The challenge of regional economic integration: The Vietnamese perspective

The aim of this paper is to assess the progress of Vietnam's integration wi th ASEAN and explain the current ambivalence in Vietnam's trade policy as i t prepares itself for greater regional competition resulting from the event ual establishment of an ASEAN Free Trade Area (AFTA). It argues that this c urrent ambivalence can largely be attributed to the economic difficulties V ietnam currently faces, and that unless these difficulties are resolved, th ere is a risk that Vietnam might not be able to implement its AFTA commitme nts and thus lose the potential benefits of regional economic integration. Vietnam's experience in this regard raises the important issue of conflict between domestic and international strategic policy. In this context the di fficulty of adopting appropriate economic measures to benefit from regional integration is clearly shown, providing some lessons for any relatively le ss developed or former centrally planned economy contemplating joining a re gional trading arrangement.