Asean-China free trade area its impacts on the development of the Vietnam's trade

Abstract

The ASEAN ? China Free Trade Area has officially come into effect since January 1st 2010, turned ACFTA into the biggest commercial area in the world including developing countries with nearly 2 billion consumers and around $300 billion of trade volume. However, the establishment of ASEAN-China FTA presents a policy question. In this paper, the most crucial question is, is Vietnam, an individual member country of ASEAN going to get much benefit when trading with China under ACFTA? To find the answer for this question, this paper aims to assess the implication of ACFTA for Vietnam ? China trade relationship, and likely challenges and opportunities that Vietnam will face. In this effort, the paper also discusses selected industries in Vietnam affected by the formation of ACFTA.