Sustainability – key to FTA markets: experts

At the workshop “Opportunities and Challenges for the Enterprises and Export Supply Chain of Vietnam” (Photo: VNA)

Hanoi (VNA) – Vietnamese businessesengaging in the global supply chain should secure compliance with sustainabledevelopment standards, including those on international labour, so as to access markets with whom Vietnam has signed free tradeagreements (FTAs), according to Dang Duc Anh, Deputy Director of the CentralInstitute for Economic Management (CIEM).

At the workshop “Opportunities and Challenges for the Enterprises and ExportSupply Chain of Vietnam” held in Hanoi on October 17, Anh stressed thatalthough the signed FTAs has granted Vietnamese products an easier access tomore than 50 foreign markets, they, especially new-generation trade pacts, contain regulations dedicated to sustainable development that may pose great challengesfor exporters. 

Together with mechanisms to promote the implementation of FTAs, Vietnam’s major trade partners such as the EU and the US have ramped up efforts to carry outsustainability commitments through their laws on supply chain due diligence,which require their enterprises to strictly control the supply chain, he added.

In a bid to realise the non-traditionalcommitments, including environment and labour, under the FTAs, Vietnam has been integrating internationallabour standards into domestic laws and put them into practice, he said.

Meanwhile, Nguyen Thi Minh Thao, head of CIEM’s Research Department on BusinessEnvironment and Competitiveness, suggested state management authorities fine-tuneinstitutions in accordance with international laws, better the business climateby ensuring business freedom and safety and reducing compliance costs toimprove capacity of domestic firms.

Vietnamese businesses engaging in the global supply chain should secure compliance with sustainable development standards. (Photo: VNA)

Enterprises should make meticulous preparation to capitalise on the market, ensurecompliance with trade partners’ import standards, and diversify export markets,she said.

Attending the workshop, Tim De Meyer, Senior Adviser on Standards Policy in theInternational Labour Organisation (ILO)’s International Labour StandardsDepartment, said that the ILO commits efforts to ensure welfare for workers andsocio-economic vitality, making contributions to sustainable development./.

VNA