Vietnam AEC integration: The more waves even more firmly to rowers

Starting on 31.12.2015, the ASEAN Economic Community (AEC) takes effect. ASEAN has officially become a single economic community with a population of over 620 million people.

The launch of the AEC is the result of 13 years of construction and preparation since the first idea about common economic community for Southeast Asia was proposed in 2002. The road towards AEC capital formation is not easy and after 2015, the gradual realization of this single economic block will also innumerable difficulties.

To understand the challenges that Vietnam and adjacent AEC should pass on new integration roadmap, Vietnam News Agency reporter interviewed Associate Professor Nguyen Hoang Anh-doctoral, Deputy Director of Institute of Economics and International Trade , Foreign Trade University.

- How do you evaluate the timing AEC Community entered into force on 12.31.2015?

Associate Professor Dr. Nguyen Hoang Anh-: Late 2015 is really a good opportunity. Considering toward Vietnam, most of the year ending in the number 5 are in there are great opportunities, the opportunities for the country, such as the 1945, 1975, 1995 and recently in 2015.

Vietnam never again had a brilliant time so in the integration process. This year alone we have signed several major trade agreements, opening the way for Vietnam to integrate and improve its position in the international arena.

- In the course of preparation for the advent of the AEC, the distance between the member states most clearly is the problem? These gaps hindered how the process of integration to the AEC?

Associate Professor Dr. Nguyen Hoang Anh-: AEC divided into two groups, group AEC 6 is the first moves and positions of economic development far beyond the rest, except for Thailand recently met some difficult. The other group includes Vietnam, Laos, Cambodia and Myanmar are lagging bloc.

In AEC integration process, we also face other barriers. For example, in recent times, the trade deficit of Vietnam increased, while public debt has also increased ground for Vietnam's education compared to other countries in the region even worse.

Besides, the labor productivity of Vietnam is also less than other countries in the region.

The statistics shows that it takes 50 years, labor productivity in Singapore's new Vietnam. Labor productivity means less labor costs per unit of product will increase and make our goods become less competitive compared to goods from other countries.

- Vietnam is among the economies of less developed ASEAN CLMV group of Cambodia, Laos, Vietnam and Myanmar. When AEC integration, this group will have the opportunity and the challenges encountered what?

Associate Professor Dr. Nguyen Hoang Anh-: There are view that "the wind should not weak" but I think the opposite, weak must the wind, have seen a new wave sound both rowers. If we continue the process of labor protection as before, businesses will lose the opportunity to experience, not facing the ordeal will never be able to grow.

The first integration with ASEAN is also good preparation for us before entering the larger playing field as the TPP effect as compared to the participants in the TPP, the difference between the member countries of ASEAN not much.

And the challenge is very clear. We are a trade deficit with ASEAN. If we do not take the decision immediately, then in 2016, the deficit will be even higher.

- She commented how about the preparation and commitment of Vietnam in recent years for the introduction of the AEC?

Associate Professor Dr. Nguyen Hoang Anh-: In terms of the policy, the State has undertaken a positive way. The agency first has to reform its customs is because it is the first gateway to prove the integration of Vietnam into the AEC. Customs service has gradually simplified customs procedures and provides a roadmap of integration in each period.

Just go to Google type the opportunities and challenges, we will find millions of results immediately. On all fronts, the government will actively promote the work of preparing for the AEC.

- Prospects for economic, trade and investment in Vietnam as well as the regional economy as effective AEC?

Associate Professor Dr. Nguyen Hoang Anh-: We all know that effective AEC how depends on the level of active participation of the countries. So far, ASEAN is a mass political success rather than economic success.

In the current context, the countries in the region are not in a favorable phase of the economic, so we do not dare to affirm the positive outlook of the AEC.

However, we can see that when governments agreed to go to this decision, even speeding up the establishment of the AEC, we can expect that governments will actively conduct deeper integration for the region.

- Based on an assessment of relative industries and exports in the AEC, according to her, the public sector in Vietnam will be the most competitive?

Associate Professor Dr. Nguyen Hoang Anh-: One of the sensitive sectors, affecting the lives and incomes of a large segment of the population, which is agriculture.

Vietnam's agricultural products both less on labor productivity, the quality is uneven and bring many notorious for ensuring food safety.

Meanwhile, the Thai partners have developed agriculture. Thai agricultural products such as rice, meat, vegetables standards, is the world accepted.

- The government has prepared for the AEC integration, but many businesses still do not understand Vietnam and not take the initiative to adapt to joining the regional economic communities. How do you evaluate this issue?

Associate Professor Dr. Nguyen Hoang Anh-: A research institute in Singapore have conducted a survey on the preparation for the AEC of the participating countries and the number they give very startled. That's nearly 79% of businesses do not know AEC Vietnam is nothing as of early 2014.

However, according to his experience as an economist Vo Tri Thanh, Vietnam now often wait for new countries to foot jump but jumps at the high jump. Thus, after a period of initial shock and loss, these are truly enterprise capacity will rise, while the latecomers will now doomed to be eliminated.

- After the official AEC implementation, quick tax cuts will make goods from ASEAN countries with high similarities to Vietnam will overflow into the local market. Vietnam enterprises need to do to increase competitiveness with rivals in the region?

Associate Professor Dr. Nguyen Hoang Anh-: The following points that Vietnamese enterprises should be noted. The first point is about the ad. Vietnam ads often lengthy and unfocused and not suggestive. Before they went to buy, to remind consumers desire, attention,

The second point is the packaging and labeling, in Vietnam has less investment firm for packaging and labeling. Goods of Vietnam for the content might not inferior goods China or other countries in the region, but on the packaging, design is always lost.

The third is that businesses need to focus on customer care service around. Vietnam enterprises when starting a business if done these three things, they will be able to build trust with consumers, then have the opportunity to keep his position on the ground before reaching the area.

- Thank you. /.

Trang Nhung

Source: Vietnam + / VNA