Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >>Economy  >> SMEs urged to get ready for ASEAN EC
NEW UPDATES Asean Affairs  12 November 2014  

SMEs urged to get ready for ASEAN EC

 Vietnamese enterprises, especially small- and medium-sized companies, have been repeatedly warned to prepare for both the challenges and opportunities when the ASEAN Economic Community is established next year.

During a recent forum organised yesterday at HCM City University of Technology, local and foreign experts have expressed concern about the preparation of Vietnamese enterprises.

Le Dang Doanh, a renowed economic expert, said the GDP of Viet Nam would increase 13 percent within five years and the annual growth rate of the GDP would be two per cent after AEC begins next year.

With AEC, the market for Vietnamese enterprises will expand dramatically up to 600 million people, offering larger export markets for agricultural products both in and outside ASEAN, especially products with low production costs.

Under the AEC, input costs for production will be much lower for local enterprises.

At the forum, AEC 2015: Opportunities and Challenges for Vietnamese Enterprises, Doanh predicted that the flow of skilled Vietnamese workers to neighbouring countries with higher wages could cause serious issues for local companies.

The expert warned that Viet Nam will be one of four countries in ASEAN to become a good market for the other six ASEAN members.

"Seventy-three per cent of Vietnamese enterprises do not know about AEC and have not prepared, which shows the weakness of local enterprises, especially small- and medium-sized enterprises," Doanh said.

"Six countries are very eager for the AEC to start, while the other four countries (Cambodia, Laos, Myanmar, and Viet Nam) have not been very active in preparing for integration," he added.

Six other ASEAN members are eagerly awaiting the opportunity since they can expand markets and use labour and resources at lower prices in the four countries with less developed economies.

In 1993, the ASEAN Free Trade Area was established. ASEAN-6 including Singapore, Malaysia, Thailand, Philippines, Indonesia and Brunei have nearly completed the process of tariff reductions and non-tariff barriers, leaving a great deal of pressure for enterprises in the less developed countries.

Suchat Sawetkamon, director of research and economic development for Trade and Investment (Thailand – Viet Nam), said that SMEs in Thailand have prepared for AEC 2015, including improving factories, building SME business clusters, SME Corporations and others.

Besides the opportunities for Vietnamese SMEs, the Thai expert warned that Vietnamese enterprises will encounter goods with high competitiveness and high quality as well as cheaper product flows in the AEC market.

As a result, several SMEs will lose their markets or go bankrupt.

While the transfer of skilled labour will also be a concern, the Vietnamese SMEs will need to improve technology, management and products, he said.

The Thai expert suggested that the Vietnamese government further develop infrastructure and logistics as well as offer loans for SMEs, and organise seminars to support SMEs on manufacturing, management, products, labour and others. — VNS

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            November 12, 2014 Subsribe Now !
• SMEs urged to get ready for ASEAN EC Subcribe: Asean Affairs Global Magazine
• Aquino praised for good handling of PH economy
• Jokowi sets out infrastructure stall to court investors
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• As economic growth slows, BI’s monetary stance in spotlight
• Thaicom Q3 net profit down 12%, below forecast
Asean Analysis                    November 11, 2014

• Asean Analysis November 11, 2014
Myanmar’s Hsipaw in Northern Shan State becomes backpackers’ heaven
Advertise Your Brand

Asean Stock Watch    November 11, 2014
• Asean Stock Watch-November 11 , 2014
The Biweekly Update
• The Biweekly Update  October 31, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand