Econ
Vietnam’s new import tariff for ASEAN come into effect
Vietnam’s new import tariff, part of the ASEAN Trade in Goods Agreement (ATIGA) for 2016-2018, has come into effect.
According to Vietnamese Ambassador to Thailand Nguyen Tat Thanh, Vietnamese businesses should pay more attention to ASEAN markets in order to make use of the advantages created by the establishment of the ASEAN Community.
The Ambassador said Vietnamese businesses have not paid proper attention to ASEAN markets in general and the Thai market in particular. On the contrary, Thai firms, from big ones to small- and medium-sized enterprises, are very interested in ASEAN markets, especially Vietnam.
He noted that while several Vietnamese localities have established twin relations or affiliations with Thai counterparts, their relations have focused on cooperation or investment but neglecting the trading of goods. Several trade promotion events that the embassy helped organize recently in Thailand have proved that there are many ways for Vietnamese goods to enter this market, which is a major one with 70 million people.
Ambassador to Indonesia Hoang Anh Tuan said following the conclusion of TPP negotiations, Indonesian investors are very interested in the Vietnamese market, as through Vietnam they can enter other markets of the Trans Pacific Partnership (TPP) agreement.
At the same time, the AEC framework facilitates trade and investment ties not only from Indonesia to Vietnam but also from Vietnam to Indonesia, the Ambassador said. According to Head of the Vietnamese delegation to ASEAN, Ambassador Nguyen Hoanh Nam, the formation of the ASEAN Community has brought about a new change for ASEAN member countries.
In order to make full use of the advantages created by the Community, member countries should create better linkages in production and services, he said. The Ambassador stressed that member countries must improve their investment environment to make ASEAN more attractive to outside investors.
Ambassador to Malaysia Pham Cao Phong observed that the ASEAN Economic Community (AEC) holds great potential, but it was formed at a time the region’s economy is suffering from many negative impacts and facing numerous challenges. Therefore, ASEAN countries should work together for development.
Vietnam and Malaysia should enhance economic ties on the basis of supplementing each other, in order to bring into play each country’s comparative advantages, he said. Decree No.129/2016/ND-CP, which was issued on September 1 and took effect the same day, states that the tariff is to be applied to goods directly transported from exporting countries into Vietnam.
The exporters must be ATIGA members, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand. Special treatment is also given to Vietnam, in case goods are imported from non-tariff zones into the domestic market.
Goods must also meet origin regulations, as stated in the agreement, and exporters are to have certificates of origin, in a form stipulated by the Ministry of Industry and Trade. ATIGA officially came into effect in May 2010 after member countries signed it in Thailand in February 2009. The agreement aims at eliminating tariffs to foster trade among Southeast Asian nations, and support joint efforts to handle non-tariff barriers and promote cooperation regarding customs inside the bloc.
The Ministry of Finance said the participating countries were committed to following the roadmap: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand largely eliminated import taxes in 2010. Cambodia, Laos, Myanmar and Vietnam eliminated some 90 percent of their tariff lines in 2015, and 97 percent in 2018.
Vietnam already cut nearly 6,900 tariff lines, or 72 percent of all tariff lines, to zero percent in 2014. It slashed more than 1,700 other lines to zero percent in 2015, the Ministry of Finance said late last year. Further, it said the country would cut nearly 700 remaining tariff lines, mainly "sensitive commodities", to zero percent by 2018. Among these are automobiles and spare parts, vegetable oil, refrigerators, air-conditioners and dairy products.
The Ambassador said Vietnamese businesses have not paid proper attention to ASEAN markets in general and the Thai market in particular. On the contrary, Thai firms, from big ones to small- and medium-sized enterprises, are very interested in ASEAN markets, especially Vietnam.
He noted that while several Vietnamese localities have established twin relations or affiliations with Thai counterparts, their relations have focused on cooperation or investment but neglecting the trading of goods. Several trade promotion events that the embassy helped organize recently in Thailand have proved that there are many ways for Vietnamese goods to enter this market, which is a major one with 70 million people.
Ambassador to Indonesia Hoang Anh Tuan said following the conclusion of TPP negotiations, Indonesian investors are very interested in the Vietnamese market, as through Vietnam they can enter other markets of the Trans Pacific Partnership (TPP) agreement.
At the same time, the AEC framework facilitates trade and investment ties not only from Indonesia to Vietnam but also from Vietnam to Indonesia, the Ambassador said. According to Head of the Vietnamese delegation to ASEAN, Ambassador Nguyen Hoanh Nam, the formation of the ASEAN Community has brought about a new change for ASEAN member countries.
In order to make full use of the advantages created by the Community, member countries should create better linkages in production and services, he said. The Ambassador stressed that member countries must improve their investment environment to make ASEAN more attractive to outside investors.
Ambassador to Malaysia Pham Cao Phong observed that the ASEAN Economic Community (AEC) holds great potential, but it was formed at a time the region’s economy is suffering from many negative impacts and facing numerous challenges. Therefore, ASEAN countries should work together for development.
Vietnam and Malaysia should enhance economic ties on the basis of supplementing each other, in order to bring into play each country’s comparative advantages, he said. Decree No.129/2016/ND-CP, which was issued on September 1 and took effect the same day, states that the tariff is to be applied to goods directly transported from exporting countries into Vietnam.
The exporters must be ATIGA members, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand. Special treatment is also given to Vietnam, in case goods are imported from non-tariff zones into the domestic market.
Goods must also meet origin regulations, as stated in the agreement, and exporters are to have certificates of origin, in a form stipulated by the Ministry of Industry and Trade. ATIGA officially came into effect in May 2010 after member countries signed it in Thailand in February 2009. The agreement aims at eliminating tariffs to foster trade among Southeast Asian nations, and support joint efforts to handle non-tariff barriers and promote cooperation regarding customs inside the bloc.
The Ministry of Finance said the participating countries were committed to following the roadmap: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand largely eliminated import taxes in 2010. Cambodia, Laos, Myanmar and Vietnam eliminated some 90 percent of their tariff lines in 2015, and 97 percent in 2018.
Vietnam already cut nearly 6,900 tariff lines, or 72 percent of all tariff lines, to zero percent in 2014. It slashed more than 1,700 other lines to zero percent in 2015, the Ministry of Finance said late last year. Further, it said the country would cut nearly 700 remaining tariff lines, mainly "sensitive commodities", to zero percent by 2018. Among these are automobiles and spare parts, vegetable oil, refrigerators, air-conditioners and dairy products.
