Video Conference to tackle challenges from ASEAN Economic Community

Assoc.Prof.Dr. Nguyen Hong Son (second, from the left) participated in the Video Conference
On 22nd January 2015, the Video Conference entitled “Tackling challenges from ASEAN Economic Community (AEC)” was held by the E-government Portal. Assoc.Prof.Dr. Nguyen Hong Son - Rector of VNU University of Economics and Business participated in this Video Conference as an economic expert.

ASEAN Economic Community will be established by 2015 in order to develop a single market and production base for member nations, together with free flow of goods, services, investment and skilled labors. Four “pillars” of AEC included a single market and production base; a competitive economic region; equitable economic development; and integration into the global economy.

Together with opportunities, Vietnam also faced with variety of challenges such as goods and services imported from ASEAN countries with diversity of models, good quality, highly qualified technical labors; lots of trade services with low prices… If Vietnam’s goods and services are not innovated to enhance the competitiveness, Vietnam will potentially become a consuming market of goods for other countries in the region.

Participating in AEC, Vietnam is said to be well-prepared for integration based on ASEAN Scorecard. Talking about Vietnam’s preparation for participating in AEC, Assoc.Prof.Dr. Nguyen Hong Son stated that according to the 10-point scale, the macro preparation is over 5 points, meanwhile the enterprises’ preparation is just under 5 points.

Assoc.Prof.Dr. Nguyen Hong Son stated, “according to our assessment, agencies, Ministry of Trade and Industry, Ministry of Foreign Affairs and Ministry of Planning and Investment have actively supported enterprises to conduct trade promotions, investment and market access. However, during the preparation for integration, the coordination of ministries, branches and localities has not yet been smooth”.

Assoc.Prof.Dr. Nguyen Hong Son said that although it is quite late, it is necessary to propaganda and warn the enterprises to be clearly aware of challenges ahead as well as remind them of imminent integration. Joining AEC will help Vietnam promote the innovation in the country, especially complete the economic institution and international trade and commercial policies in the new context as well as promote enterprises to enhance their competiveness. “Great competiveness will create opportunities for enterprises’ community to change their awareness; if they prepare well, they can strongly integrate”, Assoc.Prof.Dr. Nguyen Hong Son stated.

Valuing the opportunities and challenges to join AEC, Assoc.Prof.Dr. Nguyen Hong Son said that the goods, services and technology of ASEAN countries have higher quality than those in the nation. Vietnam has fewer experiences and the enterprises’ readiness to integration is still low; enterprises, especially small and medium sized ones in Vietnam have been trying their best to overcome all difficulties and challenges arising from instability of macro economy in previous years. The goods and consuming sectors are most under competiveness. For instance, currently some Thai enterprises have been approaching Vietnam’s market; in the context that the middle-classed people in Vietnam have trends to use imported products from other countries. Additionally, the competiveness of high quality and skilled labor movement resulted in the brain drain…

Particularly, Assoc.Prof.Dr. Nguyen Hong Son also emphasized that such challenges were originated from ASEAN+ countries and he took a rubber business in Da Nang as an example that they are afraid of competing with other ASEAN+ countries rather than ASEAN ones. Therefore, the participation in AEC would bring Vietnam both opportunities and challenges.

Assoc.Prof.Dr. Nguyen Hong Son is an economic expert in the field of economic integration in ASEAN region and banking restructuring. His discussion section received many attentions from viewers and media/press agencies.

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