return icon

Businesses remain in dark about AEC formation

 VietNamNet Bridge – With less than four months before the ASEAN Economic Community (AEC) comes into force, most all of the nation’s small businesses still lack an in-depth understanding of the importance of the single regional market.

VietNamNet Bridge – With less than four months before the ASEAN Economic Community (AEC) comes into force, most all of the nation’s small businesses still lack an in-depth understanding of the importance of the single regional market.



Illustrative image -- File photo


A recent survey by the Vietnam Chamber of Commerce and Industry (VCCI) finds that two-thirds of small businesses remain in the dark, with virtually no knowledge of the AEC.

Meanwhile only one in three has even a rudimentary grasp of the opportunities and challenges that regional trade liberalization will have on their companies’ operations.

As a result, they could lose out on many opportunities AEC market integration presents, while small family businesses and farmers potentially could be hit hardest by the stiff competition it brings.

Associate Prof Dr Nguyen Hong Son from the National Economics University of Vietnam says the same lack of understanding extends to other Free Trade Agreements (FTAs) for which Vietnam is a party.

Inadequate dissemination of information

Prof Son points out the survey of businesses in the agricultural, industrial and services industries shows those in agriculture, a group most likely to be negatively impacted, have the least understanding about regional integration.

Businesses in agricultural and manufacturing can expect opportunities to expand exports as a result of the AEC and FTAs, while retail and services businesses will see prospects to broaden business alliances.

Prof Son places the blame squarely on state managers whom he complains have failed to get necessary information effectively disseminated. As a result, businesses are neither fully cognizant nor adequately prepared to cope with the increased competition the trade deals spawn.

Urgent remedial action

Nguyen Van Sua from the Vietnam Steel Association suggests the government take immediate remedial steps to rectify the situation by organizing a series of regional seminars to get the word out.

He also proposes that the state set up small business help centres throughout the country to assist businesses and residents alike to get up to speed as rapidly as possible and maximize the benefits from integration.

Director Nguyen Thi Thu Trang of the WTO Centre asserts the demand for information by businesses is huge but the immediate problem to overcome is how best to quickly get the information out in the most efficient manner possible.

Most rural businesses and particularly those in agriculture and aquaculture remain deeply anxious over the lack of information they have received about the looming AEC formation.

The biggest challenges they will face is making sure their products can meet the import standards such as health and safety and certificates of origin for import into other countries.

These final few months in the lead up to the AEC are critical as businesses make final preparations before retail goods and services come flooding across the border at substantially lower prices.

Duong Hong Minh from the European Market Department under the Ministry of Industry and Trade (MoIT) highlights the fact that the MoIT has had limited success recently with several programs to disseminate information on signed FTAs.

Minh believes these programs could very well serve as a model for future use to disseminate information on international economic integration by the leadership of the Steering Committee for International Economic Integration.




Vietnam contributes to resolution seeking ICJ’s act related to climate change

Trade Ministry signs cooperation deal with world leading fair organiser

The Trade Promotion Agency of Vietnam signed a memorandum of understanding with Messe Frankfurk Group on cooperation in trade promotion.

Over 500 individuals implicated in vehicle registration irregularities

Charges have been filed against 506 suspects for their alleged involvement in irregularities at multiple auto registration and inspection centers in the country, the Ministry of Public Security (MPS) said at a Government press conference.

Most of Vietnam’s outbound investments flow into Singapore in Q1

Vietnamese investors have injected nearly US$120 million into their projects overseas in the year to date, a sharp drop against the year-ago period, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Millions of mobile phone numbers in Vietnam to be locked soon

After March 31, the owners of nearly two million mobile phone numbers cannot make calls or send text messages as their user data stored by telecom providers does not match the national population database.

Global minimum tax rate to impact FDI firms in Vietnam

At least 1,015 foreign direct investment (FDI) enterprises will be affected by the global minimum corporate tax when this policy comes into force early next year.


VN central bank to cut refinance rate in next quarter: UOB

Feature film shot in Vietnam to be released on Netflix

Beautiful scenes of Vietnam and its people can be seen in the first official trailer of the movie "Tourist's Guide to Love".

Vietnamese badminton stars leap up world rankings

Several of the nation’s top badminton players have made significant jumps in the world rankings, according to the latest information given by the Badminton World Federation (BWF).

Paintings by local contemporary artists exhibited in UK

An exhibition displaying artworks from leading contemporary Vietnamese artists opened on May 29 at D-Contemporary gallery in Mayfair, one of London's premier shopping and entertainment centres.

Da Nang’s boat race attracts locals, tourists

Thousands of people and tourists stood on both sides of the Han River to cheer for teams participating in Da Nang’s boat race 2023, which took place on the morning of March 29.

VN central bank calls for prioritising loans for rice industry

The State Bank of Vietnam (SBV) has instructed credit institutions in the Mekong Delta region to promote lending to rice producers and traders to help them have sufficient capital, especially in the winter-spring harvest in 2023.

Around 60,000 firms close in first quarter

Roughly 60,000 Vietnamese enterprises closed their doors in the first three months of this year, representing an on-year increase of 17.4 percent.

Green offices remain key theme in HCM City commercial real estate

A flight to quality will remain a key theme in the HCM City office market in 2023 as both foreign and domestic companies are setting ambitious net-zero targets to comply with environmental, social and corporate governance (ESG) regulations.

Vietnam expected to export 7 million tonnes of rice this year: Ministry

Vietnam is expected to ship about 6.5-7 million tonnes of rice abroad this year thanks to the return of markets like Indonesia, Bangladesh, and China, according to the Ministry of Industry and Trade (MoIT).