AEC to bring both opportunities and challenges to Hanoi

The AEC would bring more chances for export enterprises in Hanoi with many advantages in tariffs and markets, including lower or zero tariffs, to expand the export market and reduce import value, said Hoa Huu Lan, economic expert from the Research Institute for Socio-Economic Development of Hanoi, said at a workshop organised to discuss the AEC and its impacts on the city's socio-economic development.

However, enterprises in the capital city would also face challenges from the AEC, including increased competition pressure, especially from import goods, competition in attracting investment in tourism against regional rivals, and an increase in trade defence measures such as rules of origin and localisation rates.

Meanwhile, the competitive advantage in the export price of Hanoi's enterprises is not high due to higher input prices, import price of raw materials, and transport cost, apart from electricity and fuel prices, he said.

Therefore, the authorities in the capital city should improve the competitive ability of the city's enterprises by completing the business environment, creating a support system for the enterprises in import and exports, and capital, apart from technology, equipment and workforce, Lan said.

The city should also modernise and synchronise trade and technical infrastructures, he said, while the enterprises should improve and promote co-operation among themselves for future development.

Speaking at the event, Vice Chairman of the municipal People's Committee Nguyen Ngoc Tuan said Hanoi should assert its role as a pioneer in promoting economic growth nationwide and contributing to the country's sustainable development target.

He said the municipal authorities will direct the relevant sectors to design appropriate policies and solutions as well, in order to make the best preparation for its joining the AEC.

Nguyen Thanh Cong, deputy director of the Research Institute for Socio-Economic Development in Hanoi stressed the need to create a connection between Hanoi and other localities, especially those in the Red River Delta, thus promoting their integration in the time ahead.

Sharing Cong's view, Deputy Chairwoman of the Hanoi Youth Entrepreneur Association and Chairwoman of the Vinh Phuc Export-Import and Production JSC, Nguyen Thi Lan Huong said Vietnamese enterprises will have a chance to assess themselves as they become a part of the global market, thus outlining suitable strategies for their development in the context of globalisation.

Huong said over the past years, the municipal authorities have had many policies supporting enterprises in trade activities and she hoped the city would continue to support technology.

In addition, economic experts from the National Economic University said at the workshop that Viet Nam joining to the AEC would bring opportunities for the property market in Viet Nam, especially Hanoi.

The Hanoi real estate market would attract more investment in housing and commercial and industrial property segments due to the large number of people from the Asean region coming to Hanoi for business and to work.

The experts said the city's authorities should have specific strategies to take advantage of being the capital city and also an economic centre of Viet Nam for developing its property market.

Meanwhile, property enterprises should prepare all conditions, including finance, workforce and technology, to grab the opportunity and develop their business.