A seminar held in Hanoi on October 31 to discuss how to enhance the implementation of free trade agreements. The Ministry of Industry and Trade is helping provinces improve their capability in this regard. (Photo: VNA) Vietnam’s participation in several newgeneration free trade agreements has opened up opportunities for it to expandits export markets, attract foreign investment and fostered its provinces andcities’ economic development and trade.
The country’s provinces and cities have beenmaking efforts to link local exporters with foreign partners, and apprisingthem about and helping them make use of the trade deals through conferences,seminars, online resources, networking events, and other activities.
Last year, 11 more provinces exported tocountries that have signed the Comprehensive and Progressive Agreement forTrans-Pacific Partnership than did in 2021.
Similarly, 44 provinces exported to the UK bymaking use of the UK – Vietnam Free Trade Agreement in 2022, up 13 in number.
Eleven more provinces exported to markets thatare part of the European Union – Vietnam Free Trade Agreement (EVFTA).
According to experts, there is still a lot ofopportunity for Vietnam to utilise these markets since, while exports haverisen, they have not reached their potential, and the number of exportersremains low.
Several provinces have recorded very low exportsto these markets.
This is because many provinces are still notpaying sufficient attention to the FTAs, thus not enabling their fullutilisation by businesses.
Many activities to support utilisation of FTAsby businesses are carried out broadly without focusing on specific industriesor the provinces’ strengths.
According to the Ministry of Industry and Trade,while there have been many conferences and seminars to raise awareness of FTAs,their depth of information does not satisfy businesses’ demands.
There are also not enough Government workers todo justice to these activities, it admitted.
At a seminar held to discuss ways to increasethe effectiveness of local level FTA implementation held in Hanoi at the end ofOctober, Nguyen Anh Duong, Director of the Department for General EconomicIssues and Integration Studies at the Central Institute for EconomicManagement, said while many provinces have reached outto relevant authorities and experts to better help businesses makeuse of FTAs, many exporters are still focusing on immediate problems and seeFTAs as something out of their reach.
Do Thi Thuy Huong, member of the executive boardof the Vietnam Electronic Industries Association, said provinces in the Southwith a high concentration of industrial parks have a better approach to guidingbusinesses on new generation FTAs compared to regions with fewer industrialparks and remote places with few foreign companies.
FTA Index
The ministry is working on the FTA Indexwith relevant authorities and localities, which will be published bythe end of the year to assess cities and provinces’ implementation of freetrade agreements.
This will provide more information for investorsto make future investment decisions, and for the National Assembly to monitorFTA implementation and provide instructions.
Ngo Chung Khanh, Deputy Director head of the MoIT’sMultilateral Trade Policy Department, said: “Like the ProvincialCompetitiveness Index, the FTA Index will get provinces to care more about howto best use of various FTAs.”
Duong of the Central Institute for EconomicManagement said once the FTA Index is published periodically, it would driveprovinces to do better with their FTA activities, which would benefitbusinesses and the national economy.
He told Cong Thuong (Industryand Trade) Newspaper that the ministry should work with experts and localitiesto create a shared understanding of the index figures, so that relevantagencies and localities will better carry out their tasks.
The ministry is also working on a comprehensivedissemination plan together with other ministries, various other agencies andprovinces and cities to provide in-depth information on issues that businessesare interested in, and foster better co-ordination between authorities to avoidoverlapping.
It is also developing training courses toproduce experts in FTAs, and working with universities to createtraining programmes.
In the first ten months of the year, Vietnam’sexports were worth 291.28 billion USD, a 7.1% drop year-on-year.
The last two months of the year are expected tosee a sharper recovery in exports thanks to positive global economic signs./.
VNA
