'Sweet fruits' from FTAs still await active participation of enterprises
WVR - FTAs provide a good launchpad but the "sweet fruits" from these opportunities still await enterprises that are capable and proactive enough to participate more actively and deeply in the international economic "playground".
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| The total export turnover to partner countries participating in FTA agreements accounts for about 65% of Vietnam's total export turnover. (Source: Review of Finance) |
According to the Ministry of Industry and Trade, in recent years, export activities in particular and foreign economic affairs and international economic integration in general have achieved many important results. Export turnover has continuously increased. The trade balance has been positive, maintained a gradually increasing trade surplus for many years, contributed to stabilizing the overall economy, supporting the implementation of exchange rate policy, creating jobs, enhancing production capacity and management level of enterprises.
More opportunities for enterprises
An important contribution to the recent export results is the implementation of many solutions to maximize the opportunities from FTAs that Vietnam has signed.
Statistics show that the total export turnover to countries participating in FTAs accounts for about 65% of Vietnam's total export turnover.
In which, the total export turnover benefiting from preferential import tariffs in 2023 reached over USD 86 billion, an increase of 9.2% compared to 2022, excluding the export turnover to partner markets that have eliminated tariffs to 0%.
Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, commented that taking advantage of FTA opportunities not only helps develop business operations and expand product consumption markets but also enhances competitiveness, especially in the current volatile international market.
Participating in FTAs offers many benefits for enterprises, such as providing opportunities to access new markets, reducing tariffs and removing trade barriers. These help boost the export capability of enterprises, increase sales and expand operational scale.
"When leveraging FTAs, enterprises can access cheap sources of goods and advanced technology from FTA partners, which helps improve labour productivity, product quality and competitiveness in the international market," Mr. Mac Quoc Anh assessed.
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| Export activities and the exploitation of FTA benefits are still limited and not commensurate with our potential and strengths. (Source: Vnfinance) |
Potential yet to be fully realized
However, the Ministry of Industry and Trade noted that export activities and the exploitation of FTA benefits are still limited and not commensurate with the potential and strengths, failing to fully utilize available opportunities. The professionalism and sustainability of some enterprises are still lacking.
Mr. Ngo Sy Hoai, Vice Chairman of the Vietnam Timber and Forest Products Association (VIFOREST), emphasized that enterprises need to identify risks and challenges to promote effective implement FTAs.
Mr. Ngo Sy Hoai said: "We talk a lot about export growth but less about the quality of growth and exports. Currently, all input costs are increasing, including labour costs, but prices are not commensurate. Most wood industry enterprises produce based on foreign orders and are heavily underpriced".
Dr. Nguyen Thi Thu Trang, Director of the Center For WTO and International Trade (Vietnam Chamber of Commerce and Industry), affirmed that successfully negotiating and participating in FTAs demonstrates the maturity of Vietnam's diplomacy and international economic integration capabilities.
FTAs provide a good launchpad but the "sweet fruits" from these opportunities still await enterprises that are capable and proactive enough to participate more actively and deeply in the international economic "playground."
Proactive and innovative in both thinking and action
In the coming time, to help businesses maximize the opportunities from FTAs, the Ministry of Industry and Trade has been actively coordinating with ministries, sectors, localities, and enterprises to implement solutions such as exploiting and expanding export markets, maintaining and developing key and traditional markets, effectively utilizing markets signed FTAs with Vietnam and enhancing exploitation of potential markets (such as Russia, India, the Middle East, and Africa). At the same time, the Ministry is implementaring numerous support measures in order to improve the competitiveness and export capabilities of various industries to meet export requirements. This focuses on key sectors: processing and manufacturing industries, agriculture, forestry, and fisheries sectors.
The Ministry is also actively providing market information, improving the effectiveness of export promotion, continuously updating and providing information on export opportunities and policy changes in export markets, especially in countries participating in FTAs with Vietnam to localities, associations and enterprises, to ensure that enterprises can promptly capitalize on these opportunities. They are also organizing the dissemination and guidance on the content of commitments and how to utilize the advantages of FTAs to enterprises, industry associations and specialized management agencies in localities through various direct and online ways that are convenient for research and utilization.
Furthermore, the Ministry supports enterprises in protecting their legitimate interests abroad by proactively obtaining information, coordinating and assisting enterprises in effectively responding to trade defense cases abroad and safeguarding the legitimate interests of businesses. Simplifying the procedures for issuing certificates of origin and promoting digital transformation in the issuance of electronic certificates of origin are also prioritized.
It is believed that with a well-structured strategy, a proactive spirit and a strong innovation in both thinking and action, Vietnamese enterprises will certainly make good use of the advantages brought by FTAs for a new phase of growth.
