Opportunities and challenges with AEC formation in discussion

An international seminar discussing the opportunities and challenges that will be presented to Vietnamese businesses with the formation of the AEC (ASEAN Economic Community) was organised by the Bank for Investment and Development of Vietnam on June 10th, in Hanoi.

The seminar was attended by more than 200 guests from embassies of ASEAN countries in Vietnam, state management organs, businesses, financial institutions, research institutes, universities and associations.

2015 marks a year of extensive integration activity for Vietnam including a series of Free Trade Agreements, which have been negotiated and signed, all of which have far reaching consequences.. In Southeast Asia, Vietnam and other ASEAN countries will form the AEC on December 31st, 2015. This is a turning point for the comprehensive integration of Southeast Asian economies, towards a common community established on the basis of the pillars of economics - politics, security - culture - society.

Mr. Phan Duc Tu, General Director of BIDV spoke in his opening speech that international economic integration is dispensable, general trend and its impacts are very deep and wide. For an economy, integration brings opportunities to expand markets, increase trade turnover and create a driving force to speed up the activities needed to attract investment capital to Vietnam as well as from Vietnam to other countries.

Integration also facilitates partner seeking, business connection, technology transfer and management experience exchange. However, international economic integration also poses huge challenges and risks, Mr. Tu added.

According to former Deputy Prime Minister Vu Khoan, the reason Vietnam decided to embrace international economic integration was to expand market share and take advantages of increased capital and improved technology. In addition, together with innovation in every aspect, Vietnam had innovation towards thinking about the world outside.

However, during the integration process, Vietnam still saw limitations such as overlapping, unclearness, non-transparency and non-consistency in legal practice, weak infrastructure and increasing FDI inflow but little hi-tech density, the former PM stressed.

Mr. Jeffrey Pirie, Executive Director of Deloitte Singapore said that the formation of the AEC implies that the economy will become more connected than ever for regional goods, integration into the global supply chain will be closer and firmer, production and distribution network will be expanded and trade transaction volume will grow rapidly.

(Source: nhandan.org.vn)