FTAs vital in helping local goods penetrate demanding markets

One year on from the enforcement of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), two-way trade between Vietnam and Canada in 2019 recorded remarkable growth of US$ 4.8 billion, representing an increase of 23.3% compared to figures from 2018.

Last year, despite facing the adverse impact of the novel coronavirus (COVID-19) pandemic coupled with the global economic downturn, bilateral trade recorded a rise of 6.6% to US$5.1 billion, with key export items such as footwear, electronic products and components, seafood, and wooden products.
Minister of Industry and Trade Tran Tuan Anh notes that Vietnamese goods have successfully penetrated several hard-to-crack markets, especially those which Vietnam has signed FTAs with, alongside emerging markets such as Mexico and Chile.

The statistics compiled by the MoIT indicate that the rate of using certification of origin (C/O) forms to enjoy preferential tariffs in line with FTAs has reached between 30% and over 80%, a factor which has significantly contributed to maintaining sustainable growth in the bilateral trade balance with markets that the country has signed FTAs with.

Furthermore, a fresh wave of investment from foreign-invested enterprises into Vietnam has shown rapid increases, serving to improve production capacity, enhance technological levels locally, sharpen competitiveness, and facilitate access to global supply chains for local firms.

The MoIT has plans to continue finetuning the legal system whilst effectively disseminating information on FTAs in order to allow businesses to fully capitalise on opportunities from them, MoIT Minister Anh notes.

At present, the country has conducted negotiations on 17 FTAs, of which 14 FTAs have been signed and come into force, and the remaining three are still under negotiation.