Hội nhập kinh tế quốc tế và tác động đối với nền kinh tế việt nam – cơ hội và thách thức e

Contents
Preface.....................................................................................................................................................2
1. The concept of international economic integration.............................................................................2
2. The effects of international economic integration to all countries......................................................4
2.1 Positive effects:.............................................................................................................................4
2.2 Disadvantages and Challenges:.....................................................................................................5
3. The concept of regional economic integration:...................................................................................7
3.1 Basic content of regional economic integration............................................................................7
3.2 The inevitable objectiveness of regional integration....................................................................8
3.3 Opportunities and challenges of countries in regional economic integration...............................8
3.3.1 Access to international market:..............................................................................................8
3.3.2 Attracting international investment:......................................................................................9
3.4 The challenges for countries in the regional economic integration..............................................9
3.4.1 Common challenges, regardless of the level of national development.................................9
3.4.2 Industrialized countries:......................................................................................................10
3.4.3 Developing countries:..........................................................................................................10
3.5 The institutions of the countries in the the regional economic integration.................................10
3.5.1 Regional Trading Agreement – RTA:..................................................................................10
3.5.2

Instituation to low level of regional integration :............................................................11

3.5.2.1 Free Trade Agreement or Free Trade Area – FTA………..……………….……………. 11
3.5.2.2 Customs Union……………………………………………………………………………..….. 11
3.5.2.3 Common Market…………………………………………………………………………..……. 11
3.5.3

Institution to high level of regional integration...............................................................11

3.5.3.1 Economic and Moneytary Union – EMU……………………………………….………

12

3.6 Opportunities and challenges of Vietnam and domestic enterprises in regional economic
integration
…………………………………………………………………………………. ….. 12
3.6.1 Marco scale..........................................................................................................................12
3.6.2 Micro Scale..........................................................................................................................17


4. Conclusion:........................................................................................................................................21

Preface
Globalization is the inevitable expression of the jump of productive forces by the
international division of labor occurs deeper on a global scale under the influence of
revolutionary science and technology accumulation concentration leads to the formation of
economic unity. The economic integration between countries affects the economies of
countries in particular and world in general. It is a great development of the world economy
has changed.The birth of organizations such as WTO, EU, ATA… and many other
development triangle brought by globalization.
According to the general trend of the world, Vietnam has been gradually trying to take
initiative international economic integration. This is not a temporary target task that vital to
the economy of Vietnam today as well as in the future. A country that goes against the general
trend of the world will soon become outdated and isolated country sooner or later and it also
rejected the international arena. Furthermore a developing country actively integrating into
the regional economy and the world is even more necessary than ever.

1. The concept of international economic integration
International economic integration is the process of attachment of organic economy of
a country with the world economy contributed to the exploitation of recourses in an effective
manner. Specifically, international economic integration is a process of active concurrent

execution of two things: on one hand, attached to the market economy and individual
countries to regional markets and the world through the efforts made to open the door to
international markets and promote the regional liberalization of the national economic and on
the other hand, join and contribute to the construction of regional and global economic
institutions.
Economic integration could be bilateral – that is between the two economies, or
regional – that is between groups of economies and multilateral – that is a worldwide scale as
what the world trade organization is heading for.


2. The effects of international economic integration to all countries
International integration is an evitable trend of the World, it is also the path of
development and it cannot be different for other countries in the era of globalization to join
international integration
2.1 Positive effects:
o

Help to expand the market to promote trade and other international economic
relations from which promoting growth and economic – social development.

o Create a force for economic restructuring, improving business and investment
environment from which improving efficiency and competitiveness of the economy,
of the products and enterprises at the same time, also increased the ability to attract
investment into the economy.
o

Help to improve the level of human resources and the national science and
technology through co-operation in education and training, siencetific research with
other countries, receive new technologies through direct investment and transfer of
technology from advanced countries.

o Increase opportunities for domestic enterprises to approach international market, credit
sources and other interantional partners.
o Create opportunities for individuals to benefit from goods and products as well as
variety of services, designs and quality with competitive prices to access and interact
more with the world from which having the opportunity to develop and find jobs both
domestically and internationally.
o Create conditions for policy maker to better grasp the situation and development trend
of the world from which can be worked out approriate policies for developing
countries and margininalized.


o Help to add more value and cultural advancement and civilization of the World,
enriching the national culture and promoting social progress.
o Create a driving force and condition comprehensive reforms towards contraction of
open society, democracy and legitimate state.
o Create conditions for individual country to find a suitably location in the international
order, greatly enhanced prestige and international position as well as the ability to
maintain security, peace and stability for development.
o Help to maintain peace and stability in the region and international to focus on the
development and opening up the possibility of coordinating efforts and resources of
the country to solve the issues of the common interests of the region and the World.
2.2 Disadvantages and Challenges:
o Increase the fierce competition caused many difficulties to enterprises and economic
sectors even bankrupt and caused many economic-social consequences.
o Increase dependency of national economies into the outside market and therefore make
the economy vulnerable to the vicissitudes of international market.
o

No equitable distribution of benefits and risk for the courtiers and different groups in

the society hence increasing the gap between rich and poor.

o

In the progress of integration, the developing countries face the risk of disadvantages
of economic restructuring naturally due to the incline of focusing on resource-intensive
and labor-intensive industries but having low added value. Therefore they could easily
become industrial waste yards and having low technologies, exhausted nature
resources and environment destruction.


o

Can create some challenges to state authority (as the annual tradition of independence
and sovereignty) and complexity of maintaining security and stability of the
developing countries.

o May increase the risk of national identity and traditional eroded before the “invasion”
of foreign cultures
o Could put all countries at rash of the growth of international terrorism situation,
smuggling, transnational crime, disease, illegal immigration….
Thus, integration both simultaneously brought the benefits and disadvantages to the
countries. However not every integration is full entitled naturally to all benefits and bear all
the disadvantages that mentioned above. The benefits and disadvantages, generally in the
form of potential and very different from individual countries due to differences of
conditions, circumstances and level of development… The exploitation of the benefit and the
limits of disadvantages as well as challenges depend on many factor of each country and
foremost the strategy, policy, integration measures and the implementation.
In fact, many countries have exploited very successfully opportunities and benefits of
integration to achieve the growth and development of high socio-economic stability for may

consecutive years, quickly got along with new industrial countries and made a respectable
international position while successfully handling the challenges of disadvantages and
integration process which is the case of South Korea, Taiwan, Hongkong, Singapore, China,
Malaysia, Mexico, Brazil…
Some countries, although still achieved many benefits from integration but do not
handling successfully the downside of this process hence it faces many difficulties and
challenges. It can mention to the case of Thailand, Africa, Philippines, Indonesia, Vietnam,
Greece, Portugal, and Spain… However, ultimately the benefits that most countries have
obtained form the integration process is greater than the price they pay for the negative effects


in term of economic growth and economic development. This explains why international
integration becomes policy options of most countries in the World today.

3. The concept of regional economic integration:
Regional economic integration is the same form as the global economic integration but has it
own characteristic as follows:
o Regional and the number of participants is less
o But the content of cooperation is more diverse,so the relationship is more binding than
the global integration
o Theoretically, regional economic integration conflicts with the global economic
integration because it can lead to discrimination between the regional economic
organizations with the rest of the world. But actually the regional economic integration
is a good supplement to the process of global economic integration.
3.1Basic content of regional economic integration
o Trade liberalization is often reduced trade barriers in more areas compared with the
global economic integration. Also combined with the certain extent of the contents of
financial liberalization and investment in the region.
o Close cooperation in various fields: economic, security - politics; culture - society
science – technology, education - training, resource protection, environmental

control…
o Formed a common market and eliminate most regional trade barriers, for example the
case of using common currency, closely coordinate the policy to enhance the
competitiveness of the entire region.
3.2 The inevitable objectiveness of regional integration
The institutional integration of regional economic growing very fast when globalization was
interrupted, especially after World War II to the end of the 1980s.During the development, the


contents and mode of regional cooperation included characteristics of discrimination has been
refined and abolish. In fact the organization of regional cooperation has become the bridge to
help developing (and poor) countries approaching to global economic integration more stably.
WTO has also accepted the regional trade agreements as a special exception (see the
interpretation of Article XXIV GATT agreements.1994). Based on that, the regional economic
integration has proved to be trend of development objectively.Today, the regional cooperation
has developed very strongly, extremely complicated intertwined and closely linked to the
relations of global economic integration.
3.3 Opportunities and challenges of countries in regional economic integration
In principle, the benefits from economic integration and globalization complement one
another. Hence the opportunity from two levels of regional economic integration and
globalization has interacted closely to create a more positive effect. We can see opportunities
that stand out from economic integration as follows:
3.3.1 Access to international market:
o The mutual market access between countries in the region is more easily than

global economic integration, due to conditions and route of integration is more
convenient through the establishment of good relation with a country, it can
reach the market of the whole region in which the country is a member.
o For industrialized countries: very easily won competitive advantages in the

market for industrial products and services in the region compared with the
competition from outside and has a stable supply of resources-intensive
products and labor from the developed countries in the region.
3.3.2 Attracting international investment:
o Mutual investment in the region is more convenient because of short distance,
similarity of weather, climate, culture; society ... Therefore, the expansion of
production of whole region is also easier, that allows the exploitation of


comparative advantages supporting between countries to positively reduce
production cost.
o Attract investment (FDI & FPI) from investors outside the region will increase,
due to the geographical connection, market and the policy making the potential
market is stronger, because market scale has included the whole region and in
particular, the invest environment of the area will become more attractive.
o For industrialized countries: easily access the investment into industries and
services with high added value by developing countries in the region.
o For developing countries: many opportunities to attract capital and technology
of industrialized countries in the region to promote industrialization and
modernization of the economy.
3.4 The challenges for countries in the regional economic integration
The interaction between the regional economic integration and global also shows both in
terms of challenges and difficulties. Difficulties arising from this level of integration will
inevitably cause strong negative effects on other levels of integration. Below are typical
challenges of the regional economic integration:
3.4.1 Common challenges, regardless of the level of national development
o The rapid spread of regional financial crises - currency increases the risk of
global economic crisis.
o If the coordination of economic policy having the domestic trend, it will
slow the overall development of the whole region.

3.4.2 Industrialized countries:
o Increase the burden of economic and technical assistance.
o The risk of invasion of the cheap labor.


o

Suffered the risk of commercial fraud and piracy of intellectual property ...
in relations with the developing countries of the region.

3.4.3 Developing countries:
o Weak crisis resistance, more affected severely, the ability to recover more
slowly.
o The risk of invasion of high-quality product lines from industrial countries.
o Due to less of choice of opportunities therefore in many cases only receive
outdated regional technology.Thus, environmental pollution and invasive
effects also harder than industrial countries ...
3.5 The institutions of the countries in the the regional economic integration
When participating in regional integration, the countries must also comply with the following
institutions and they are divided into:
3.5.1 Regional Trading Agreement – RTA:
o The main content is to liberalize trade, preferential treatment for imports in the
region than outside.
3.5.2 Maintain regional trade barriers, but lower tariffs and eliminate non-tariff
barriers
3.5.2 Instituation to low level of regional integration:
3.5.2.1 Free Trade Agreement or Free Trade Area – FTA:
 Liberalization & facilitation of trade (virtually eliminated regional trade
barriers) but no binding unified tariff barriers for external; coordinate the
favorable policy than Customs Union.

 Many cases of FTA formed between a large group with a more developed
country. In particular, the program may apply "early harvest" of tariffs
before completing the other objectives of the FTA.


3.5.2.2 Customs Union:
 Liberalization & facilitation of trade (virtually eliminated regional trade
barriers) unified the regional tariff barriers for goods imported from outside;
 Causing trade diversion and many problems arise when coordinating policy
among union members.
3.5.2.3 Common Market:
 Liberalization and trade facilitation as a customs union.
 Combined with financial liberalization and investment, enabling the
production factors (capital & labor) moved freely in the region.
 Common market transition towards the establishment of economic union
and monetary.
3.5.3 Institution to high level of regional integration
3.5.3.1 Economic and Moneytary Union – EMU:
 Basically, this is a common market that use a common currency for
members
 Unified economic policy and monetary policy (one central banks )
 The Union economic and monetary is a transitional step towards the
establishment of regional union.
3.6 Opportunities and challenges of Vietnam and domestic enterprises in regional
economic integration
Economic globalization has now become a common trend of the era that countries, nations
cannot be ignored. Globalization, Vietnam is not beyond the trend of trade liberalization.
Global economic integration is objective indispensability. The process of globalization has
affected the economy of the countries especially for Vietnamese enterprises while Vietnam
participates more deeply into the international economic integration.

3.6.1 Marco scale
The trend of regional economic integration movement has never stopped. In particular,
in the 90s of XX century, the establishment of a free trade area (FTA) was the most powerful
flare up after the failure of the Doha round of World Trade Organization (WTO).
Unable to upgrade soon multilateral trading system, countries step by step resources to
build regional integration on a smaller scale but more effectively. From 2001 to now, there
were around 400 bilateral and regional FTAs appeared to the scale and different
forms.Compared with the liberalization commitments under the WTO, the regional economic
integration usually level market opening strongly, deeply and much more radically. In
addition to the removal of tariff barriers and non-tariff, the FTA often offer liberalization
commitments in many areas such as trade and services, investment, and even willing to
cooperate on non-traditional areas in commercial systems such as labor standards,
environment ...
Vietnam approach and participate FTA very early. As soon as to be a member of
ASEAN in 1995, Vietnam has begun to make reduction of tariff according to tariff preferable
programs which are generally effective to establish a Free Trade Area ASEAN (CEPT /
AFTA) since 1996. Overcoming many challenges, very new in the early stages of integration,
Vietnam has implemented smoothly CEPT / AFTA. In 2006, Vietnam completed the CEPT /
AFTA for making the most tariff rates on the margin of 0-5%. The non-tariff barriers such as
quotas, permits, quality standards are gradually harmonized with the corresponding other
ASEAN economies. Thanks to a member of ASEAN, Vietnam is not only approach partners’
markets in a more convenient way but also have the opportunity to protect the domestic
production with a longer route. Since 2002, based on close connection with ASEAN, Vietnam
also gradually participate the FTA between ASEAN and many partners in the region. In 2004,
the Free Trade Area ASEAN - China (ACFTA) was established. In 2007, built Agreement
Free Trade Area ASEAN - Korea (AKFTA) was signed. In 2008, the Agreement on
Comprehensive Economic Partnership ASEAN - Japan (AJCEP) was signed with the aim of
building on the FTA in 2015. Free Trade Area ASEAN - India (AIFTA), Free Trade Area

ASEAN - Australia and New Zealand (AANZFTA) also turn established in 2009 with the
goal of eliminating all tariffs by 2020.
However, the participatory process of the FTA of our country has only a qualitative change
when Vietnam becomes a member of the World Trade Organization (WTO). We participate in
a fair way with the main aim of all negotiations is a matter of interest in trade relations and
investment. With the FTA partners, Vietnam has established itself as a reliable partner. The
FTA is not only done within the framework of ASEAN cooperation, which we ourselves have
chosen the right partner but can benefit the integration strategy of the country.In 2008, the
first bilateral FTA Vietnam's agreement on comprehensive economic partnership with Japan,
effected from October 2009. Currently, Vietnam is negotiating bilateral FTAs with Chile, to
negotiate with formal membership of the Agreement on Trans-Pacific Partnership (TPP). The
FTA ASEAN +3 (China, Japan, Korea), ASEAN +6 (plus India, Australia and New Zealand)
and a bilateral FTA with the Russian Federation, European Union and South Korea are also
reviewed seriously.
In all these FTA negotiations, the most important driving force of our country is always
attached with the goal of promoting the exportation of domestic goods. Perhaps, the interest
in exporting is also concerns about improving the production capacity of the economy.
However, considerations of the export interests also be considered from two perspectives are
short and long term.
In short term, concerns about export interests are the direct comparison of the relative
competitiveness with other goods between countries, especially countries in the region such
as Thailand, Indonesia, and Philippines with our country is very large. Like any other
countries in the region, Vietnam has participated partly in FTA because does not want to lose
the export advantage is that the motivation to establish FTAs with other partners. Currently,
the FTA partners of ASEAN and Vietnam are the countries of East Asia. This is an important
export market of our country with a turnover almost USD 35 billion, equivalent to 48% of
total exports. In fact, the most direct angle, export opportunities for specific items of our
country in the FTA, which Vietnam has also significantly involved, with Japan, 79% of our

agricultural exports will be 0% tax incentives. Average tariffs by FTA commitments dropped


from 8.1% to 4%.The most profitable items as fresh fruits and vegetables, coffee, tea, meat
and wood products. Fishery products have an average tariff decreased from 5.4% to 1.3%. As
for the industrial products, 100% tariffs on industrial goods achieved 0% in 2010. The most
profitable items are garments, footwear, chemicals, electricity and electronics. With Australia
and New Zealand market, although the market is protected by tariff rate is relatively low,
approximately 14% of Vietnam's exports (mainly apparel, footwear and some metal products)
being subject to tariffs from 7 to 100% will be reduced significantly from 2013. 97% of
Vietnam's exports to Australia will have a tariff 0% in 2013 and Vietnam's exports to Australia
will have a tariff 0% in 2020. Similarly, 44% of Vietnam's exports to New Zealand are subject
to the tax rate from 7 to 80%. By 2013, 90% of exports from Vietnam to New Zealand will
have 0% tariff protection and 100% of our exports to New Zealand with the 0% protection in
2020. With the Indian market, 72% of Vietnam's exports to India will be entitled to 0% from
2016. The commodities are enjoying the most is electronic, textile, chemicals and some
machinery and equipment. Particularly items such as coffee and tea tax reduction schedule
will be lower than tax rates that Indian applies to other countries. The Chinese market, Korea
essentially has applied no import duties to goods exported from Vietnam.
In the long term the picture of export interests are often be seen through the factors that
affect the goal of forming the competitiveness of the country in the future. The basis
identified export potential benefits of Vietnam's ability to restructure the country's exports to
joining the FTA in the region. So far, the establishment of FTAs with major economies and
most dynamic in the region such as China, India, Korea, Japan and Australia has brought
greater opportunities to Vietnamese enterprises.
From 2004 to 2010, bilateral turnover of Vietnam and other ASEAN and East Asian
partners has increased from 32 billion to $ 82 billion, it is almost 270%. Annual growth rate is
28%. In particular, the proportion of the country's trade partners in ASEAN and East Asia
region is 53% of the total trade turnover of Vietnam, if added three partners are Australia,
New Zealand and India in the ASEAN +6 this figure is 56%. Trade relations between Vietnam

and other East Asian countries are growing at high speed. It can be said to participate in FTA


with ASEAN, China, India, Japan, Australia, New Zealand, our country has the opportunity
to access and exploit giant market which accounted for more than 50% of the population and
the GDP world, opening up export potential.
According to the researchers about the feasibility of the FTA in East Asia including
ASEAN, China, Japan and South Korea, Free trade area in East Asia (EAFTA) is expected to
be a the largest free trade area in the world of scale consumers and it will be 3st World GDP,
and also will form a huge market with total consumer of alomots 2 billion and closed to 3,000
billion dollars in GDP value. With the dynamic and sensitivity of the economy in this region,
East Asia FTA will influence to economic and trade interests of each country, including
Vietnam. According to this study, once completed the East Asian FTA, the total GDP of East
Asian countries will increase to 1.2% and economic welfare to 104.6 billion USD.
Particularly for Vietnam, East Asia FTA is expected to bring 2.83% of GDP growth and
benefits of commercial development would reach 3.029 billion USD. This is a very
significant number of commercial benefits of our country.
Unlike short-term export interests, direct, benefits in the long term export depends on
the change in the structure of exports under the influence of trade flows and investment.
Currently, the export structure of our country is very monotonous, value added is relatively
low. 85% of export turnover of Vietnam is still a crude oil products, agriculture, forestry,
fisheries, minerals and textiles. These are items that are strong due to the advantage of
resources and labor but low added value, economic benefits are not high, lack of
sustainability. The structure of trade with East Asian countries reflects the association industry
is not high. The direct contribution of the country's manufacturing of supply chain value to
the region-wide is very limited. Recently, a number of export items have higher levels
increased such as electricity, electronics, plastics; wire began to appear but not significant
proportion. This situation will only improve until a new equilibrium is established in the long
term and when or country participates deeper in regional industry integration, leading to an
overall structural transformation of the economy towards. Geographical proximity, economic

and political relations political between our country and partners in East Asia are one of the
important factors that determine the quality of economic development of our country.


Along with the expansion of the FTA within the frame work of ASEAN, the export
interests of our country will be promoted more strongly by the bilateral FTA that was initiated
or actively participate, such as the bilateral FTA between Vietnam – EU, bilateral FTA
between Vietnam - Russia or Agreement on economic partnership through Pacific (TPP).The
establishment of the FTA with the EU, the United States and Russia will complete the chain
of free-trade area, which Vietnam joined the partnership in the world economy. In particular,
the United States is the largest export market of Vietnam with a turnover of nearly 12 billion
USD; EU is the market's No. 2 exporter of our country with a turnover of 10 billion USD.
These two markets have the best export growth, about 400% within 7 years from 2003 to
2010. This is also a market that Vietnam maintains a stable state export surplus. For Russia,
though trade is not high as expected, but Russia has always been a traditional export market
and a lot of potential. The establishment of FTAs with these markets will be a big boost for
Vietnam's trade. The initiation of the business is the determining factor to the success of
economic integration policies of the country. In recent years, it is worth noting that the
businesses of Vietnam have expressed interest, make better use of the advantages that FTA
offers. In 2010, nearly 12% of Vietnam's exports to ASEAN have tax incentives, up from 6%
in 2005. 21.7% of our exports are tax incentives of China, up from 6.3% in 2007. In
particular, up to 79% of Vietnam's exports enjoy preferential tax from Korea.With Japan,
although we just carrying on the new FTA, 28% of our export commodities already enjoyed
preferential tax of this country.
But trade is also diverted a new challenge for the FTA process. The fact that some
ASEAN countries to participate in many FTAs with other countries outside the region. It also
creates the risk of adverse trade diverted to Vietnam when the trade was distributed by the
FTA strongly outward. Not only that, the FTA also is built with other forms of cooperation.
For example, Japan negotiated an FTA with ASEAN, and then negotiates FTA with
Singapore, Philippines, and Thailand....

3.6.2 Micro Scale
Obviously, the benefits of the FTA do not only depend on the role of the state-oriented,
but the more important is the participation of business community in Vietnam. When the
Vietnam get involved in the process of joining the economic organization, conducted a
signing of agreements on expanding the market for enterprises, but it is also the challenge of
Vietnamese enterprises in the next competition.
Join the FTA negotiations; the Government will determine the trade rules, including
rules on tariffs and other incentives. These problems particularly interested in business. In
fact, the implementation of the FTA is a business and they are also the beneficiaries.
However, an FTA is signed is synonymous with the market opening. Businesses will lose
their home market if they cannot improve their competitiveness.
The FTA agreement was aimed at the elimination of barriers to trade and investment.
Thus, competition for business is the most important challenges that the trade agreements
created. If strong enough, the pressure will lead to economic restructuring consistent with the
new environment. These challenges incurred, that are meaningful to administrators because
their mission is to look before the movement, thereby creating an environment that makes
restructuring more smooth, with low cost.
The enterprises has been gradually more initiative in taking advantage of tax incentives
in the FTA.The rate of preferential commodity is quite high compared to our partners in the
region and tend to increase over the year. In 2009, approximately 25% of exports from
Vietnam to take advantage of tax incentives in the FTA. Specifically, almost 12% of exports
to ASEAN have enjoyed tax incentives, increased sharply compared with 6% of 2005. For
China, this ratio is 22%. Specifically, almost 80% of Vietnam's exports to Korea have
benefited from tax incentives. With Japan, whether new deployment FTA but 28% of our
exports already enjoy preferential tariff when entering the local market. It can be seen, take
advantage of preferential rates are lower in partnership with the export structure similar to

Vietnam (as ASEAN, China) and higher in the partnership structure in addition to Vietnamese
exports South (including South Korea, Japan).
International market opportunities will become increasingly open for business with
Vietnam the process of international economic integration. Practices years innovation has
proved this clearly. In the period 1996 - 2005, export turnover of Vietnam has grown strongly,
averaging 17.5 / year, export value has increased almost fivetimes from $ 7.2 billion (1996) to
32.2 billion USD (2005), making Vietnam to be the country with the commercial
development in the world average. And, since the Vietnam Trade Agreement - the United
States effective (January 12-2001), the export turnover of Vietnam to the United States has
increased more than 7 times, from 1.053 billion in 2001, up 6 , 5 billion USD in 2005.
Enterprises have access to cheaper imported inputs that will facilitate reduced costs
and increased competitiveness. In terms of State for the protection of an industry will lead to
price of goods of that sector is higher than the market and thus the related sectors, particularly
those sectors of industry use products covered household production as raw materials will
bear the major cost inputs. But thanks to the abolition of barriers to flows of goods, services,
capital, ... prices of inputs of production processes, business in the competitive conditions will
tend to decrease due to / or reduce the cost of imports.
Therefore trade liberalization contributes to reduce costs and increase competitiveness
of goods and services of enterprises. Free trade also enables enterprises to reduce transaction
costs and trading by the general principles is unified.
However, Vietnam's enterprises are mostly small and medium businesses, not large
scale of production, lack of capital, technology has not improved ... so low quality goods, but
prices are high.In addition to many enterprises to become familiar with "arms of protection"
to the passive state with market economy. Therefore improving competitiveness is the biggest
challenge for Vietnamese enterprises.
The Vietnamese enterprises need to understand and creatively apply new scientific
achievements into production and business processes: innovative line of technology will help
enterprises reduce the input costs from which lowering the cost of product but with high
quality. The progress of science and technology also helps businesses reduce the number of

employees directly engaged in production, leading to reduced labor and higher wages for
workers.
Businesses should regularly follow market survey of market demand; determine the
supply and demand to production plan. By now there are still enterprises continuing to
produce products with low added value, while market demand has been shifted. To capture
the trend of the market, enterprises can organize drives marketing and advertising products to
consumers. Participate in international fairs in the region and the world to survey the needs of
consumers, as well as promote and looking for investment partners or agents. The strategy of
the enterprise should have the long sight to catch up with the changing market trends of the
world and regions.
Businesses must also respect opinions on financial management. The financial
institutions should be strengthened and having modern technology strong enough to compete
with financial services to foreign enterprises and domestic investors are not looking for
foreign business
Another important issue is that enterprises need to improve skills of workers.
Enterprises must create conditions for workers to access modern technology, organize
professional training classes. Take advantage of opportunities of technology transfer of the
member countries in regional economic union ... to exchange experts, organizing short
courses for workers with direct teaching of foreign profession or send key staff to foreign
countries to study.
Currently in the integration trend of continuous development, technology informatio
also contribute significant part in the process. In the trend of global integration, electronic
contract signing growing gradually. A typical example can be seen more and more difficult
markets such as Korea, Japan, and Hongkong want to purchase Vietnam rice. But to penetrate
this market, enterprises must know the electronic procurement, trading floor ... so the
Vietnamese enterprises need to grasp the skills of electronic procurement. This is so new to
Vietnamese enterprises because to date Vietnamese enterprises only bid directly, never

participating in electronic procurement and electronic bidding hence they do not know how.
Thus an opportunity for Vietnamese rice exporters to these countries has been reduced.
Enterprises need to Vietnam active in: find out the commitments of tariffs, rules of
origin, the regulations on hygiene, quarantine and other technical regulations, market
research, improving quality, value and responsibility for prestige products. From the
management agencies side, should set a goal to support enterprises to participate more deeply
into the value chain of the region and global.
4. Conclusion:
In summary, openness, integration and globalization is an objective trend, the
inevitable rule in the development of world economy. International economic integration is
profoundly affected to the economy of all countries. International economic integration
brought tremendous growth opportunities to Vietnamese enterprises, but also put the
enterprises at challenges and difficulties which are not trivial. Want a strong economy
Vietnam need to have strong enterprises, more competitive product with the world's goods. It
requires Vietnamese enterprises to realize a full and deep to take the appropriate solutions in
order to take advantage of opportunities, overcome challenges, turning challenges into
opportunities for growth, renewal of technology, improve competitiveness to stand in the
process of international economic integration. Strictly comply with Politburo's Resolution on
the international economic integration to boost industrialization, modernization-oriented
socialism.