ASEAN strength to be built on with trade reforms
Vietnam and ASEAN member states are jointly deploying measures to boost the region’s economy, with a focus laid on upgrading a regional agreement on trade in goods.
ASEAN ministers last month introduced over a dozen priority economic deliverables in various sectors, embracing agriculture, tourism, energy, intellectual property, and digital transformation, as well as initiatives to strengthen supply chain and narrow the development gap among ASEAN member states.
When it comes to trade, ministers have agreed to further opening markets to ensure food security and strengthen the resilience and sustainability of the regional supply chain. They will also build foundations for intra-bloc trade facilitation to support supply chain connectivity, as well as utilising digital technology and commerce to support businesses.
Once the activities are implemented, Vietnam’s trade ties with other regional nations could improve. Last year, Vietnam’s total two-way trade with regional nations hit $73.7 billion, with the country suffering from an $8.3 billion trade deficit. Vietnam’s export turnover from ASEAN member states sat at $32.7 billion, down 4.1 per cent on-year,
and the country’s import turnover reached $41 billion, down 13.3 per cent on-year.
In the first three months of 2024, bilateral trade hit $20 billion, with Vietnam’s exports of $8.9 billion (up 9.5 per cent), and imports of $11.1 billion (up 9.8 per cent), meaning a trade deficit of $2.2 billion. ASEAN is Vietnam’s fourth-largest export and third-largest import market.
It is expected that this year, representatives from the Ministry of Industry and Trade and the Ministry of Planning and Investment will continue working with peers from the other nine ASEAN member states to discuss a new version of the ASEAN Trade in Goods Agreement (ATIGA).
The updated version will cover tariff liberalisation, rules of origin, non-tariff measures, trade facilitation, customs, technical regulations and conformity assessment procedures, sanitary and phytosanitary measures, and trade remedy measures.
The EU-ASEAN Business Council (EABC) has suggested that regarding trade liberalisation under the ATIGA, specific measures should be explicitly included on the tariff-free treatment of reused, recycled, repaired, and remanufactured goods to speed up movement to a circular economy in ASEAN.
“Remaining tariffs on some goods in some member states should be further eliminated to bring the
ATIGA on par with other agreements that have been entered into subsequently,” the EABC said.
In another case, in the chapter on trade facilitation, it is recommended that improvements should include specific and enforceable deadlines for the further expansion of the ASEAN Single Window to include all documentation needed for the import or export of goods.
The ASEAN Secretariat has commended Vietnam’s investment facilitation, which will help attract more investment both inside and outside ASEAN. “Vietnam’s government has continued to reform and take steps to further improve the country’s investment environment, including implementing resolutions and regulatory directives on strengthening information provision, simplifying processes and reducing administrative requirements,” the secretariat stated.
Denny Abdi, Ambassador of Indonesia to Vietnam, said that the two nations share priorities for cooperation in agriculture, fisheries, hightech industries, renewable energy, and digital economy.
“Indonesia and Vietnam are in a very similar situation: rapid socioeconomic growth driven by its youth, and a vast potential of human and natural resources,” Abdi said. “To ensure these advantages translate into tangible benefits, it is fundamental to collaborate in developing and connecting our resources. This means promoting investment in education, research, and innovation.”
Jaya Ratnam, Singapore’s Ambassador to Vietnam, also said that Singapore and Vietnam are working on bringing their economic cooperation to an even higher level. “The Vietnam-Singapore Connectivity Framework first launched in 2006 has been upgraded this year to include cooperation in energy, sustainability, and innovation. Secondly, we will launch the first annual meeting of our prime ministers, in a format that will enable high-level oversight and direction for our cooperation.”n