The Perceptions and Responses of Vietnamese Firms Towards Deeper Regional Economic Integration: Case Studies from the Food Processing Industry

Increasing regional economic integration amongst ASEAN member countries, and the creation of the ASEAN Economic Community (AEC) will bring both opportunities and challenges for local firms. This research investigates the perception and understanding of five Vietnamese food processing companies towards the AEC as well as their planned responses towards deeper integration. Case study interviews revealed that respondents had a limited understanding of the AEC, which moderated their strategic responses. Opportunities identified include access to new markets, the possibility of exploiting regionwide resources, and access to regional value chains. Increased competitive pressure, particularly from foreign investors, was the key anticipated challenge. Business responses focused on increasing intra-regional exports, cooperating with potential partner organizations, improving products and processes, and revising marketing strategies. Respondents also believed that the Vietnamese government could do more to support their businesses in the face of deepening economic integration.