In the process of ASEAN free trade area tariffs reduction framework (CEPT/AFTA), from January 1, 2006, some 96 per cent of tariffs will be at a maximum 5 per cent. VIB Forum reporter conducted an interview with Ms. Nguyen Thi Bich, Head of International Co-operation Department, Ministry of Finance.
How can Vietnam continue the reduction of tariffs in the framework of CEPT/AFTA in the coming month?
To implement CEPT/AFTA commitments, the Ministry of Finance has completed all formalities and submitted them to the Prime Minister in preparation for a Decree on the list of related items in 2006-2013 period. Accordingly, from January 2006, all Vietnamese imports from ASEAN in the framework of CEPT/AFTA will receive tariffs of 0-5 per cent.
What about items on the general exception list (GEL)?
According to CEPT/AFTA, concerned countries shall not include items harmful to national security, social morality, community health and antiquities in the tariff reduction list.
Each ASEAN member has a list depending on its interests and ASEAN terms. As a result, 10 ASEAN countries have 10 different GEL lists. To increase regional trade and economic integration, ASEAN countries have recently reviewed their lists. Vietnam has the longest list of nearly 400 items. After consulting with related ministries and seeking the permission of the Prime Minister, Vietnam has held discussions with other ASEAN countries on such items as automobiles, motorbikes, cigarettes, and petroleum in order to balance national interests with regional commitments.
And many sectors do you think will have difficulties?
Naturally, without tariff barriers, concerned sectors will be exposed to challenges. Most of Vietnamese enterprises are small and medium sized with little competitiveness. However, the road map was developed and announced nearly 10 years ago, and the process will be implemented in steps. The pace of reduction will help enterprises improve their competitiveness. Experiences show that continued protection will finally neutralise social interests. I believe that after AFTA, Vietnamese businesses will face challenges of WTO and free trade areas between ASEAN and China, and Republic of Korea among others. Vietnamese businesses must transform themselves in domestic and world markets.
Will enterprises in difficulties receive some assistance?
We do not have a particular assistance to any enterprise or sector for it would violate international commitments and lead to inefficient use of resources. However, the enterprises are not “lone rangers” in the process of integration. The government and concerned authorities are trying to help them as it has been laid down in the “objectives and financial solutions from 2006-2010”. For its part, the financial sector will also help in solving issues arising from the implementation of international commitments.
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