Illustrative image (Photo: VNA)
Hanoi (VNA) – Vietnamese firms have not beenable to fully tap incentives offered by free trade agreements (FTAs) thatVietnam has signed, experts said.
Vietnam has so far engaged in the signing and negotiationsof 16 FTAs, 10 of which have taken effects. Through the deals, the country hasentered into free trade partnerships with many economic powers and regions suchas Japan, the Republic of Korea, the ASEAN and the Eurasian Economic Union (EAEU).
However, the growth of Vietnam’s exports to some partners, suchas the RoK, China, and ASEAN, has not caught up with the surge in imports fromthose countries, resulting in big deficit for Vietnam in trade with those partnerstotalling 68.7 billion USD in 2017.
The ASEAN Trade in Goods Agreement (ATIGA) was the first FTAthat Vietnam has joined, under which up to 98 percent of tax lines will be abolished,the biggest number among effective FTAs. However, the trade balance betweenVietnam and ASEAN has been tilting in favour of other ASEAN members.
Statistics of the General Department of Vietnam Customs showedno sudden surge in Vietnam’s exports to ASEAN countries since the formation ofthe ASEAN Economic Community in 2015. Instead, the flow of imports from ASEANmembers into Vietnam has increased strongly. As a result, Vietnam recorded a6.5 billion USD deficit in trade with ASEAN countries in 2017, and 5.4 billionUSD in the first 10 months of 2018. This is a matter of concern for Vietnam.
The trade deficit with the RoK is also increasing threeyears after the Vietnam-RoK FTA took effect, reaching more than 24 billion USDin the January-October period of this year.
Under the deal, the RoK commits to remove tariff forVietnamese goods within three to five years since the date the FTA entered intoforce, while Vietnam will do the same over the course of 10 years.
Trade experts warn that it will be difficult for the countryto reduce deficit and restore trade balance with partners in East Asia andSoutheast Asia in the short term.-VNA
