This book analyses and evaluates the question, in how far the creation of the Asian Free Trade Area (AFTA) brought economic benefits to the ASEAN country Vietnam. To evaluate this question the impacts of AFTA on Vietnam’s trade and their foreign direct investment (FDI) are evaluated and in a further step the question analysed in how far AFTA can affect the government income revenues of Vietnam. For the analysis of AFTA’s impact on Vietnams’ trade, the trade structure of Vietnam will be analysed. In general it can be said that for Vietnam the accession to AFTA is a very important step in their transition process to a more market economy. Furthermore it is a major step in Vietnams’ integration in the world economy. Especially the access of Vietnamese firms to a huge market such as ASEAN seems to be very advantageous. In the case of foreign direct investments, the question is if AFTA is seen by foreign firms and investors as a positive factor which would lead to investments in Vietnam or if it does not change the situation or if it has even a negative impact on the FDI due to the reason that the industries are not protected anymore by the tariffs and quotas. A further question to analyse is the origin of the FDI, this means if the major part comes from the ASEAN countries or if it has also any effects on other countries. This book primarily targets researchers and readers interested in organisations and the Vietnamese economy.
Table of Contents
1. Introduction
2. Vietnam’s position in ASEAN
3. Vietnam’s Trade Liberalisation Schedule under CEPT
4. AFTA’s impact on ASEAN Economies
5. AFTA’s impact on Vietnam
5.1 Impacts of AFTA on Vietnam’s Trade
5.1.1 Direction of Trade
5.1.2 The Composition of Trade: ASEAN vs. Non-ASEAN
5.2 AFTA’s impact on Vietnams Trade
6. Effects of AFTA on the Foreign Direct Investment (FDI) in Vietnam
7. Impact on government revenues
8. Conclusion
Objectives and Scope
This study analyzes and evaluates the economic impact of the ASEAN Free Trade Area (AFTA) on Vietnam, specifically focusing on how the integration process influences national trade patterns, foreign direct investment (FDI) inflows, and government revenue structures.
- The role of Vietnam within the ASEAN economic bloc.
- Trade liberalization progress under the Common Effective Preferential Tariff (CEPT) scheme.
- Evaluation of trade competitiveness and regional export/import structures.
- The relationship between regional integration and FDI attraction.
- Assessment of potential fiscal consequences regarding government tax revenues.
Excerpt from the Book
1. Introduction
This project analyses and evaluates the question, in how far the creation of the Asian Free Trade Area (AFTA) brought economic benefits to the ASEAN country Vietnam. To evaluate this question the impacts of AFTA on Vietnam’s trade and their foreign direct investment are evaluated and in a further step the question ananlysed in how far AFTA can affect the government income revenues of Vietnam.
For the analysis of AFTA’s impact on Vietnams’ trade, the trade structure of Vietnam will be analysed.
In general it can be said that for Vietnam the accession to AFTA is a very important step in their transition process to a more market economy. Furthermore it is a major step in Vietnams’ integration in the world economy.
Especially the access of Vietnamese firms to a huge market such as ASEAN seems to be very advantageous.
In the case of foreign direct investments, the question is if AFTA is seen by foreign firms and investors as a positive factor which would lead to investments in Vietnam or if it does not change the situation or if it has even a negative impact on the FDI due to the reason that the industries are not protected anymore by the tariffs and quotas. A further question to analyse is the origin of the FDI, this means if the major part comes from the ASEAN countries or if it has also any effects on other countries.
Summary of Chapters
1. Introduction: Outlines the project’s scope, focusing on the evaluation of AFTA’s impact on Vietnam's trade, FDI, and government revenues.
2. Vietnam’s position in ASEAN: Provides an overview of Vietnam’s economic standing within the ASEAN region regarding population, GDP, and trade growth.
3. Vietnam’s Trade Liberalisation Schedule under CEPT: Discusses the Common Effective Preferential Tariff (CEPT) framework and Vietnam’s specific commitments and tariff reduction plans.
4. AFTA’s impact on ASEAN Economies: Reviews existing literature and empirical studies on the overall economic effects of regional integration on ASEAN members.
5. AFTA’s impact on Vietnam: Analyzes the substantial impact on Vietnam’s trade, including directional changes, composition, and firm competitiveness.
6. Effects of AFTA on the Foreign Direct Investment (FDI) in Vietnam: Investigates the relationship between AFTA membership and the inflow of foreign direct investment into Vietnam.
7. Impact on government revenues: Examines the potential fiscal implications, specifically how tariff reductions might influence government budget and tax income.
8. Conclusion: Summarizes the findings, suggesting that while the long-term effects are likely positive, immediate impacts are modest and dependent on domestic competitiveness.
Keywords
AFTA, ASEAN, Vietnam, Trade Liberalisation, CEPT, Foreign Direct Investment, FDI, Government Revenue, Tariff Reduction, Market Economy, Regional Integration, Economic Growth, Trade Structure, Exports, Imports
Frequently Asked Questions
What is the primary focus of this research paper?
The paper evaluates the economic impact of Vietnam's accession to the ASEAN Free Trade Area (AFTA), specifically looking at its effects on trade, FDI, and government revenue.
What are the central thematic areas of the study?
The study centers on trade liberalization under the CEPT framework, changes in trade structures, the dynamics of foreign direct investment, and fiscal impacts.
What is the main research question?
The core question is to what extent AFTA has brought economic benefits to Vietnam, especially in the context of its transition toward a market economy.
What scientific methods are utilized in this work?
The author employs a review of existing literature, empirical studies, and analysis of economic indicators, including trade and FDI flow data provided by international and governmental sources.
What is addressed in the main part of the report?
The main part covers detailed analyses of Vietnam's position in ASEAN, its trade liberalisation schedule, the impact of AFTA on trade volume and FDI, and the resulting effects on government tax revenues.
Which keywords characterize this document?
Key terms include AFTA, ASEAN, Vietnam, Trade Liberalisation, CEPT, Foreign Direct Investment, and Government Revenue.
How does the author view the long-term impact of AFTA on Vietnam?
The author concludes that AFTA will likely have positive long-term effects by stimulating more efficient and dynamic firms, despite some initial modest results.
What role does Singapore play in Vietnam's trade context according to the report?
Singapore acts as a dominant regional trading partner and a key hub for re-exports, significantly influencing Vietnam's regional trade figures.
- Quote paper
- MSc, Dipl.- Betriebswirt (FH), BA (Hons) Nima Pouyan (Author), 2006, AFTA's impact on Vietnam, Munich, GRIN Verlag, https://www.grin.com/document/55337
