Negotiating actively FTAs, increasing benefits for businesses

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade).

Could you please evaluate export activities in the first quarter of 2024?

Currently, the production and business situation is developing quite well, thereby contributing to the recovery of export growth. In particular, many of Vietnam's major export markets have also recovered, overcoming the recession period. The first quarter of 2024 is having the highest growth rate, this is an achievement that speaks to the recovery of production as well as the efforts of Vietnamese businesses.

Could you give a more specific analysis of the cause of this recovery?

First of all, the foreign market context is showing positive signs. In the US market, there are moves to cut interest rates, thereby stimulating consumer demand again and expanding import-export needs of businesses. The EU region has also overcome the recession period, the inventory of the previous period has run out, this region has begun to increase imports again.

In addition, the Government's solutions to support businesses, especially solutions related to tax cuts and administrative reform efforts, have also helped Vietnamese businesses expand better production. Along with that, in the past period, Vietnam has actively attracted investment to catch the wave of shifting supply chains from China. Vietnam has received part of it, thereby creating a better production foundation.

How is the signing and implementation of Free Trade Agreements (FTA), expanding and diversifying export markets, and which mayors are the Ministry of Industry and Trade actively negotiating FTA agreements?

Currently, Vietnam has signed 16 FTAs. Basically, all FTA markets have very good results and Vietnam's major trading partners are all in FTAs. The Ministry of Industry and Trade is trying to find the possibility to sign FTAs with regions that do not have FTAs such as Latin America, Middle East - South Asia or Africa to continue to improve and enhance export efficiency.

In addition to the 16 FTAs that have been signed and are being implemented, the Ministry of Industry and Trade is negotiating three other agreements, specifically FTAs between Vietnam and the European free trade area (EFTA) including four countries in Europe and Switzerland, Norway, Liechtenstein and Iceland; FTA between ASEAN - Canada; and the Comprehensive Trade Partnership Agreement between Vietnam and the United Arab Emirates (UAE). As for the Vietnam FTA with the UAE, this is an FTA that was negotiated quickly, when the two sides realized the potential for development cooperation.

Could you please tell us about the solutions to maintain export performance in the coming months and achieve the growth target of 6% this year?

The Ministry of Industry and Trade has proposed many solutions, including efforts to continue to expand FTA negotiations and disseminate the benefits and incentives of signed agreements so that businesses can perform better.

In addition, innovating trade promotion activities and focusing on digital transformation programs in trade promotion and e-commerce activities helps businesses have channels to open up the export of goods. At the same time, review legal documents, simplify and reduce business conditions to help export businesses have more room to develop.

Thank you Sir!