Vietnam and ASEAN: Should They Integrate?

Abstract

Abstract : The Socialist Republic of Vietnam's economic and trade growth appear to be linked to her accession into ASEAN and its trade liberalization policies. Despite Vietnam's compliance with the Common Effective Preferential Tariff (CEPT) Scheme in the ASEAN Free Trade Area (AFTA), Vietnam's use of non-tariff barriers conflicts with ASEAN policies. Vietnam uses non-tariff barriers to support its immature manufacturing businesses, protect its state-owned, agricultural industries and protect the health of her population. The author contends that these non-tariff barriers should be reduced and eventually eliminated upon acceptance of ASEAN nations' agreements of conformance and standards for products. The creation of a non-tariff barrier elimination schedule will allow Vietnam to demonstrate her continued commitment to ASEAN while also determining the timeline to influence her inefficient domestic industries that are currently supported by these non-tariff barriers. Finally, the author draws the conclusion between Vietnam's accession into ASEAN and the growth of the Gross Domestic Product (GDP) and trade.