Enterprises have to fulfill stringent standards to increase exports. (Photo: VietnamPlus) Hanoi (VNA) – Adherence to foreign markets’ sustainability standards and capitalisation of existing free trade agreement will help Vietnam boost overseas shipments to realise its set target of 6% growth in export revenue in 2024, according to the Ministry of Industry and trade (MoIT).
The global economy’s growth is projected to continue slow down in the year, affecting the growth prospects of developing countries, including Vietnam, a report from the ministry showed.
Together with trade protectionism, tough standards and new regulations regarding supply chains, materials, labour and environment that developed countries set on imported products have posed great challenges to Vietnamese businesses. The EU’s law to fight deforestation and Carbon Border Adjustment Mechanism (CBAM) are among them.
Deputy Minister of Industry and Trade Phan Thi Thang said the ministry will continue removing bottlenecks and supporting enterprises so that major industrial projects will be put into operation to improve production capacity.
Besides helping businesses seek export markets, the ministry will capitalise on existing free trade deals, deploy new trade pacts to diversify markets, exports and supply chains, and improve the efficiency of the trade promotion work, she added.
Currently, the EU is the third largest export market of Vietnam. However, Vietnamese products are losing their advantage in this market as exporters have been required to meet the bloc’s green standards, which cover high-quality products, environmental protection and sustainable development.
Meanwhile, the CBAM will not only apply to the six industries of iron and steel, cement, fertiliser, aluminum, electricity and hydrogen but also affect sectors that consume a large volume of materials and energy.
Vietnamese enterprises are moving towards digital transformation and circular economy. (Photo: VietnamPlus) A wide range of new environmental standards will be applied by the EU in the time ahead, including the European Green Deal that comprises various packages to reduce greenhouse gas emissions and decouple economic growth from resource use.
Under the green deal, the bloc issued the EU Deforestation Regulation (EUDR), taking effect from 2024, with a view to preventing the import of products and commodities with close link to deforestation or forest degradation.
Director of the MoIT’s Department of Multilateral Trade Policy Luong Hoang Thai said the business community must take into account long-term trends so as to make rational adjustments to their production to break into the European market.
Domestic firms should take bold steps to satisfy the interest of consumers in this fastidious market, he said.
Assoc. Prof. Dr Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment under the Ministry of Natural Resources and Environment, said that the institute has recommended ministries, sectors and localities integrate the development of circular economy into sustainable production and consumption.
He described financial strength, enhanced capacity and technology transfer as important factors to encourage green industry and trade.
From business perspective, Deputy Director General of Sao Thai Duong Joint Stock Company Nguyen Thi Huong Lien said firms who have not exported goods to the UK and European markets need support from Vietnamese trade offices, adding that her company has consulted several experts from the UK and Europe and got assistance from the Vietnamese Embassy and the trade counselor in the UK so that it can develop products meeting requirements of the market.
Trade promotion gives a fillip to enterprises to reach out to the world. (Photo: VietnamPlus) Over the past time, the MoIT has given priority to enhancing trade promotion in foreign markets, including the EU.
Director of the Vietnam Trade Promotion Agency (Vietrade) under the MoIT Vu Ba Phu said the ministry will implement a slew of technical support programmes, join hands with international organisations to enhance capacity of production sectors, and work with Vietnamese trade offices and representative agencies to update them with regulations and guidance on the EU Green Deal and circular economy./.
