Nguyen Thi Thu Trang, director of the Center for WTO and International Trade spoke about the opportunities and challenges of Vietnamese businesses when joining the ASEAN market.

Potentials, challenges and development opportunities in the international market

Speaking at the Workshop "ASEAN Market: From initiatives to action," Nguyen Duc Trung, deputy director of the Enterprise Development Department (EDD) at the Ministry of Planning and Investment (MPI) said "Economic integration in general and ASEAN cooperation in particular bring many economic development opportunities as well as opportunities to learn, transfer technology, and expand markets for small and medium-sized enterprises (SMEs) in Vietnam."

However, efforts and the right direction are still needed for businesses to take advantage of digital platforms as well as market search skills through networks in the ASEAN region.

Nguyen Thi Thu Trang, director of the Center for WTO and International Trade also shared about opportunities and challenges for businesses from free trade agreements within the ASEAN cooperation framework.

Vietnamese businesses have two clearest opportunities when joining the agreement.

First, regarding tariffs, businesses can access the markets of ASEAN countries with preferential tax rates.

Specifically, more than 97% of tariff lines in the tariff schedule will be eliminated from January 1, 2018 and nearly 3% of the remaining tariff lines will remain, including (i) the group maintaining the tax rate of 5% (sugar, rice, chicken, pigs, eggs), (ii) the group maintains the MFN tax rate (cigarettes, explosives, guns, fireworks, medical waste).

Second, trade issues will have fewer barriers. With non-tariff issues such as import licenses, food hygiene, safety and other requirements, countries within the framework of the agreement will try to reach an agreement to limit the issuance of tariffs to minimize obstruction.

However, these opportunities also pose many challenges, such as the fact that tariff incentives also make domestic competition for goods and services harsher.

While imported products have higher prices due to tariff barriers, now, these products and services can compete fairly with domestic businesses without facing any barriers.

At the same time, as countries move forward with broader commitments, labor mobility becomes stronger, creating challenges in finding and retaining good personnel.

ASEAN Access portal - Solving problems for SMEs in Vietnam

Facing the opportunities and development potential of SMEs, in order to support the provision of information and services to support small and medium-sized enterprises,

The Enterprise Development Department coordinated with the German Society for International Cooperation (GIZ) and related organizations to build and implement regional cooperation activities through the ASEAN Access portal and Business Information Portal.

Business information portal at business.gov.vn is an electronic information site that connects and provides information and support services for businesses through integrating information about businesses, consultant networks, programs and policies to support small and medium-sized enterprises.

It provides business guidance, industry and market research reports, digital transformation programs, innovation, receives business opinions and publishes state-owned enterprise information.

Mission of the business information portal.

ASEAN Access is a free online information portal for small and medium enterprises in ASEAN.

With the slogan "Information portal connecting businesses in ASEAN and beyond", ASEAN Access provides businesses with information related to trade and market access in ASEAN.

This aims to increase global competitiveness for businesses, while creating opportunities to access necessary support services to penetrate new markets. ASEAN Access possesses two outstanding features, ASEAN Access Match and ASEAN Access Learn.

Vietnamese small and medium-sized enterprises are having new opportunities in cross-border trade, especially with Association of Southeast Asian Nations (ASEAN).

Accessing these markets not only brings new opportunities but also opens up potential directions for the future of the business. Penetrating into the ASEAN market is not only an opportunity but also a challenge for Vietnamese SMEs.

Taking advantage of free trade agreements, smart, flexible and creative management will help businesses overcome difficulties, thereby building a sustainable future and development in the international market.

Businesses can access the ASEAN Access portal at aseanaccess.com to experience and take advantage of opportunities.

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