Vietnam Enterprises Ready to Join ASEAN Economic Community?SME Survey 2015 June 2015

ASEAN Economic Community?

Table of Content

Introduction

Content

Introduction

Methodology

Vietnam SME and AEC

Government Supports

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Introduction

A single market and production base

A highly competitive economic region

ASEAN Economic Community in brief

ASEAN Economic Community – 10 Member States

A region of equitable economic development

A region fully integrated into the global economy

Key Characteristics

Opportunites offered by AEC

AEC could spur growth in Viet Nam’s GDP by 14.5 % and growth in jobs by an additional 10.5 % by 2025. (ILO, 2014)

AEC offers Vietnam Enterprise a competitive market of over 600 million people in ASEAN countries

Inputs for productions will be relativelycheaper thanks to tax incentives andpolicy for trade facilitation supports

Opportunites offered by AEC

Methodology

This research is done by MarketIntello to measure Vietnam enterprises’ awareness on the AEC and how they have prepared to join this playground.

Research’s objectives

This research encompasses

Total samples of 208 Small & Medium enterprises in five provinces of Vietnam

10%

11%

Hà Nội

Firm size

Small 64%

Industries

Food Processing

23%

61%10%

9%

10% Hà Nội

Bắc Ninh

Hồ Chí Minh

Bình Dương

Đồng Nai

Small

Medium

64%

36%Textile & Garment

39%Wooden Manufacturing

38%

SMEs awareness on AEC is limitted.

67%Total Micro Small Medium

SMEs’ awareness on AEC and its Action plan is litmitted

58%

42%

33%

67%

56%

44%

62%

38% 25%said they knew about the ASEAN Policy Blueprint/ Strategic Action Plan for SMEs

Yes No

Q.G4 Are you aware of the ASEAN Economic Community? Q.G3 Are you aware of the ASEAN Policy Blueprint/ Strategic Action Plan for SMEs

SME’s Awareness on AEC

More supports from Government are required.

The lack of knowledge on ASEAN Policy Blueprint/ Strategic Action Plan is said to come from little government supports for SMEs to prepare for AEC

95% 97% 98%

Yes No

8%5% 3% 2%

92%95% 97% 98%

Q.G3 In 2012 – 2014, did your company receive government support?

5% 3% 2%

Support for participation in events in countries abroad

Support for organizing meetings with potential

partners

Provision of financial support Assistance in business expansion abroad through

your country's bilateral agreements

0%

Provision of financial support

17%Provision of financial support83%Provision of financial support

Central State/City Local

Financial provision is main support from the government

13%

10%

Assistance in

Support for participation in events in countries

abroad

Support for organizing

meetings with potential partners

support

44%

50%

Support for participation in events in countries abroad

Support for organizing meetings with potential

partners

38%

50%

Support for participation in events in countries abroad

Support for organizing meetings with potential partners

0%

Assistance in business

expansion abroad

through your country's bilateral …

50%

Assistance in business expansion abroad through

your country's bilateral agreements

0%Assistance in business expansion abroad

through your country's bilateral agreements

Q.G3 If yes, did your company receive government support from central, state/city or local?

Enterprise expects ACE will open attractive market for exporting.

The current cooperation between Vietnamese SMEs and othercompanies in ASEAN countries is not high

Only 15% 59.38%Only 15%SMEs have business activities with other firms in the region.

Micro: 0%

Small: 12%

Medium: 23%

40.63%

0%3.13%

Import Export Investment Other

Q.G1 Has your firm do business with any company in other ASEAN countries?

23%

Q.G1.1 If yes, what is your business relationship?

Main business activities with firms in the region

0%

Competition in

Greater access to

intermediate…21%

Competition in

Greater access to

intermediate…

69%

Competition in

Greater access to

intermediate…

Increase No change Decrease

Most of enterprises are aware that they will have more benefits from AEC

60%

12%

7%

7%

Import cost

Profits

Competition in local

market

Competition in foreign market

12%

12%

21%

17%

Import cost

Profits

Competition in local

market

Competition in foreign market

10%

74%

69%

62%

Import cost

Profits

Competition in local

market

Competition in foreign market

17%

2%

Domesticsales

Export sales

33%

21%

Domesticsales

Export sales

45%

67%

Domesticsales

Export sales

Q.G6 How has the AEC affected your business?

13

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