Small and Medium-Sized Enterprises Gain Opportunities from ASEAN Economic Integration and Cooperation

DNHN - Among the noteworthy prospects are tariff incentives; as of January 1, 2018, over 97% of tariff lines had been abolished. As a result, Vietnamese companies can now access the ASEAN market at a discounted cost.

Vietnamese businesses can benefit from comprehensive insights into the potential and challenges presented by the ASEAN Free Trade Agreement (AFTA) at the session "ASEAN Market: From Initiatives to Action." Important viewpoints were exchanged by Dr Nguyen Thi Thu Trang, Director of the WTO and International Trade Centre, and Mr Nguyen Duc Trung, Deputy Director of the Agency for Enterprise Development.

Tariff incentives present significant potential; since January 1, 2018, more than 97% of tariff lines have been eliminated. Vietnamese companies can now take advantage of preferential tariffs to access the ASEAN market. Non-tariff trade barriers, such as those on import permits and food safety, have also been lowered. These actions all lower trade barriers and raise the level of competition.

But there are drawbacks to these prospects as well. The domestic market may become more difficult to penetrate due to competition from foreign goods and services. The issue of labour mobility makes it harder to hold onto skilled people. However, Dr Nguyen Thi Thu Trang highlighted that, with the right skills, one can overcome any obstacle and seize any chance.

In conclusion, Vietnamese businesses have a lot of opportunities to grow their markets and collaborate economically with ASEAN nations by joining AFTA. It also necessitates flexibility and an openness to adjusting to a new work environment.

P.V