Investors from Thailand are looking at Vietnam with great interest. Thai garment traders and companies wish to set up joint ventures in Vietnam. They feel the Vietnamese market has the potential and therefore, want long-term cooperative opportunities with Vietnamese partners. They plan to begin by introducing Vietnamese customers to prime quality products and services from Thailand.
Bilateral trade between Vietnam and Thailand, which currently stands at $9.5 billion, is expected to increase at 20 per cent per annum to reach $15 billion by 2020. Vietnam is currently the second largest trading partner of Thailand in the Asean region. Thai garment businessmen sees great opportunities with Vietnamese counterparts especially after the establishment of the Asean Economic Community (AEC) in 2015.
AEC will transform Asean into a region with free movement of goods, services, investment, skilled labor, and freer flow of capital. It is expected to boost Vietnam’s Gross Domestic Production by 14.5 per cent and employment rate by 10.5 per cent. There will be an increasing demand for skilled labor in construction, transport, garment and textiles, as well as food processing industries.
The 10 member states within the association of Southeast Asian nations will form a single market next year with the aim of easing cross border trade and labor in a region of 600 million people. AEC could increase trade and investment flows but it could also widen inequality, with fewer jobs for women than men.