Over the past 10 years, Vietnam’s trade turnover has tripled, from 9 billion USD in 2003 to nearly 40 billion USD last year. In recent years, ASEAN has always been one of Vietnam’s top export markets. Last year, ASEAN was Vietnam’s third largest export market, after the US and the EU, with turnover of nearly 18.5 billion USD. In the first three months of this year, Vietnam’s exports to ASEAN totaled 4.7 billion USD, up 6.4% from the previous year.

Boosting export to ASEAN prior to AEC

Before an ASEAN Economic Community is built, Vietnam’s exports to ASEAN are predicted to increase steadily due to preferential tariffs for 99% of tariff categories. ASEAN member countries have implemented many commitments of the ASEAN Trade in Goods Agreement (ATIGA) including liberalizing tariffs, removing non-tariff barriers, improving criteria on rules of origin and trade facilitation, and simplifying and modernizing customs services.

Speakers at the forum

Pham Thi Hong Thanh, Deputy Head of the Asia-Pacific Department, Ministry of Industry and Trade, said enterprises should increase the export to ASEAN of commodities such as telephones, computers, electronic devices, spare parts, machines, iron and steel, and rice and should take advantage of a strong preference for Vietnamese products in Cambodia, Laos, and Myanmar.

Preparing to take advantage when AEC is formed

Deputy Minister of Industry and Trade Do Thang Hai said that when the ASEAN Economic Community, AEC, is established in 2015, ASEAN will become a highly competitive economic bloc. If Vietnamese enterprises can identify and grasp advantages from the AEC, they can increase business within ASEAN and with ASEAN’s free trade partners such as China, the Republic of Korea, Japan, India, Australia, and New Zealand.

Deputy Head of the Export-Import Department of the Ministry of Industry and Trade Tran Thanh Hai delivered a speech

Deputy Head of the Export-Import Department of the Ministry of Industry and Trade Tran Thanh Hai said when the AEC is established, Vietnamese enterprises can sell their products to ASEAN countries nearly as easily as to the domestic market. “The tariff has been reduced but there remain other barriers including rules of origin. Products at least 40% produced within ASEAN will receive preferential tariffs. Products with a large proportion of materials originating outside ASEAN will not be accepted.  If we cannot meet the rules of origin, the import tariff is irrelevant. Other trade barriers include anti-subsidy and anti-dumping.”

Nguyen Duc Thanh, Director of the Vietnam Center for Economics and Policy Research of the Hanoi National University, said:  “Vietnam should prepare to grasp opportunities by reorganizing and establishing a strong business community. Export plans should be based on enterprises’ strengths and uniqueness.”

Vietnamese enterprises should focus on enhancing national cooperation to create large production chains that can handle large contracts.