Deputy Prime Minister Tran Luu Quang and Israeli Prime Minister Benjamin Netanyahu witnessed the signing ceremony of the Vietnam-Israel Free Trade Agreement (VIFTA). Photo: VGP

Vietnam has been participating in 19 bilateral and multilateral Free Trade Agreements (FTAs) with most economies in the world. Of these, 16/19 FTAs have taken effect with more than 60 partners, covering all continents, with a total GDP accounting for nearly 90% of global GDP.

This is also the basis and foundation for Vietnam to become one of the leading countries in the region in participating in bilateral and multilateral economic cooperation frameworks.

When investing in Vietnam, partners can access most markets in the world.

According to the assessment of the Ministry of Industry and Trade, FTAs are not only a strong driving force to strengthen economic growth but also support the People's Committees of provinces and cities to expand trade connections and promote economic development.

Dak Lak takes advantage of FTAs. Currently, the province's goods have been exported to more than 70 countries and territories, bringing products and goods to final consumers in many major markets around the world.

On the business side, Nguyen Thi Huyen, general director of Vietnam Cinnamon Production and Export Joint Stock Company (Vinasamex) said that currently Vinasamex has exported cinnamon and anise products to many markets with FTAs.

Previously, when there was no brand, businesses exported to easy-going markets. However, in recent years, thanks to the "leverage" of FTAs, businesses focused on high-value products to export to demanding markets, such as the EU, Canada, the US, and Japan.

Total import-export turnover in 2023 is estimated to reach US$683 billion, of which exports are estimated to reach US$354.5 billion and imports are estimated to reach US$328.5 billion.

In 2023, the trade balance continues to record a trade surplus for the 8th consecutive year with an estimated surplus of US$26 billion, nearly three times higher than in 2022.

This positively contributes to the balance of payments, helping to increase foreign exchange reserves, stabilizing exchange rates and other macroeconomic indicators of the economy.

These results come from solutions to overcome difficulties and open markets by the Government, ministries, branches and the business community, notably the proactiveness in promoting the implementation of the FTAs of the Ministry of Industry and Trade.

In addition to traditional markets, the Industry and Trade sector has promoted and negotiated to sign FTAs with the European Free Trade Association (EFTA), Southern Common Market (MERCOSUR), UAE, and Canada to diversify markets, products and supply chains.

With the Free Trade Agreement between Vietnam and EFTA, up to now, the two sides have gone through 16 official negotiation sessions and many sessions at the delegation head and technical level.

Currently, the two sides identified remaining issues in important areas of the Agreement such as trade in goods, government procurement, and intellectual property.

As for the Vietnam-Israel Free Trade Agreement (VIFTA), the signing of VIFTA marks the result of the tireless efforts of both countries after a period of seven years with 12 negotiation sessions.

Israel is the first country in West Asia with which Vietnam signed an FTA. Through VIFTA, Vietnam can promote the export of strong products not only to Israel but also other markets in the Middle East, North Africa and Southern Europe.

Photo: laichau.gov.vn

For the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE), the Ministry of Industry and Trade has chaired several negotiation sessions in 2023.

Currently, the scope of Vietnam's FTA partners is quite wide and comprehensive. Therefore, in the next 3-5 years, important milestones of many Agreements will be reached and gradually move towards tariff liberalization of most imported products with main trading partners.

To optimize the positive impacts and minimize the negative impacts of economic integration on the economy, the Ministry of Industry and Trade will focus primarily on implementing and effectively taking advantage of opportunities from FTAs, especially from new-generation free trade agreements such as CPTPP, EVFTA, UKVFTA, ASEAN agreements with partners.

The Ministry will also support businesses in early warning about trade defense measures of partner countries.

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