Vietnam ready to join the ASEAN Economic Community

Vietnam has taken basic steps to prepare for integration in the ASEAN Economic Community (AEC), especially on governance and reform of institutions and administrative procedures consistent with international practices, as well as committed agreements.

Illustration photo (Photo: Thai Thien)

Nguyen Anh Duong, Deputy Director of Macroeconomics Department under the Ministry of Planning and Investment’s Central Institute for Economic Management (CIEM), made the statement during a workshop on December 12 to assess the readiness of Vietnam ahead of joining the AEC in 2015.

According to CIEM, the AEC will be a dynamic economic region, increasing competitiveness and integration in the global economy. The AEC will also be a key tool for increasing global economic growth, as an important partner of regional and global powers such as the US, China, EU, and Japan. The AEC is considered rich in potential with a market of more than 500 million consumers, relatively high economic growth, a young population, and a favourable geographical location.

According to Deputy Head of CIEM Vo Tri Thanh, Vietnam still faces a number of difficulties, especially in terms of the quality of human resources and infrastructure, while the global competitiveness of the economy has yet to be improved significantly.

Thanh suggested that Vietnam have appropriate measures to improve internal potential, develop effective macroeconomic policies, and facilitate the integration process by attracting investment. In particular, the Government should be prepared and willing to actively integrate and compete within the AEC on all levels. In addition, the business environment should be improved, legal frameworks completed, and support given to enterprises working to improve technological innovation and market research.

Some noted the AEC is a region with varying levels of development, making it necessary for each country has its own rational initiative and plan for participation.

According to economists, the AEC will provide a good opportunity for Vietnam to strongly expand its market with lower input costs and more investment opportunities, while also intensifying competition at home, especially in the manufacturing industry and agriculture.

The AEC was established with the purpose of creating a united market and production base for ASEAN member countries, and promoting the free flow of goods, services, investment, and skilled labour among ASEAN countries. In 2003, leaders of ASEAN defined the ASEAN Vision 2020, which consists of three main pillars: the ASEAN Political-Security Community (APSC), the ASEAN Economic Community (AEC), and the ASEAN Socio-Cultural Community (ASCC). In 2007, ASEAN leaders decided to accelerate the establishment of the AEC to 2015.

There are 12 sectors on the priority list during AEC integration: agricultural products, aquatic products, rubber, wood, textiles, electronics, and automobiles, aviation, e-ASEAN (e-commerce), medical services, information technology, and logistics.

(Source: nhandan.org.vn)