Hanoi (VNA) – The launch of the 2024 FTA Index has not only provided an overview of provinces and cities’ performance in implementing free trade agreements (FTAs), but also opened up significant room for improvement, encouraging localities to adjust their approaches and better support sustainable business growth.
The FTA Index, developed and announced by the Ministry of Industry and Trade, evaluates how effectively Vietnam’s 63 provinces and cities, before the administrative unit merger, carried out commitments under various FTAs. The index serves as a tool to measure local integration capacity while offering insights for further improvement to strengthen Vietnam’s position in global trade.
The findings were discussed at a seminar on the results of the first FTA Index and emerging issues, organised by the Industry and Trade Review on October 3.
According to the 2024 FTA Index, the average score among the 63 provinces and cities stood at 26.20 points, with the lowest scoring locality reaching only 14.49 points, indicating disparities in the capacity to implement FTA commitments.
Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, noted that the performance of localities in implementing FTAs, especially new-generation agreements, remains uneven. Some provinces have made very good use of FTAs, as shown by their strong export growth and surges in shipments of key commodities.
However, he pointed out that support policies at the local level are inconsistent. While some provinces have actively introduced supportive measures, others are lagging behind. One major challenge, he added, lies in the shortage of personnel dedicated to FTA implementation.
Khanh said in many provinces, a single civil servant is responsible for multiple issues, which reduces the efficiency of FTA-related support. He also called for a clearer human resources development strategy to enhance FTA execution.
The official emphasised that Vietnam has achieved encouraging outcomes from negotiating and signing to implementing FTAs. Yet, he perceived that there is still significant room for improvement to deliver greater benefits for both enterprises and the economy. Facing the US tariff policy and the fast-changing global economic landscape, diversifying export markets and maximising FTA advantages are becoming particularly crucial.
One year since the FTA Index was launched, many provinces and cities have shown positive changes in perception and approach toward FTA implementation.
Associate Professor Dr. Dao Ngoc Tien, Vice Rector of the Foreign Trade University, observed that many localities have recognised their performance was weaker than expected, prompting them to reassess and reform their approaches.
Tien noted in the past, local authorities had primarily concentrated on holding conferences and seminars to promote FTAs. They are now setting more concrete goals, focusing on the FTA implementation results and enterprises’ practical needs. He added that provinces are working to identify target markets and key export sectors to develop more tailored support plans that directly benefit exporting firms.
At the same time, he cautioned that the sustainability factor in export activities has yet to receive adequate attention. He stressed that although it is not an immediate priority, sustainability will be a long-term strategic objective requiring preparation from both enterprises and local authorities. He further mentioned that while several provinces have begun integrating sustainability into their plans, implementation remains modest.
Meanwhile, Nguyen Van Than, a National Assembly deputy and Chairman of the Vietnam Association of Small and Medium Enterprises (VINASME), proposed that the FTA Index should be included as one of the criteria for ranking provincial performance and if that happens, local authorities will immediately focus on improving their scores.
Than also highlighted the key role of local authorities as “pathfinders” – creating favourable conditions for businesses to develop, improve management and production capabilities, and access international markets.
Experts agreed that the FTA Index is more than a measurement tool, it acts as a driving force for changes at the local level. By effectively leveraging the index, provinces and cities can strengthen their integration capabilities, assist enterprises in expanding to foreign markets, and move toward sustainable development.
To achieve these outcomes, localities were recommended to invest more in human resources, support mechanisms, and long-term strategies.
Capitalising on the FTA Index, analysts said, will not only help boost local economic efficiency but also serve as a catalyst for Vietnam’s broader sustainable development. This marks an opportunity for provinces and cities to devise appropriate strategic directions and make better use of FTAs, thereby gaining a firm foothold in global markets.
