FTAs create new driving force for exports

The signing of a series of new-generation FTAs such as the CPTPP, the Vietnam-EU FTA, and the RCEP is expected to significantly impact the Vietnamese economy by helping expand import-export markets and open up new potential markets.
FTAs create new driving force for exports ảnh 1Enterprises intensify investment in technology to raise productivity (Photo: VNA)

Hanoi, (VNA) - International and economic integration has opened up great opportunities for Vietnam’s imports and exports. 

In particular, the signing of a series of new-generation FTAs such as the CPTPP, the Vietnam-EU FTA, and the RCEP is expected to significantly impact the Vietnamese economy by helping expand import-export markets and open up new potential markets. 

FTAs – a boost for exports 

The Ministry of Industry and Trade (MoIT) said exports can be considered one of the most impressive achievements of the Vietnamese economy. In the ten years of implementing the strategy on import-export from 2011-2020, total foreign trade increased 2.7 times, from 203.6 billion USD in 2011 to 545.3 billion USD in 2020. 

In 2021, despite the severe impact of the COVID-19 pandemic, the import-export value reached a record 668.5 billion USD. In the first seven months of 2022, the value amounted to 431.94 billion USD, with export revenue surging 16.1% year on year to 216.35 billion USD and import revenue rising 13.6% to 215.59 billion USD.

The significant outcome is partly attributable to Vietnam’s participation in FTAs. Statistics of the Ministry of Industry and Trade show that revenue from exports benefiting from tax incentives under free trade agreements (FTAs) topped 69 billion USD in 2021, accounting for 32.66% of total export revenue in markets that are members of those FTAs.  

In January-July this year, high growth was seen in exports to FTA partners. Le Hoang Tai, deputy director of the Trade Promotion Department under the MoIT, cited statistics that showed exports to three CPTPP members, Peru, Mexico and Canada, rocketed by 84.4%, 44.5% and 20.8%, respectively. 

Meanwhile, Vietnam’s exports to the EU went up 21.1% to 27.67 billion USD, to ASEAN - by 25.8% to 20.38 billion USD, to the Republic of Korea – by 14.5% to 13.9 billion USD, and Japan – by 12.2% to 13.3 billion USD. 

It could be said that many enterprises have made good use of the existing FTAs to expand their markets. An example is the leather-footwear industry. 

According to Phan Thi Thanh Xuan, Vice President and Secretary General of the Vietnam Leather, Footwear and Handbag Association (Lefaso), the leather and footwear industry earned 14 billion USD from exports in the first seven months of this year, a 13% increase year on year. In addition, good growth was recorded in FTA member markets, with a 10% rise in sales to CPTPP markets and an 18% increase in shipments to the EU.

“By far, the industry has been able to optimise the advantages created by FTAs, which helped it to overcome challenges posed by the COVID-19 pandemic,” Xuan said. 

Quick to seize opportunities 

Such optimistic outcomes show that export has become an important driver for Vietnam’s economy. Moreover, the new-generation FTAs have opened up opportunities for Vietnam and let it enter a new playground with greater cooperation possibilities and fewer tariff obstacles.  

However, to optimise the advantages of FTAs, enterprises must tackle challenges in rules of origin and regulations on food hygiene and safety and environmental protection.  

Economist Le Quoc Phuong said enterprises must meet the high standards of export markets to join their playground and benefit from tariff reduction. 

According to Xuan, the leather-footwear industry has raised local product contents to 55% and is working to increase the rate to 70-80 %. 

However, the industry is facing difficulties in producing materials and auxiliary materials, Xuan said, citing the example of leather. Vietnam has to import billions of USD worth of leather each year, as local products do not meet strict environmental regulations.  

The Lefaso official proposed that relevant agencies pay attention to developing a sustainable supply of materials, thus not only ensuring stability for the industry but also increasing its capacity to join global supply chains.

Xuan also voiced her hope that the development strategy of the leather-footwear industry would be quickly approved, laying the foundation for enterprises in the industry to build their production and business plans.  

The deputy director of the Trade Promotion Department advised enterprises to invest more in controlling product quality, raising staff’s skills in foreign language, negotiation and trade promotion to keep up-to-date with global consumer trends and better perform trade promotion work./. 

VNA

See more

The 5th Exhibition of Ho Chi Minh City and Friendship Provinces and Cities in Savannakhet takes place from April 2 to 6. (Photo: VNA)

Vietnam, Laos boost trade at Savannakhet expo

Vice Governor of Savannakhet Saensak Soulisak highlighted the exhibition’s role in expanding trade collaboration, enabling businesses to connect, share experience, and explore investment prospects. He also noted its significance in promoting local products to a wider market.

Visitors at the exhibition (Photo: VNA)

Vietnam Expo 2025 opens, spotlighting digital transformation, innovation

This year’s edition, themed “Step together in a digitised world,” has attracted around 400 businesses from 18 countries and territories, with over 500 booths. Alongside traditional networking, it introduces online business-to-business (B2B) matching, enabling year-round connections.

Prime Minister Pham Minh Chinh speaks at the second meeting of the National Steering Committee for building the private economic sector development project (Photo: VNA)

Private sector encouraged to join major national programmes, projects

It must fully unleash the productive capacity and resources of the country through the private sector; mobilise all private resources for national development; harness the effectiveness of internal forces, including human, natural resources, history, and culture, while effectively combining them with external resources such as capital, technology, human resources, and management experience, he said.

At the annual Vietnam-Cambodia business dialogue in Phnom Penh on April 4 (Photo: VNA)

Annual Vietnam-Cambodia business dialogue held in Cambodia

The annual business dialogue in Cambodia attracted around 150 delegates, including Vietnamese businesses and Vietnamese-origin companies operating in Cambodia across various sectors such as finance, banking, insurance, telecommunications, agriculture, construction, interior design, food services, transportation, logistics, trade, healthcare, and tourism.

Rice is one of Vietnam's exports to Cuba. (Photo: VNA)

Vietnam-Cuba Business Forum held in Hanoi

Addressing the event, Cuban Ambassador Rogelio Polanco Fuentes affirmed that Cuba will always stand alongside the Vietnamese Government and business community in their efforts to achieve the challenging target socio-economic goals.

The private sector is expected to make breakthroughs for national development. (Photo: VNA)

Party official anticipates breakthroughs in private economic sector

With the Politburo set to issue a dedicated resolution on the private economic sector, there should be a reformed approach to action plans, according to Secretary of the Party Central Committee and head of Head of its Commission for Policies and Strategies Tran Luu Quang.

NCSoft and VNGGames sign a cooperation agreement to develop products in Southeast Asia. (Photo: VNG)

More RoK’s game developers target Vietnam

Over half of Vietnam's nearly 100 million population being gamers and the country's competitive labour costs are among reasons for Korean gaming firms' expanding presence in Vietnam.

Representatives from the Vietnamese Embassy in the UK, LHR leaders, airline partners, and passengers at the anniversary event (Photo: VNA)

Vietnam Airlines marks 10 years of UK route operations

Vietnam Airlines launched its direct UK route in 2011, initially operating from London Gatwick Airport (LGW) before transitioning to Heathrow in 2015, improving connectivity to one of the UK’s major international hubs./.

President of the Cuban Chamber of Commerce (CCC) Antonio Luis Carricarte Corona. (Photo: VNA)

Cuban commerce official optimistic about bright future of Vietnam-Cuba cooperative ties

President of the Cuban Chamber of Commerce (CCC) Antonio Luis Carricarte Corona hailed Vietnam as Cuba’s second-largest trading partner in Asia and its top investor, spotlighting its foothold in the Mariel Special Development Zone via Viglacera. This zone, he noted, is set to become a pivotal hub for Vietnamese investment in the years ahead.