Hoang, confirmed the positive impact the Free Trade Agreements (FTAs)
have had on trade within the group.
Hoang, who is
also Vietnam ’s Minister of Industry and Trade, said in an interview
with the Vietnam News Agency (VNA) that ASEAN has signed FTAs with six
of its major partners, including China , the Republic of Korea ,
Japan , India and Australia and New Zealand .
The minister said the FTAs with these partners have helped boost
ASEAN’s exports, especially to China , RoK and Japan , which benefits
Vietnam immensely.
As a result, 27.8 percent
of Vietnam ’s export revenues to Japan receive preferential tariff
rates under the ASEAN-Japan Comprehensive Economic Partnership Agreement
(AJCEP). The rates under the free trade agreements between ASEAN and
its partners are 21 percent to China and 79 percent to the RoK.
The head of trade called on the 10-member bloc to work out a
long-term and consistent strategy to harmonise regulations of the
different FTA’s.
“ASEAN needs to tap its central
position in the region better and take full advantage of the
preferential tariffs offered by the FTAs,” said Hoang.
He rejected the argument that some Vietnamese exports face
difficulties due to the similarity in exports between Vietnam , ASEAN
and China . Hoang emphasised that it’s the economic structure which
will decide the level of cooperation.
“Up to 80
percent of Vietnam ’s imports from China and between 65 and 75
percent of its imports from ASEAN are from a third country as well as
the raw materials and equipment for production,” he explained.
“That’s why stepping up cooperation with China and ASEAN has
facilitated Vietnam ’s capacity to produce more and export more,” he
emphasised.
The minister described China as
Vietnam ’s leading trade and investment partner, with the potential for
enormous amounts of bilateral trade still lying ahead.
The 2008 bilateral trade revenue of 20.2 billion USD has made China Vietnam’s second biggest trading partner, after ASEAN.
The ASEAN-China Free Trade Agreement (ACFTA) has given Vietnamese
industries more chance of accessing materials and equipment for
production and export activities, said the minister.
The ACFTA, which asks China to cut 90 percent of all import tariffs
on Vietnamese products from 2010, would create ideal conditions for
Vietnamese imports to take a foothold in the world’s third largest
economy, especially products that Vietnam is strong in such as
agricultural produce, seafoods and minerals./.
