FTAs offer fresh impetus to fulfill export target of US$300 billion

Despite complicated developments relating to the novel coronavirus (COVID-19) pandemic hitting production and business activities, Vietnamese exports during the opening nine months of the year have maintained positive growth.

According to figures compiled by the Ministry of Industry and Trade (MoIT), the export turnover increased by 4.2% to US$202.86 billion against the same period from last year.

In total, 30 export items recorded a turnover reaching more than US$1 billion, whilst five commodities in the processing and manufacturing industries grossed over US$10 billion.

Most notably, the export growth of the domestic economic sector enjoyed a boost of 20.2%, therefore exceeding that of foreign invested enterprises, while trade surplus hit a record high of approximately US$17 billion.

There were a number of positive signs recorded in export activities during August and September as a result of the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA), with export growth witnessing an increase of 1.7% over the corresponding period from last year.

Furthermore, more than 20,000 sets of certificates of origin (C/O) have been issued for export shipments, with their value at over US$900 million to 27 EU member countries.

Economist Nguyen Tri Hieu emphasized that Vietnamese success in containing the novel coronavirus (COVID-19) pandemic, coupled with the implementation of 13 FTAs ​​with several countries, have provided impetus for export growth. This is largely due to a number of key export items in the agriculture, seafood, textile, footwear, and electronics fields enjoying substantial tariff reductions.

According to experts, slow export growth globally caused by the negative impact of COVID-19 is anticipated to provide an opportunity for Vietnamese goods to make further inroads into the international market thanks to tax incentives.

With regard to seizing upon opportunities of the EVFTA, Nguyen Dinh Tung, general director of Vina T&T Group, said that the company has built growing areas consisting of 300 hectares specifically for fruit, all of which has been certified to GlobalGAP standards.

This has helped the company’s fruit products, such as dragon fruit, longans, mangoes, grapefruit, and rambutan, to penetrate the EU market, along with other markets with high standards.

Moreover, Vina T&T Group also has plans to export herbs, chilis, eggplants, and lemon to the EU in order to meet huge demand within the market. Indeed, the company is aiming to fulfill the export target of more than US$7.7 million to the fastidious market, representing a year-on-year increase of 20%.

Phan Van Chinh, director of the Import-Export Department under the MoIT, advised local businesses to improve their product quality, ensure food hygiene standards, and meet rules of origin requirements set by EU importers.

Local firms have also been urged to devise a long-term vision and map out a coherent business strategy for each specific product in each market segment, while also gaining insights into the consumer tastes in a bid to boost exports to the stringent market.

As a means of meeting the export target of US$300 billion for this year, the MoIT has developed a trade promotion scheme for the 2020- 2025 period.

This plan will see the ministry select a number of products that have potential for development in markets that have signed FTAs with the country, while also supporting enterprises to venture into fresh markets and seek customers through trade online exchange platforms.