Since Vietnam joined the ASEAN Economic Community (AEC), it has promoted its role and sought opportunities to penetrate ASEAN markets.
Vietnamese businesses have greater opportunities to sell their products in other ASEAN countries, while competing domestically with imported products. They are crafting strategies to expand their market share inside and outside Vietnam.
The ASEAN Economic Community was formed in December, 2015. Following AEC commitments, Vietnam has cut 10,000 import tariff lines 0 to 5% in line with the ASEAN Trade in Goods Agreement (ATIGA). Vietnamese businesses have good opportunities now to export staple goods to AEC countries and partners like South Korea, Japan, and China.
But in 3 years Vietnamese businesses have not fully tapped the potential of ASEAN markets. The main reasons are unpersified products and distribution networks, uncompetitive prices, and loose collaboration with trade promotion agencies and trade counsellors. Businesses have not paid sufficient attention to local demand, customs, religions, or technical barriers in other countries.
The Vietnamese government has created an Action Plan for businesses to market their products abroad. Trade promotion agencies have connected with domestic and overseas businesses to share information and organize field trips for business leaders to explore overseas markets.
The Ministry of Industry and Trade has organized national trade promotion programs to help businesses find partners and penetrate foreign markets.