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How ASEAN import duty cuts impact Vietnam economy? (24/4)
06/08/2010 - 144 Lượt xem
Vietnam has lowered import duties on over 10,000 products from ASEAN countries in accordance with the CEPT program for the last 3 months. According to the Ministry of Finance, the duty cuts have not caused so much change to domestic production as well as economic development.
In the 2006 – 2013 period, Vietnam will cut import duties on 10,283 products from ASEAN countries. Of which, 5,478 products will be subject to an import duty rate of 0% while the 10,283 others will be imposed rates of between 0% and 5%.
However, prices of products with reduced import duties have not gone down considerably. Forecast even says that prices of many products will increase sharply in the second quarter of this year. Prices of many sensitive products like electrics, electronics and building materials have lowered but not as expected. Some electronics products have witnessed price reduction as a result of company’s strategy but the import duty cuts. The reason here is that import turnover from ASEAN countries remains modest, accounting for just 20% - 25% of Vietnam’s total import value. Of which, only 9% - 10% is qualified for CEPT.
Experts say prices will not reduce at the rate of import duty reduction because not only import duty but also other factors like fees for transport, loading, distribution, customer services, etc decide price of a product. Moreover, not every product from ASEAN country will have lowered import duty.
Trade value between Vietnam and ASEAN countries will not increase sharply due to import duty cuts because these countries produce and export similar products. Another reason stems from difference in development between countries in the region while time for duty cut is not the same for every country, causing trading activities between ASEAN countries less hectic. Furthermore, with a long roadmap, domestic businesses have well prepared for import duty cuts.
With such positive results, Vietnam has gone further in the integration process with the target of WTO membership.
Source: VNECONOMY
