Non-tariff barriers still impede Vietnamese exports to ASEAN
WVR - Despite the elimination of most intra-bloc tariffs within ASEAN, Vietnamese goods continue to face significant hurdles due to non-tariff barriers (NTBs), which raise costs and reduce competitiveness in the regional market.
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This concern was highlighted at the workshop “Easing Non-Tariff Barriers to Unlock ASEAN’s Potential”, jointly held by the Vietnam Investment Review and the New Zealand Embassy on June 27, 2025.
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| Delegates at the workshop titled "Easing Non-Tariff Barriers to Unlock ASEAN’s Potential” on June 27, 2025. (Photo: VIR) |
Speaking at the event, Mr. Le Trong Minh, Deputy Editor-in-Chief of the Vietnam Investment Review noted that while ASEAN has eliminated over 99% of internal tariffs, NTBs remain major obstacles to regional trade and investment.
“In the context of ASEAN advancing toward its 2045 vision of stronger economic connectivity and digital trade integration, removing NTBs is an urgent necessity,” he stated.
According to a World Bank report, NTBs fall into nine broad categories. Among them, sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT) account for a significant portion—SPS measures alone represent 37.5%. While intended to protect health, safety, and the environment, a lack of transparency or consistency in these measures can create hidden barriers, increasing costs, delaying customs clearance, and raising risks for businesses.
“For small and medium-sized enterprises, complying with NTBs—such as undergoing re-inspections, keeping up with technical changes, obtaining halal certification, or dealing with fragmented digital procedures—can be a heavy burden,” the Deputy Editor-in-Chief added. “NTBs can account for 2–4% of the value of goods. Reducing these costs by even 10% could boost ASEAN trade by 3–4%, equivalent to tens of billions of USD.”
Mr. Nguyen Anh Dung, Country Director of NielsenIQ in Vietnam, the Philippines, and Myanmar, identified three key challenges facing businesses in ASEAN: divergent national standards, weak distribution infrastructure, and cultural differences in consumer behavior.
“For example, a cosmetic product approved in Thailand may not be accepted in Vietnam if it lacks a secondary label or differs in ingredient declaration. In the food industry, halal certification presents additional challenges in markets like Malaysia and Indonesia due to complex procedures, high costs, and long processing times,” Mr. Dung explained.
He also pointed to fragmented logistics networks and domestic distribution as barriers. Many global brands struggle to penetrate areas beyond major urban centers due to the lack of reliable local partners and infrastructure.
“To overcome these challenges, businesses need to understand not only the legal frameworks but also the market landscape. Leveraging data on local purchasing behavior and consumer trends is essential for targeting the right products and partners,” he emphasized.
Ms. Le Hang, Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) described NTBs as a major impediment to Vietnamese exports, particularly in the form of SPS and TBT regulations and licensing requirements.
“ASEAN countries often enforce strict quarantine, certification, and food safety standards. Compliance may require additional documentation, lab testing, or changes to production processes—all of which pose serious difficulties for smaller exporters,” she said.
To assist businesses, VASEP has worked to bridge communication between enterprises and regulatory bodies, advocated for policy adjustments, organized trade promotion activities, and provided training on traceability, ESG practices, and sustainable sourcing. According to Hang, many of these recommendations have been taken into account by the government, helping to alleviate trade bottlenecks and secure export contracts.
The workshop provided a platform for exporters and business leaders to share experiences and explore policy solutions to improve trade flows. Discussions also focused on strategies to boost market resilience, support regional integration, and enhance the long-term competitiveness of ASEAN economies in a shifting global trade landscape.
