Vietnamese Businesses Short of Information on AEC Integration

At the meeting, Dr Doan Duy Khuong reaffirmed that ADB has financed many programmes/projects which have been effective in Vietnam.Vietnam highly appreciates relations with ADB and regards it as a leading donor providing capital, technical and consultative assistance.

 

Concerning AEC and opportunities for Vietnamese businesses, Dr Doan Duy Khuong reaffirmed that the formation of AEC in 2015 is a turning point in ASEAN history, marking the comprehensive integration of Southeast Asia's economies. Vietnamese businesses have more opportunities but no less challenges to participate in the common market. Therefore, it is most necessary to provide information to assist businesses.

 

According to VCCI Vice President, by the end of October 2015, AEC Score Card showed that ASEAN has implemented 92.7 per cent, or 469 of 560 priority measures of trade and investment in AEC overall plan. Vietnam is among first ranking countries in the process with 94.5 per cent.

 

However, as Dr Doan Duy Khuong assessed, the competitiveness of Vietnamese businesses has been improved, but insignificantly. Most small businesses have only small market shares, weak science-technology potentials, and few famous trademarks, sub-contracting for export items, depending on imported input, poor quality of manpower and low percentage of trained workforce.

 

Regarding AEC, most Vietnamese businesses do not have sufficient knowledge of AEC challenges and are not ready to make use of the opportunities offered by AEC. It is due to the lack of public education and coordination on AEC integration by government authorities, failing to reach macro level and efficiency.

 

Furthermore, businesses are not prepared to compete with opponents in the region, especially in the labour market. Only over 40 per cent of businesses fully understand the impact of AEC on their business activities, a truly low percentage compared with other ASEAN members such as Thailand or Singapore.

 

VCCI Vice President reaffirmed that, due to limited knowledge, Vietnamese businesses (especially SMEs accounting for major part of the business community) have difficulties in benefiting from the privileges and opportunities offered by AEC (in taxes, customs formalities, mutual recognition of certain sectors, and sectors of privileges in ASEAN).

 

For her part, Ms Kanya S. Sasradipoera reaffirmed that ADB activities in Vietnam cover from projects on agriculture, natural resources, urban services and public management to major infrastructure projects such as roads and energy. ADB strategy and programme in Vietnam are closely coordinated with development programme of the government and especially assistance to equal growth.

 

Ms Kanya S. Sasradipoera said that ADB wish to know the development plan of Vietnam in the coming years, especially the integration with ASEAN in main areas such as the reform of State-owned enterprises and development of small and medium-sized enterprises.

 

She disclosed that ADB has developed a plan assisting countries in the region including Vietnam to increase knowledge and competitiveness to make the best use of opportunities offered by AEC.   

Sharing the same view, Dr Doan Duy Khuong said that the information on integration is most needed. VCCI has also organised several seminars providing information to businesses. However, it is still necessary to organise more assistance programmes on integration to promote proactive integration with reports and research on the ASEAN market. Meanwhile there must be also programmes to promote linkage of potential businesses to develop comparative advantages and competitiveness.

 

VCCI Vice President hopes that ADB continues with projects on industry and commerce to help bolster economic reform, upgrade national competitiveness and make the most of the opportunities brought by AEC and economic integration in general.