Hastening the issuance of legal documents to implement FTAs is important so that Vietnam could grasp the opportunities from the trade deals. (Photo: vov.vn) Hanoi (VNA) - Vietnam must hasten the process of issuing legal documents andinstitutional reform to implement free trade agreements (FTAs) and takeadvantage of these trade deals to boost exports, officials have said.
Speakingat a working session between the National Assembly Standing Committee’ssupervision group and the Ministries of Industry and Trade; and Planning and Investmenton July 22 about the implementation of FTAs, Deputy Minister of Industry andTrade Tran Quoc Khanh said that the trade deals brought benefits, but the gainshad not been breakthroughs in terms of quality.
Khanhpointed out that the many products of Vietnam were not competitive and had lowadded value, while firms were still struggling to participate in the global andregional value chains and were heavily dependent of imported raw materials.
NguyenSy Cuong, Vice Chairman of the NA Committee for Foreign Affairs, said that theinstitutional reforms and issuing of legal documents to implement FTAs remainedslow.
Cuongsaid that it was also necessary to clarify accountability in the slow issuanceof legal documents, adding that issuing legal documents was essential toimprove the legal framework to implement FTAs efficiently.
Hesaid that communication activities must be promoted to raise awareness amongenterprises and enable them to get ready for FTAs.
Consultancyshould also be provided to enterprises to meet technical standards of FTApartner markets, as well as applying non-tariff barriers to move towards tradesurplus and dealing with trade disputes.
TheMinistry of Industry and Trade must focus on developing decrees on resolvingcompetition issues and certification and verification of product origins whichwere important to enable Vietnamese firms to take advantage of the trade deals,he said.
TranHoang Ngan, member of the NA Economic Committee, said that in theimplementation of FTAs, Vietnam needs to set criteria to screen investorsbecause the country was now aiming at attracting high-quality foreign directinvestment which would bring high and environmentally-friendly technologiesinto Vietnam, promote technology transfer or encourage the participation oflocal companies in global value chains.
Ministerof Planning and Investment Nguyen Chi Dung said that the FTAs required Vietnamto continue improving the institutional and legal frameworks to ensureconsistency, transparency and fairness to limit disputes with foreigninvestors. He also said it was necessary to improve the early warning system toprevent disputes.
Theopening of markets together with commitments on creating a level business environmentfor both local and foreign investors might put pressure on Vietnamese firms incompetition, Dung said, urging firms to focus on renovating production,improving efficiency and increasing labour productivity, so that theircompetitiveness could be enhanced and they could take advantage of the FTAs.
Dungalso urged coordination between the NA and relevant Government agencies toissue legal documents to implement FTAs with the highest efficiency.
Heproposed the NA to support the Vietnam’s participation in internationaltreaties which were necessary to implement FTAs such as the InternationalCentre for Settlement of Investment Disputes Convention.
Sincejoining the World Trade Organisation in 2007, Vietnam has negotiated and signeda total of 16 FTAs, 13 of which were signed, including 12 in effect and the EU-VietnamFTA expected to come into force at the beginning of August 2020./.
VNA
