A representative of the Ministry of Industry and Trade speaks at the conference. (Photo: VietnamPlus) Hanoi (VNA) - Joining new-generation free trade agreements such as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the EU - Vietnam Free Trade Agreement (EVFTA), the UK - Vietnam Free Trade Agreement (UKVFTA) and so on has created not only advantages for Vietnam to raise its export revenue but also a driving force for its firms to raise their position in the global supply chain.
This was affirmed at a conference on export to FTA markets for sustainable development held by the Ministry of Industry and Trade in Ho Chi Minh City on November 18.
Push created from FTAs
Speaking at the event, Tran Quoc Manh, Chairman of the Board of the Saigon Production and Trade Development Company (Sadaco), held that as the economy is facing various challenges, the FTAs are creating many chances for firms.
The official said that the CPTPP has helped firms penetrate the global supply chain and, as a result, Vietnam wood exports have established their trademarks in major and new markets.
Nguyen Quang Huy, Deputy Director of the Industry and Trade Department in charge of the south under the Ministry of Industry and Trade, affirmed that after a period of implementation, new-generation FTAs such as the CPTPP and the EVFTA have brought into play their positive effects, with markets broadened and export revenue considerably increasing.
Thanks to the CPTPP, exports to Canada, Mexico and Peru have recorded annual growth rates of 25-30%, he pointed out. As for the EU, after the coming into effect of the EVFTA, two-way trade between Vietnam and the bloc in 2021 reached 63.3 billion USD, marking an increase of 14.8% over that a year earlier. In September this year alone, Vietnam's exports to the market were estimated at 39.4 billion USD, growing by 22.3%.
Meanwhile, Deputy Director of the European-American Market Department under the Ministry of Industry and Trade Nguyen Thao Hien stressed the positive effect of the new-generation FTAs. Citing the EVFTA, the official said the structure of the exports to the EU is tending to expand and diversify, as the key exports are recording an impressive growth speed and the export revenue of agro-forestry-fisheries products such as coffee, vegetables, and rice is skyrocketing.
Moreover, the structure of the imports and exports between Vietnam and the EU is supplementary, not directly competitive, which means the room is relatively large for firms to capitalise on in the time to come, Hien affirmed.
Meeting markets' high demands
Potential and chances are huge, but to make the fullest use of the advantages created by the FTAs, especially in the context that the international situation is forecast to continue its complicated and unpredictable development, EuroCham Vice Chairman Jean Jacques Bouflet held that it is of the top importance to provide sufficient information for the firms to make the best use of the existing provisions.
Also, according to the official, Vietnamese exporters must build their own brands, reduce raw exports and raise their processing capacity.
The EuroCham representative also tabled several reminders for Vietnamese exporters to the EU, stressing that exports must meet the related requirements on epidemic hygiene and technical barriers, as well as those on origins.
Customs clearance at a port. (Photo: VNA) Deputy Director Hien from the Ministry of Industry and Trade also reminded Vietnamese firms that they need to proactively grasp the situation and adjust their business and production plans to adapt themselves in a timely way to the new requirements and provisions of the markets, thus taking an effective and sustainable part in the supply chain.
The ministry will work with other ministries, localities and associations to build an action programme to realise the strategy so that import and export activities will remain a driving force of the country's rapid and sustainable economic growth. However, the way ahead is long and full of challenges that require joint efforts from the business community to overcome, she highlighted./.
