Fostering Vietnam - ASEAN Trade Ties

In past years, the bilateral trade between Vietnam and other members of ASEAN has gained positive accomplishments. According to the statistics of the General Department of Customs, in recent years, member countries of ASEAN have always been the biggest trade partners of Vietnam with the two-way trade value growing 25.9 percent per year in 2005-2008 period, during which trade value increased continuously over years, and 13.3 percent per year in 2005-2009 period. Particularly, in 2005, Vietnam-ASEAN total export and import turnover was just US$14.91 billion, two times less than 2008 with US$29.77 billion. In 2009, due to impacts of the global economic crisis, total trade value between Vietnam and all ASEAN members reduced considerably to just US$22.41 billion, decreasing nearly by 25 percent in comparison with that of 2008.

 

ASEAN is the third largest export market, following the U.S and EU market. ASEAN is the second biggest exporter of Vietnam, just below China.

 

If the growth of export-import turnover is maintained at average approximately 26 percent per year in 2005-2008 period, Vietnam-ASEAN total export-import turnover in 2010 will reach US$28.2 billion in estimation, in which export turnover will be US$10.6 billion and import turnover will be US$17.6 billion. However, if the average growth is just 13.3 percent as in 2005-2009 period, trade turnover between Vietnam and member countries in ASEAN Free Trade Area (AFTA) will attain just US$25.4 billion, in which export turnover will be US$9.8 billion and that of import will be US$15.6 billion.

 

Vietnam has major trade relations with three markets: Singapore, Thailand and Malaysia. The statistics indicated that the total value of commodity exchanged with those three partners in 2009 accounted for 72 percent of Vietnam-ASEAN total export and import turnover, in which Singapore is always the largest trade market of Vietnamese enterprises, accounting for one-fourth of Vietnam’s export turnover to ASEAN. The second largest export market of Vietnamese enterprise among member countries of ASEAN is Malaysia. Nevertheless, crude oil, the main commodity those two countries import from Vietnam, accounted for a half of export turnover to them.

 

In the first months of 2010, Vietnam and ASEAN has obtained positive signals in trade. Vietnam’s value of commodity trading with this area in first quarter of 2010 rises faster than increase of the total export-import turnover, especially export. The most updated statistics of the General Department of Customs shows that the total export-import turnover between Vietnam and ASEAN in the first three months of 2010 is US$6.12 billion, increasing by 37 percent compared to the same period in 2009, accounting for 18.9 percent of the total export-import turnover, in which export turnover from Vietnam to ASEAN market is US$2.54 billion, going up by 26.5 percent and accounting for 17.6 percent of Vietnam’s total export turnover. Meanwhile, the total value of commodity Vietnam imports from ASEAN market is US$3.57 billion, increasing by 45.6percent and accounting for 20percent of the total import turnover. Then, Vietnam’s trade deficit with its largest market area in first quarter of 2010 exceeded US$1 billion.

 

It can be seen that over years, economic and trade co-operation   between Vietnam and ASEAN has gained optimistic results; however, they are still limited, not catching up with the potential of co-operation and development between two parties.

 

According to Vietnam Prime Minister Nguyen Tan Dung, to tighten relationship between Vietnam and ASEAN, as well as among member countries of ASEAN, the present essential requirement is to more practically and effectively improve Vietnam-ASEAN co-operation, pushing relationship between two sides up to a higher level, becoming a typical instance for relationship of ASEAN with partners in area. Following that, ASEAN and Vietnam should raise effort and resources in order to conduct agreement efficiently, as well as to promote multilateral and bilateral relationships between ASEAN member countries and Vietnam, supporting and co-operating to develop.