FTAs to Offer More Benefits for Vietnam
Advantages from FTAs such as CPTPP, EVFTA, and UKVFTA, in recent times, have opened up many opportunities for Vietnam to grow and diversify export and import markets and attract foreign investment. FTAs have brought positive impacts on socio-economic development in many localities across the country, especially promoting trade value growth and market expansion
Evaluating the effectiveness of participating in new-generation FTAs for businesses, Do Thi Thuy Huong, an Executive Board Member of the Vietnam Electronics Industries Association, said that through the Ministry of Industry and Trade and VCCI, businesses have received support from the German Development Cooperation Organization in informing businesses about the latest updated standards of the German Supply Chain Due Diligence Act, that is, the latest supply chain review duty begins to apply from January 01, 2023.
|New-generation FTAs benefit Vietnamese people and businesses.
According to Huong, through international integration by FTAs, businesses in the Association have coordinated activities with the Ministry of Industry and Trade, VCCI, and the German Development Cooperation Organization to propagate to businesses. Through fairs and exhibitions in important markets, Vietnam is gradually opening the way for the production and export of electronic components and equipment.
To Thi Huong Lan, Deputy Director of Thai Binh Department of Industry and Trade shared: “Taking advantage of FTAs, the export turnover of local products has increased to 40% of the total export turnover of the province. Tariff incentives from FTAs for businesses in Thai Binh are favorable and effective".
“Most of Thai Binh's export products have met the origin criteria and regulations in the Agreements, as well as taken advantage of incentives, especially provided by the EVFTA. The Department has helped businesses exporting to Japan take advantage of tariff incentives because previously many businesses did not meet the regulations in the ASEAN - Japan or Vietnam - Japan Agreement", Lan said.
Most markets had a decline in import-export turnover, leading to a difficult economic situation, some markets decreased by up to 30%, but the UK market grew by 11%. This positive comment by Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather, Footwear and Handbags Association (Lefaso) is well-founded because export growth in the UK market has helped Vietnam's leather and footwear industry not decline too deeply in 2023.
According to Xuan, the Association has supported SMEs (Small and Medium Enterprise) to improve product quality, especially exporting standard shoe products to the European market. Because the regulations of this market require certification, Vietnam not only promotes exports to the UK market but also to other markets around the world.
According to Luong Hoang Thai, Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), new-generation FTAs bring many beneficial negotiation results for Vietnamese people and businesses, creating space for Vietnamese businesses to access and diversify export markets, avoiding excessive dependence on one market.
Although FTAs are bringing many positive effects, there are still some difficulties and limitations because Vietnamese enterprises have not exploited the incentives from the Agreements. The proportion of export turnover to FTA markets has not met expectations. The rate of taking advantage of preferential C/O incentives is not risen and the number of domestic enterprises exporting to FTA markets is still modest. This will require greater efforts from governing bodies, associations, and businesses to access information and recognize the advantages of each FTA.
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