Nima Pouyan

AFTA's impact on Vietnam Nima Pouyan

Seminar paper from the year 2006 in the subject Politics - International Politics - Topic: International Organisations, grade: 1,3, King`s College London, course: The Business Environment in the Asia-Pacific, 15 entries in the bibliography, language: English, comment: This project analyses and evaluates the question, in how far the creation of the Asian Free Trade Area (AFTA) brought economic benefits to the ASEAN country Vietnam. To evaluate this question the impacts of AFTA on Vietnam's trade and their foreign direct investment are evaluated and in a further step the question ananlysed in how far AFTA can affect the government income revenues of Vietnam. , abstract: This book analyses and evaluates the question, in how far the creation of the Asian Free Trade Area (AFTA) brought economic benefits to the ASEAN country Vietnam. To evaluate this question the impacts of AFTA on Vietnam's trade and their foreign direct investment (FDI) are evaluated and in a further step the question analysed in how far AFTA can affect the government income revenues of Vietnam. For the analysis of AFTA's impact on Vietnams' trade, the trade structure of Vietnam will be analysed. In general it can be said that for Vietnam the accession to AFTA is a very important step in their transition process to a more market economy. Furthermore it is a major step in Vietnams' integration in the world economy. Especially the access of Vietnamese firms to a huge market such as ASEAN seems to be very advantageous. In the case of foreign direct investments, the question is if AFTA is seen by foreign firms and investors as a positive factor which would lead to investments in Vietnam or if it does not change the situation or if it has even a negative impact on the FDI due to the reason that the industries are not protected anymore by the tariffs and quotas. A further question to analyse is the origin of the FDI, this means if the major part comes from the ASEAN countries or if it has also any effect