The ASEAN market area has always been a potential market for Vietnam's exports, with its close geographical proximity as well as a large population and fast-growing economy. Therefore, businesses need to thoroughly understand this market to be able to take full advantage of the available advantages.

After 26 years since Vietnam joined ASEAN, ASEAN has always been an important trading partner of Vietnam. The trade relationship between Vietnam and the ASEAN market area has continuously developed over the years and achieved remarkable achievements. Up to till now, ASEAN is the fourth largest export market of Vietnamese enterprises, after the US, China and the European Union. In 2020, under the negative effects of the Covid-19 pandemic, Vietnam's import and export of goods with ASEAN reached 53.6 billion USD, down 6.8% compared to 2019.

However, by 2021, trade has recovered and regained its growth momentum. Trade turnover between Vietnam and ASEAN in the first 8 months of 2021 reached 46 billion USD, up to 35.2% over the same period in 2020 (higher than Vietnam's average import and export growth with the world - 27.5%) and up 19.8% over the same period in 2019 (when there was no Covid-19 epidemic).

The above achievement is the result of efforts to understand and exploit the advantages and opportunities that the ASEAN market area brings. Geographically, the ASEAN market is a market area with close geographical distance, helping businesses save freight costs, warehousing costs. Businesses also have a wide choice of shipping methods such as road, sea and air transport.

In terms of culture and tastes, the ASEAN market is a culturally unified region in diversity. Although each country has unique and diverse customs and practices, they all have an agricultural cultural background, so their lifestyles have close and similar features.

Regarding consumer tastes, Vietnamese goods meet the requirements of quality and price when exporting to ASEAN. Almost all of Vietnam's exports can consider ASEAN as a destination. Successful export to the ASEAN market will be the first step for Vietnamese goods to continue to penetrate other markets.

The ASEAN market is also a potential market area for Vietnamese businesses. With a population of more than 655 million people, of which more than 50% are of working age, the proportion of the population belonging to the middle class is increasing, the ASEAN market area has great potential for consumption, and has good absorption capacity.

Currently, most of the goods exported to this market are entitled to preferential tariff rates of 0% under the ASEAN Trade in Goods Agreement (ATIGA) or some special incentives under the Agreements/Agreements. Bilateral trade agreements with each country such as the Vietnam-Laos Trade Agreement, and the Agreement to promote bilateral trade between Vietnam and Cambodia.

In addition, in the coming time, ASEAN countries will accelerate the implementation of measures to recover the economy after Covid-19 such as commitments to open markets, ensure undisrupted supply chains, and facilitate trade. These are very favorable conditions for Vietnamese enterprises to take advantage of further exploiting the potential of this market area.

In the context of the complicated development of the Covid-19 epidemic in Asia, including ASEAN countries, in order to maintain the existing import and export business with the ASEAN market area and take advantage of opportunities to diversify. To diversify and expand markets in this region, the Asia-Africa Market Department, Ministry of Industry and Trade offers some notes for businesses looking to enter this market:

Firstly, businesses need to regularly and continuously stay updated on information on the policies and regulations of the host market, especially the requirements for import and export goods under the Covid19 prevention measures to. These regulations and requirements may change quickly and unexpectedly, depending on the evolution of the epidemic. To support businesses, in recent years, the Ministry of Industry and Trade has continuously implemented activities to disseminate information and guide businesses to access the market; Update new requirements of countries. Therefore, businesses can actively access this information at some from official information channels of the Ministry of Industry and Trade.

Secondly, enterprises need to actively verify partner information in the host country in many different ways to limit risks pertaining to contract performance and payment. In the context of the Covid-19 epidemic, the disruption of supply chains may partly affected the production activities of enterprises in other countries. In addition, the travel restriction limits the ability to physically authenticate partner information. Therefore, when exchanging and doing business transactions, businesses need to carefully learn information about partners such as information on legal status, source of goods, financial stability, etc. to avoid risks when cooperating. . Enterprises can contact the Vietnam Trade Office in the host country to ask for assistance in checking partner information before deciding to sign a contract or perform transactions.

Thirdly, due to the recent Covid-19 developments, some ASEAN countries have increased the application of trade barriers or trade remedies to support the recovery of domestic production and export activities during and after the pandemic. Businesses need to closely coordinate with state management agencies in case businesses are affected.

In order to avoid unexpected risks, enterprises also need to actively capture complete and accurate information to have a suitable production plan, and to have a plan to diversify markets, look for alternative markets,. Information on trade barriers and trade remedy cases is regularly posted on the communication channels of the Ministry of Industry and Trade as well as disseminated at activities guiding market access. The Ministry of Industry and Trade has been and will accompany businesses to solve cases and maximize the interests of businesses.

Fourth, businesses need to focus on diversifying partners and import-export markets. Especially due to the Covid-19 pandemic creating many negative impacts but also opening up new business opportunities. Enterprises can contact Vietnamese Trade Offices abroad to ask for support in connecting with importers and distribution systems in the host country, and understanding information and actively participating in trade promotion activities.