Vietnamese enterprises, especially small- and medium-sized companies,have been repeatedly warned to prepare for both the challenges andopportunities when the ASEAN Economic Community is established nextyear.
During a forum organised at HCM City University ofTechnology on November 10, local and foreign experts have expressedconcern about the preparation of Vietnamese enterprises.
Le DangDoanh, a renowed economic expert, said the GDP of Vietnam would increase13 percent within five years and the annual growth rate of the GDPwould be two percent after AEC begins next year.
With AEC, themarket for Vietnamese enterprises will expand dramatically up to 600million people, offering larger export markets for agricultural productsboth in and outside ASEAN, especially products with low productioncosts.
Under the AEC, input costs for production will be much lower for local enterprises.
Atthe forum, AEC 2015: Opportunities and Challenges for VietnameseEnterprises, Doanh predicted that the flow of skilled Vietnamese workersto neighbouring countries with higher wages could cause serious issuesfor local companies.
The expert warned that Vietnam will be one of four countries in ASEAN to become a good market for the other six ASEAN members.
"Seventy-threepercent of Vietnamese enterprises do not know about AEC and have notprepared, which shows the weakness of local enterprises, especiallysmall- and medium-sized enterprises," Doanh said.
"Six countriesare very eager for the AEC to start, while the other four countries(Cambodia, Laos, Myanmar, and Vietnam) have not been very active inpreparing for integration," he added.
Six other ASEAN members areeagerly awaiting the opportunity since they can expand markets and uselabour and resources at lower prices in the four countries with lessdeveloped economies.
In 1993, the ASEAN Free Trade Area wasestablished. ASEAN-6 including Singapore, Malaysia, Thailand,Philippines, Indonesia and Brunei have nearly completed the process oftariff reductions and non-tariff barriers, leaving a great deal ofpressure for enterprises in the less developed countries.
SuchatSawetkamon, director of research and economic development for Trade andInvestment (Thailand – Vietnam), said that SMEs in Thailand haveprepared for AEC 2015, including improving factories, building SMEbusiness clusters, SME Corporations and others.
Besides theopportunities for Vietnamese SMEs, the Thai expert warned thatVietnamese enterprises will encounter goods with high competitivenessand high quality as well as cheaper product flows in the AEC market.
As a result, several SMEs will lose their markets or go bankrupt.
Whilethe transfer of skilled labour will also be a concern, the VietnameseSMEs will need to improve technology, management and products, he said.
TheThai expert suggested that the Vietnamese government further developinfrastructure and logistics as well as offer loans for SMEs, andorganise seminars to support SMEs on manufacturing, management,products, labour and others.-VNA
During a forum organised at HCM City University ofTechnology on November 10, local and foreign experts have expressedconcern about the preparation of Vietnamese enterprises.
Le DangDoanh, a renowed economic expert, said the GDP of Vietnam would increase13 percent within five years and the annual growth rate of the GDPwould be two percent after AEC begins next year.
With AEC, themarket for Vietnamese enterprises will expand dramatically up to 600million people, offering larger export markets for agricultural productsboth in and outside ASEAN, especially products with low productioncosts.
Under the AEC, input costs for production will be much lower for local enterprises.
Atthe forum, AEC 2015: Opportunities and Challenges for VietnameseEnterprises, Doanh predicted that the flow of skilled Vietnamese workersto neighbouring countries with higher wages could cause serious issuesfor local companies.
The expert warned that Vietnam will be one of four countries in ASEAN to become a good market for the other six ASEAN members.
"Seventy-threepercent of Vietnamese enterprises do not know about AEC and have notprepared, which shows the weakness of local enterprises, especiallysmall- and medium-sized enterprises," Doanh said.
"Six countriesare very eager for the AEC to start, while the other four countries(Cambodia, Laos, Myanmar, and Vietnam) have not been very active inpreparing for integration," he added.
Six other ASEAN members areeagerly awaiting the opportunity since they can expand markets and uselabour and resources at lower prices in the four countries with lessdeveloped economies.
In 1993, the ASEAN Free Trade Area wasestablished. ASEAN-6 including Singapore, Malaysia, Thailand,Philippines, Indonesia and Brunei have nearly completed the process oftariff reductions and non-tariff barriers, leaving a great deal ofpressure for enterprises in the less developed countries.
SuchatSawetkamon, director of research and economic development for Trade andInvestment (Thailand – Vietnam), said that SMEs in Thailand haveprepared for AEC 2015, including improving factories, building SMEbusiness clusters, SME Corporations and others.
Besides theopportunities for Vietnamese SMEs, the Thai expert warned thatVietnamese enterprises will encounter goods with high competitivenessand high quality as well as cheaper product flows in the AEC market.
As a result, several SMEs will lose their markets or go bankrupt.
Whilethe transfer of skilled labour will also be a concern, the VietnameseSMEs will need to improve technology, management and products, he said.
TheThai expert suggested that the Vietnamese government further developinfrastructure and logistics as well as offer loans for SMEs, andorganise seminars to support SMEs on manufacturing, management,products, labour and others.-VNA
