Investing in ASEAN: Vietnamese Businesses Get Benefit

Private economic sector is one of natural developments of globalization or international economic integration. In fact, globalization or international economic integration starts from private economic sector. Therefore, it is natural that private sector participates and contributes more and more in the globalization, national, regional and world economies. And of course, other participants, governments, nations, businesses and people, all share the benefit.

 

By its development in the past years, the private sector has proven its role in the world economy. However, much to be done before the private sector can fully build up its potential to develop national economy.

 

ASEAN Summit 2008 takes place in special circumstances. The host country Thailand has some difficulty at home. ASEAN Charter has just ratified by member countries. The financial crisis is leading to an economic crisis. In such conditions, the implementation of ASEAN objectives to establish ASEAN Economic Community in 2015 has both challenges and opportunities. Besides the financial crisis, the participants also discussed and found several opportunities in the challenges. For instance, the financial-economic crisis in the US and Europe will lead to redundant manpower in industries that ASEAN are still weak such as auto and supporting industries, especially financial, banking sectors of high expertise. The surplus human resources will be beneficial for ASEAN if the government and private sector can make use of high expertise with lower expenses. Furthermore, increased investment in ASEAN from the US and Europe is more profitable.

 

However, the private sector also needs the support and guiding of the government and ASEAN leaders to surmount challenges and make good use of opportunities.

Information on ASEAN is still a problem. Though established since 1992, ASEAN Secretariat and Council as well as member countries failed to increase the awareness of the people in the region on ASEAN. In reality, ASEAN has many programmes, tax rate is almost Zero, customs and visas are much more favourable. There are also several frameworks for cooperation between member countries and with big partners as the US, Japan, EU. Vietnamese businesses can benefits from such frameworks to increase competitiveness and expand markets. I think that the government and promotion institutions such as VCCI and Business Consulting Council can play an important role. However, those institutions must be stronger to provide businesses with correct and timely information.

 

Though Vietnamese investment in foreign countries is still limited and mostly in Laos, while ASEAN countries invest more in Vietnam, the present time is most profitable for Vietnamese businesses to invest in ASEAN countries. The older ASEAN members having stronger linkages with the US and Europe will have more adverse impact from the financial crisis. Consequently, Vietnam with less impact can have more opportunities than other ASEAN countries. Vietnamese businesses can even buy back ASEAN projects in difficulty in Vietnam and increase investment in ASEAN. While Vietnamese businesses have difficulties in traditional markets in the US and Europe, they can expand markets in ASEAN. They must develop strong products meeting the demand of ASEAN, thereby reduce the trade deficit and later on achieve trade deficit.

 

Vietnam will play host to ASEAN Summit 2010 and ASEAN BIS. It will be a good opportunity for Vietnamese businesses to exchange business information with ASEAN businesses. Vietnam can also introduce its investment environment to increase cooperation with other ASEAN members. The Summit will promote cooperation and competitiveness inside ASEAN as well as with ASEAN partners.