The Research For Trade Effects Of ASEAN Free Trade Area To Vietnam Agricultural Products Trade

The free trade zone is the lower development form of economic integration, means the countries in the world combine to be advanced development form under the perspective of the interests. The ASEAN free trade area was established in1992. This free trade area aimed at strengthening the competitiveness of ASEAN countries in the world and the attractiveness to foreign direct investment. The ASEAN Member States have a lot of advantages in common, the similar of shopping and spending habits, so this is the advantage and challenges as well which enterprises in the region have to face.Vietnam is a traditional agricultural country, in which agricultural population accounted for75%of the total population. Food crops include rice, corn, potato, sweet potato and cassava, in which principal crops are coffee, tea, rubber, pepper, peanuts, sugar cane, etc. Production of agricultural products, especially rice occupies a very important position in economic growth plan. Since Vietnam economy’s reforming and opening up taking in1986, Vietnam has remained a stable and rapid growth of economy which moves towards market orientation, especially the fast growth in export is a sign of opening policy’s achievement. With the rapid growth of the national economy and the increasing number of comprehensive national strength, Vietnam economy, in particular agricultural products industry, will be faced to positive prospects for development and new challenges as well. They are the non-tariff barriers and trade protection from other countries. So Vietnam can solve this problem by joining the ASEAN/AFTA. However, Vietnam has difficulties in trade relations with ASEAN countries, namely product competitiveness. In order to reduce the balance of trade gap and the guarantee of economic development objectives, Vietnam needs to promote exporting to ASEAN countries. This study researches for problems from development environment and agricultural industry by itself. It also studies Vietnam how to maintain and strengthen the international competitiveness of exports agricultural products..As a Vietnamese foreign student of international trade major in China, I begin to pay attention to issues of agricultural trade in Vietnam, and overcome the difficulty of the foreign language to write this thesis.In this research, I will first analyze the national trade structure and real situation of agricultural products trade between Vietnam and other ASEAN countries, discuss about their trade complementarily and competitiveness, the effects of AFTA on Vietnam’s agriculture. Then I will analysis the competition in all sectors that effect agricultural export products. Finally, I will refer some experiences from other countries and the trends of development to put forward some useful proposals to promote the development of economy, and speed up the process of integration to global market.