Businesses urged to get ready for AEC market
Businesses urged to get ready for AEC market
Vietnamese companies were advised to take the initiative in developing business strategies so they can prosper in the ASEAN Economic Community (AEC) market, expected to be effective in 2015.
When AEC becomes effective, local companies would be able to widen markets in ASEAN as well as other countries such as South Korea and Japan, but there would also be challenges, speakers said at a conference held yesterday in HCM City.
The conference, themed "Import-Export Coordination Solutions on the Threshold of ASEAN+", noted that export turnover to ASEAN in 2013 stood at US$18.5 billion, a year-on-year increase of nearly 7 per cent.
Speaking at the meeting, Huynh Van Minh, chairman of the HCM City Union of Business Association, said that growth in Vietnamese exports to this market had been unstable and the potential remained underdeveloped.
No product had shown continuous growth in export value, he said, adding that there were also risks of anti-dumping lawsuits.
Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's export-import department, pointed out that Vietnamese exports contained few high value-added products, and the country still had an underdeveloped support industry.
When AEC takes effect, Vietnamese companies will face strong pressure from big companies in regional countries, and as such, need to be more proactive when they develop their business plans, according to Hai.
Failure to meet demand for information on origin of products is another challenge for local companies. To improve competitiveness, companies were advised to exploit their strengths so they can take advantage of tax incentives under AEC.
Keeping up to date and forecasting changes in the world market were also advised.
In addition, the localisation rate of products and the support industry in the country must be improved.
Also speaking at the meeting, economist Vo Tri Thanh said that companies should better manage risks, such as buying insurance.
He also advised them to work together closely and invest and widen their business.
New technologies such as green technologies should be purchased, he said. AEC is ASEAN's goal for regional economic integration by 2015.
It envisages a single market and production base, and a highly competitive economic region with equitable economic development, fully integrated into the global economy.
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