09:37 | 15/12/2015 Investment
(VEN) - The ASEAN Economic Community (AEC) is scheduled for establishment on December 31, opening tremendous opportunities and challenges for Vietnam. Vietnam Economic News’ Nguyen Hoa spoke with economist Le Dang Doanh about possible ways to make the most of these opportunities.
To realize the opportunities posed by AEC, businesses need to connect with each other to strengthen their finance and markets
What opportunities and challenges will AEC pose for the Vietnamese economy?
AEC’s establishment will bring ample opportunities and challenges for the economy. Regarding opportunities, after AEC is established, goods from the 10 member countries will enjoy zero percent tariffs; services and skilled labor in eight priority areas will be exchanged; financial connection between the countries will increase strongly; transport services will be better linked; and Vietnam will have great opportunities to open its markets, develop services and increase exports.
However, there will also be big challenges as the Vietnamese market will open up for all 10 member countries. Goods from more developing countries will flood the Vietnamese market. Unless domestic businesses closely observe their ASEAN commitments, they could face legal challenges around issues such as dumping, by regional companies.
I can’t answer this question as there will be more or less opportunities than challenges based on the level of our efforts. If our efforts are insufficient, challenges will increase.
What should Vietnam do to make the most of these opportunities and overcome the challenges?
Both government and businesses must try their best. As for the government, it is necessary to improve the business environment and facilitate businesses. In the short term, ministries, sectors and local authorities need to implement Resolution 19/2015/NQ-CP on improving the business environment, sharpening competitiveness and seriously deal with ministries and sectors which cause difficulties for businesses.
In addition, the government issued Instruction 15/CT-TTg on July 7, 2015 on the further implementation of Politburo Resolution 22 on international integration including the establishment of AEC at the end of this year. However, to make the most of AEC opportunities, the government needs to give better guidance.
As for businesses, to realize the opportunities posed by AEC, they need to connect with each other to strengthen their finance and markets, seek more partners from ASEAN countries to increase exports, and increase competitiveness via new technology and improved product quality in order to maintain their share in the domestic market and expand export markets.