The Ministry of Planning and Investment recently cooperated with the Vietnam – Laos – Cambodia Economic Cooperation Development Association to hold the Greater Mekong Subregion Development Forum with the theme of “ASEAN Economic Community – Opportunities and challenges” in Hanoi. The forum discussed opportunities and challenges of Vietnam before the threshold of regional economic integration. Particularly, it emphasised the State role in directing businesses when they join the ASEAN Economic Community (AEC) in 2015.
The core objectives of the AEC are stable, prosperous, highly competitive economic development and global economic and integration. 2015 will mark an important milestone in ASEAN cooperation in general and regional economic integration in particular. The formation of the AEC will make ASEAN a unified common market with a free movement of goods, services, investment and labour and a freer movement of capital. The AEC will help businesses expand trade, attract investment, boost exports, reduce import costs, lower product costs and access wider markets.
Hoang Van Phuong, Head of ASEAN Committee under the Multilateral Trade Policy Department, the Ministry of Industry and Trade, said, the direct and biggest impact of the AEC formation is the trade in goods. Member countries will open their markets to Vietnamese goods and Vietnam also has to open its market to theirs. Hence, when Vietnam joins this community, companies with more advantages in export will become stronger while companies with weak competitiveness against imported goods will face serious challenges. He said Vietnamese companies must raise their competitiveness and capabilities to undertake high-valued production and supply processes. With weak competition, they will be hardly able to penetrate into AEC member countries while difficultly protecting their home ground – the Vietnamese market. Without high competitiveness, they will not be able to join high-valued production and supply chains but only take on lowly-valued, lowly-profitable stages.
Vu Van Chung, Deputy Director of Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, said then the AEC is formally formed in 2015, Vietnam’s labour market will be widely opened. And with abundant low-cost labour, Vietnam will have a hugely competitive advantage to attract foreign investors.
However, according to some experts, now as well after Vietnam joins the AEC, its current strengths may be weakened and fiercely competed by other countries in the region. And when Vietnam enters the AEC, the free movement of highly skilled labour will be allowed. This requires Vietnam to have good solutions and policies to prevent expertise drain. Vietnam has made initial preparations but companies’ readiness is not high and their understanding about regional integration policies is limited and inadequate. Therefore, authorities must grasp information and business potential to avoid integration risks.
To prepare for the AEC in 2015, the Government of Vietnam and relevant agencies have carried out measures to be more active in broad and deep ASEAN economic integration. Vietnam is accelerating the development and perfection of the legal system on investment and business; quickening economic reform; and streamlining administrative procedures related to business establishment, market entry, construction, land lease, customs clearance, tax payment, social insurance, and recruitment to ensure the lowest expenses and the shortest time for enterprises and investors.
Anh Phuong
Đăng ký: VietNam News