FTAs open door for Vietnamese goods to enter global market

Export turnover for the first half of 2019 was estimated at 122.72 billion USD, up 7.3% over the same period in 2018 (Photo: VNA)

The total import-export turnover in the first six months of 2019 was estimated at US$245.48 billion, the highest ever level among the six-month figures, announced the General Statistics Office of Vietnam (GSO). Export turnover for the first half of 2019 was estimated at 122.72 billion USD, up 7.3% over the same period in 2018, of which the domestic economic sector contributed 36.82 billion USD, an increase of 10.8%, accounting for 30% of the total export turnover.

The positive results have greatly contributed to Vietnam’s economic growth, ensured the national payment balance and provided more jobs for local labourers, according to senior researcher Pham Tat Thang from the Vietnam Trade Research Institute.

He granted an interview to Vietnamplus to give readers a more in-depth insight into his comments.

- Could you highlight some remarkable achievements in Vietnam’s export statistics in the first half of this year?

Associate Professor Pham Tat Thang: In my opinion, exports have been Vietnam’s highlight in the past 10 years. Notably, given the volatiles of global market, Vietnam has still witnessed the highest export growth in recent years.

- What has driven the economy upward?

Associate Professor Pham Tat Thang: The economic achievements we have made are attributed to numerous factors. Firstly, the FTAs concluded thanks to the government’s efforts have open up great opportunities for domestic firms to integrate into global market.

Secondly, the State has properly invested in infrastructure, which greatly facilitates the country’s economic growth. Besides, the country’s call for foreign investment has substantially contributed to the economic development.

Thirdly, owing to hygienic agricultural practices, a lot of Vietnamese agro-products have made it to choosy foreign markets.

Specifically, six commodities have managed to penetrate into the United States market, nine into China and many others to Australia, etc.

If proper attention and investment are made, agriculture is likely to bring a hefty sum through exports.

Vietnamese exports to major markets in the first six months of 2019

- Service sector has earned nearly eight billion USD, in which tourism sector accounts for nearly 70%. What do you think about the numbers?

Associate Professor Pham Tat Thang: Previously, the service sector has been referred by the Government for not living up to their potentials. However, it could be seen that the sector has improved significantly, especially tourism.

Specifically, Vietnam has won the title of Asia’s best destination in early 2019, kicking off a series of achievements. Tourism has become a spearhead sector in many localities across the nation.

However, I might say the growth is yet to meet its true potential. Also, supporting services such as telecommunication, banking, health care and education have not caught up with the fast-paced development of tourism.

-         Vietnam has signed numerous Free Trade Agreements, such as CPTPP, EVFTA, among others. What are the possible impacts of these FTAs on Vietnam’s exports?

Associate Professor Pham Tat Thang: There have been 12 Free Trade Agreements between Vietnam and other countries and organisations coming into force. They, especially those with Eurasia, Japan, EVFTA and CPTPP, have paved way for Vietnamese commodities to enter foreign markets.

However, the FTAs have also posed challenges to Vietnam as cheap labour will no longer remain the country’s competitive edge. It requires aggressive implementation of the Government’s direction on economic restructuring.

Associate Professor Pham Tat Thang grants Vietnamplus an interview (Photo: Vietnam+)

-         From the economic results in the first six months of 2019, could you please make some comments on prospects of exports in the remaining months?

Associate Professor Pham Tat Thang: With the achievements we have made in the first half of 2019, we should be assured that the export picture for the second half is positive, especially given the FTAs will have proven their effectiveness. Investment in hygienic agriculture starts growing while aquatic sector has been striving for a lift of EC’s yellow card.

-         Thank you very much./.