Illustrative image (Source: VNA)Hanoi (VNA) – Promoting intra-bloc trade and investment for acohesive and responsive Association of Southeast Asian Nations (ASEAN) is oneof the much-discussed topics among ASEAN officials, researchers, andpolicymakers.
ASEAN is one of the most dynamic regions in the world with an economic growthrate of 5.4 percent, higher than the world’s average of 4 percent, said AladdinD. Rillo, Deputy Secretary-General for the ASEAN Economic Community, ASEANSecretariat. He added that it is also the fifth largest global economy withgross domestic product (GDP) reaching about 3 trillion USD in 2018,
In terms of trade, ASEAN was the fourth largest economy in the world with atotal value of more than 700 billion USD.
Regarding foreign direct investment (FDI), FDI growth in ASEAN was about 4.4percent, much higher than other developing economies, making ASEAN the thirdlargest FDI recipient in the world, he said.
However, intra-bloc trade currently accounted for only 23 percent of the bloc'strade, which was relatively low compared to other regions, according to theASEAN Deputy Secretary-General.
The intensity of intra-bloc trade has also decreased significantly in recentyears, he added.
Saysana Sayakone, head of Laos’ Senior Officials for ASEAN (Lao SOM), saidintra-bloc cooperation potential is enormous. The bloc has put forth importantinitiatives to promote intra-bloc trade such as the ASEAN Free Trade Area in1992.
ASEAN is working towards multilateral trade agreements like the RegionalComprehensive Economic Partnership (RCEP) and economic deals with ASEAN 1partners (Australia, Canada, China, India, Japan, the Republic of Korea, NewZealand, Russia, the US, and the European Union), he added.
He noted that while tariff barriers have been reduced in ASEAN, non-tariffmeasures are on the rise, with over 9,840 such measures adopted so far. The Laoofficial said the intra-bloc trade can be improved by reducing policy andnon-tariff barriers.
Vo Chi Thanh, Chairman of the Vietnam National Committee for Pacific EconomicCooperation, said ASEAN countries are currently making every effort to overcomethese difficulties by promoting the ASEAN Single Window and RCEP.
In the foreseeable future, ASEAN should focus on services, logistics, digitaleconomy, and the creation of an ecosystem for startups, he said.
ASEAN countries also need to create a foundation for small-and medium-sizedenterprises, and make it easier for them to access finance, loans and humanresources, as well as help businesses to protect themselves againstfluctuations and attract foreign investment, he recommended.
Former Deputy Foreign Minister Pham Quang Vinh said in order to promoteintra-regional trade, it is necessary to consider trade diversity among membercountries.
ASEAN states share a lot of similarities, which should be the cooperationfoundation in the future, he added.
According to Vinh, ASEAN should look for fields with potentialin intra-bloc trade cooperation based on the mutual supplementary features ofASEAN economies./.
VNA
