuong Huu Viet, Chairman of the Vietnam-Laos-Cambodia Association for Economic Cooperation Development said the forum provided Vietnamese businesses, especially those who operate throughout ASEAN, with useful information on how to integrate into AEC once it is established next year.
Key discussions focussed on issues on economic and management policies, financial system reform, and the role of State management bodies in helping enterprises resolve difficulties.
The AEC aims to establish a single common market that enables the free movement of goods, services, capital and skilled labour within ASEAN, thus increasing competitiveness, promoting prosperity in the region and attracting external investments.
Former Deputy Prime Minister Vu Khoan highlighted the need to design a master plan for economic integration, renovate institutions and take advantage of new opportunities emerging from the integration process.
According to the FIA, investors from ASEAN member states have invested in 55 out of 63 Vietnamese localities so far, with 2,431 projects, worth 51.8 billion USD. These account for 14.2 percent of total foreign direct investment (FDI) projects and 21.4 percent of the total FDI capital in the country.
Singapore is now the largest ASEAN investor in Vietnam, followed by Myanmar and Thailand.-VNA
