Export to ASEAN: Medium Prospect

The Asia-Pacific Department under the Ministry of Trade forecasted that the export of Vietnamese commodities to ASEAN countries in the coming years will grow at medium rate, not as high as to Northeast Asian nations. In ASEAN group, Singapore is always the number one market of Vietnam.

For many years, Singapore has applied free trade policies and up to 96 per cent of goods in and out Singapore are free of taxes. Hence, for many years, Singapore is a traditional intermediary market of Vietnamese exported commodities to the world.

However, to boost Vietnamese exports to Singapore in the coming time, Vietnam needs to set up showrooms to introduce its commodities in this country because many international merchants usually transit it. As for Thailand, Vietnam was estimated to earn US$950 million from its shipments to this country in 2006 and US$1.15 billion in 2007. Vietnamese farm produces hardly penetrate the Thai market because it also produces similar products as Vietnam. Vietnam and Thailand are building a rice-export regulation mechanism to avoid loss-making competition on the world market. Major exports of Vietnam to Thailand were computer and electronic parts, worth US$294 million, followed by crude oil with US$192 million.