Vietnam in focus of ASEAN exports

Ever since the ASEAN Economic Community was established at the end of 2015, businesses in Vietnam have been gradually capitalising on the bloc’s import tariff cuts to swell their exports, helping to narrow down an on-going trade deficit between Vietnam and other ASEAN markets.
vietnam in focus of asean exports

Phan Minh Thong, chairman and general director of agricultural producer and exporter Phuc Sinh Corporation, is pleased at the firm’s good performance within the Southeast Asian market. “We have greatly benefited in the region thanks to slashed imported tariffs under regional commitments,” Thong told VIR.

In the first 10 months of the year, Phuc Sinh’s export turnover in Southeast Asia is about $3 million, up 20 per cent against 2017, and its import turnover is $5 million, up 50 per cent against last year.

According to the General Statistics Office (GSO), agricultural products are just among many that have boosted Vietnamese exports to Southeast Asia since the ASEAN Economic Community (AEC) was established.

The Ministry of Agriculture and Rural Development reported that in the first 10 months of 2018, Vietnam’s total export turnover of agro-forestry-aquatic products to the region hit $3.2 billion, up 34.4 per cent on-year, largely due to tariff cuts under the AEC.

Exports on the rise

The GSO noted that Southeast Asia is now Vietnam’s fourth-largest export market after the US, the EU, and China. Vietnam’s export turnover to the region surged from less than $1 billion in 1995 to $18.23 billion in 2015.

In 2016, Vietnam’s export turnover to Southeast Asian markets was $17.45 billion. However, the figure ascended to $21.7 billion last year. In the first 10 months of this year, the figure hit $20.6 billion, up 14.5 per cent on-year.

Vietnam’s exports to other nearby nations have risen significantly, through both overseas and domestic enterprises. This is due to slashed import tariffs, in addition to increased awareness about Southeast Asian markets, according to the Ministry of Industry and Trade (MoIT).

Key Vietnamese exports to Southeast Asia include farm produce, mobile phones, electronics, steel, machinery, vehicles, textiles and garments, and crude oil.

Nguyen Huu Truong, sales representative of Vietnamese-Chinese joint venture Garmexi Trade JSC based in the northern province of Bac Giang, told VIR that if his firm directly exports its garments from China to Southeast Asia, it would face an average import tax rate of 8-10 per cent. However, from Vietnam it enjoys a far lower import tax rate of merely 2-3 per cent, which will be removed completely by the end of the year.

In the first 10 months of 2018, Garmexi has exported to Malaysia and Singapore, with turnover increasing 20 per cent on-year. “We are planning to expand our exports to Thailand, Myanmar, the Philippines, and Indonesia in the future,” Truong said.

Many of Garmexi’s peers already export their products to these key Southeast Asian countries.

Tax slashes for the AEC

As one of the main pillars of the ASEAN, the AEC is aimed to create a tariff-free zone with 0 per cent tariffs on all traded goods and services, while setting a timetable for removal of non-tariff barriers regionwide. The ASEAN-6 nations - Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand - erased 99 per cent of their import tariff lines by 2010.

Meanwhile, Cambodia, Laos, Myanmar, and Vietnam have removed 90 per cent of their lines so far. And this year, another 7 per cent of tariffs will be removed by Vietnam.

These numbers mean 669 tariff lines will be reduced to zero by the end of 2018 for such products as automobiles and spare parts, motorbikes and parts, steel, wine, beer, plastics, and paper. The remaining 3 per cent, on sensitive agricultural items such as poultry, eggs, sectioned fruit, rice, processed meat, and sugar, must be reduced to 0 per cent after 2018.

Source: VIR

Related News

Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN- The Director General of the General Department of Vietnam Customs (GDVC), Mr Nguyen Van Tho, and the Commissioner of Korea Customs Service (KCS), Mr Ko Kwang Hyo, signed the Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) on the afternoon of December 24, at the GDVC’s headquarters.
Ho Chi Minh City: Diversifying forms of support for businesses exporting goods

Ho Chi Minh City: Diversifying forms of support for businesses exporting goods

VCN - To help businesses increase their exports, Ho Chi Minh City has many forms of support and connection between businesses and foreign partners to expand their markets.
Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

VCN - According to the General Department of Customs, Vietnam-China trade is expected to reach a new record of approximately US$200 billion in 2024. This milestone marks a record in bilateral trade that Vietnam has achieved with a partner.
The wood industry seizes opportunities amid changes in the export market

The wood industry seizes opportunities amid changes in the export market

VCN - According to Mr. Đỗ Xuân Lập (pictured), Chairman of the Vietnam Timber and Forest Products Association, changes in policies in the United States and globally have also opened up significant opportunities for Vietnam's wood industry.

Latest News

Party General Secretary receives Russian PM

Party General Secretary receives Russian PM

Việt Nam always remembers the valuable support and assistance that the people of the former Soviet Union and Russia today have given to Việt Nam during its past struggle as well as national building and safeguarding at present, said the Party chief.
Vietnamese economy on path to surpassing expectations: French paper

Vietnamese economy on path to surpassing expectations: French paper

The website said the banking sector, in particular, becomes a cornerstone of this economic resurgence, driving consumer credit growth and facilitating expansive economic opportunities.
Strategies to boost localisation rate is a must: experts

Strategies to boost localisation rate is a must: experts

Despite having 377 automobile enterprises, with nearly half being foreign direct investment (FDI) firms, the country relies heavily on imports, sourcing about 80 per cent of its production components, according to local experts.
Vietnamese economy on path to surpassing expectations: French paper

Vietnamese economy on path to surpassing expectations: French paper

The website said the banking sector, in particular, becomes a cornerstone of this economic resurgence, driving consumer credit growth and facilitating expansive economic opportunities.

More News

Government law-building session discusses seven drafts

Government law-building session discusses seven drafts

Prime Minister Phạm Minh Chính highlighted the importance of institution building and perfection to smooth resources for development.
The bright prospects of Việt Nam

The bright prospects of Việt Nam's asset management industry

Việt Nam boasts 19,400 US dollar millionaires - a 98 per cent increase over the past decade.
Việt Nam needs policies to develop national enterprises

Việt Nam needs policies to develop national enterprises

The national enterprises contribute to innovating the growth economic model, improving the Vietnamese brand value and promoting participation of Vietnamese enterprises in the global value chain.
Deputy PM urges specific roadmap for EV shift, as air pollution worsens

Deputy PM urges specific roadmap for EV shift, as air pollution worsens

Efforts must be made to increase investment in green public transportation, establish convenient public transport routes and stations, and develop traffic flow plans for personal vehicles based on pollution levels in different areas.
Vietnam PMI stands at 49.8 in December

Vietnam PMI stands at 49.8 in December

While the total number of new business continued to rise, new export orders decreased for the second month running.
Việt Nam on track to become top tourist destination in the digital age

Việt Nam on track to become top tourist destination in the digital age

The Singaporean website opengovasia.com has published an article stating that Việt Nam is creating an ideal environment for a thriving digital ecosystem and technological advancements in the tourism sector, thanks to its over 78 million internet users and 73.3 per cent of the population active on social media.
PM Chính calls for optimal plan to streamline and restructure organisational apparatuses

PM Chính calls for optimal plan to streamline and restructure organisational apparatuses

Prime Minister Phạm Minh Chính emphasised that the restructuring of the organisational apparatus must adhere to the principles of efficiency and effectiveness.
Anti-wastefulness a key, urgent task for 2025: Party chief

Anti-wastefulness a key, urgent task for 2025: Party chief

The leader pointed to the need that the fight against corruption, wastefulness and negative phenomena should not impede socio-economic development or enable the abuse of anti-corruption efforts for personal gain.
Affirming Việt Nam’s standing in the flow of the era

Affirming Việt Nam’s standing in the flow of the era

On the occasion of New Year 2025, State President Lương Cường gave an interview to the Vietnam News Agency (VNA).
Read More

Your care

Latest Most read
Party General Secretary receives Russian PM

Party General Secretary receives Russian PM

Việt Nam always remembers the valuable support and assistance that the people of the former Soviet Union and Russia today have given to Việt Nam during its past struggle as well as national building and safeguarding at present, said the Party chief.
Vietnamese economy on path to surpassing expectations: French paper

Vietnamese economy on path to surpassing expectations: French paper

The website said the banking sector, in particular, becomes a cornerstone of this economic resurgence, driving consumer credit growth and facilitating expansive economic opportunities.
Strategies to boost localisation rate is a must: experts

Strategies to boost localisation rate is a must: experts

Despite having 377 automobile enterprises, with nearly half being foreign direct investment (FDI) firms, the country relies heavily on imports, sourcing about 80 per cent of its production components, according to local experts.
Vietnamese economy on path to surpassing expectations: French paper

Vietnamese economy on path to surpassing expectations: French paper

The website said the banking sector, in particular, becomes a cornerstone of this economic resurgence, driving consumer credit growth and facilitating expansive economic opportunities.
Government law-building session discusses seven drafts

Government law-building session discusses seven drafts

Prime Minister Phạm Minh Chính highlighted the importance of institution building and perfection to smooth resources for development.
Mobile Version