This report examines the competitiveness of the food processing sector in Viet Nam, focusing on four subsectors: rice milling, coffee processing, seafood processing, and fruits and vegetables. The rationale for the study is that Viet Nam, as a member of the Association of South East Asian Nations (ASEAN), is obliged to follow the trade liberalisation schedule defined by the ASEAN Free Trade Agreement (AFTA). Under this agreement, Viet Nam will have to reduce the import tariffs on almost all goods imported from ASEAN members to less than 5 percent by 2003. An important question for the government is how trade liberalisation is likely to affect the food processing sector and what steps can be taken to make the transition a successful one.
