Experts say the EVFTA will have a significant impact on Vietnam's economy in the years to come. (Photo: vneconomy.vn) HCM City (VNS/VNA) - New-generation Free Trade Agreements (FTAs)are expected to help Vietnam become more competitive if the country reducestrading costs and improves its business environment, experts said at a conferencein Ho Chi Minh City.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) and the EU-Vietnam FTA (EVFTA) trade deals will have a significantimpact on the economy, according to Pham Binh An, director of the HCM CityInternational Integration Support Centre.
The CPTPP and EVFTA could help increase Vietnam’s GDP by 4.3 percent and 1.3 percent,respectively, by 2030, he said.
Shipments to the EU are expected to surge by about 44 percent by 2030, while those to CPTPP-member statesare expected to rise by 14.3 percent by 2035, according to An.
Moreover, the two trade agreements will put pressure on the Government toimprove institutional governance as well as the business climate because ofrequirements included in the FTAs.
As of last year, Vietnam had 17 FTAs with 60 countries, all of which offer thecountry a chance to transform its economy.
Besides increasing exports, FTAs have helped to promote administrative reform,improve infrastructure, and ensure equality in accessing resources.
Ngo Thanh Phong, lecturer at Tien Giang University, said that FTAs had createdopportunities to participate in global supply chains, but Vietnam must speed upadministrative reform and improve its investment environment, especially in thecontext of increased protectionism internationally.
Between 2021 and 2025, the country’s gross domestic product (GDP) is forecastto rise to 7 percent on the back of new-generation FTAs, according to theMinistry of Planning and Investment’s National Centre for Socio-EconomicInformation and Forecast.
Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI),said that Vietnam’s economic openness was ranked behind Singapore among ASEANmembers, but its competitiveness and capacity for integration were still low.
In the 2018 Global Competitiveness Report by the World Economic Forum, Vietnam ranked77th out of 140 countries. It placed 99th for institutional competitiveness and101st in business competitiveness.
Experts noted that Vietnamese products have advantages in certain markets suchas the EU, which has little direct competition with Vietnam. However, to makethe most of their position, local businesses must meet the EVFTA’s requirementson environmental standards, labour relations, product origin, and sustainabledevelopment.
At the conference, 20 out of 50 scientific papers received from 22 universitiesnationwide were chosen by the conference’s Scientific Council to be publishedin the 2019 yearbook of the HCM City Banking University.
The event, organised by the university in cooperation with the HCM City YouthScience and Technology Development Centre, offered researchers, economicexperts and scholars a chance to exchange views on how new-generation FTAs willaffect Vietnam’s economy./.
VNA
