Take opportunities from FTAs to deeply participate in the supply chain

VCN - Free trade activities not only open up opportunities for trade and investment cooperation but also attract resources and transfer modern production technology, helping businesses participate more deeply in the advanced production chains of large enterprises in the world.
Taking advantage of EVFTA: Taking advantage of EVFTA: "It's impossible for everyone's house to shine brightly"
EU sees Vietnam as vivid demonstration of EVFTA success EU sees Vietnam as vivid demonstration of EVFTA success
Vietnam’s textiles, garments yet to fully tap FTAs’ advantages and potential Vietnam’s textiles, garments yet to fully tap FTAs’ advantages and potential
Take opportunities from FTAs to deeply participate in the supply chain

FTA helps expand export markets. Photo: N.T

Wide export door

According to the assessment of the Department of Multilateral Trade Policy (Ministry of Industry and Trade), in 2023, the conclusion of FTA negotiations with Israel and the signing of the record on the conclusion of conditional negotiations with the UAE have opened the door to foreign markets of Middle Eastern countries with a GDP of about 2,000 billion USD.

Up to now, Vietnam has successfully signed 16 FTAs, making Vietnam one of the most open economies and has trade relations in the free trade area with more than 60 economies.

In addition, the implementation of signed FTAs has been expanding the market door for exported goods, providing an opportunity for Vietnam to connect and participate more deeply in the value chain and global production network.

For example, for CPTPP, the rate of using CPTPP Certificates of Origin (CPTPP C/Os) of most of Vietnam's key export products continues to grow positively and significantly compared to previous years. For example: rice increased by over 2,503%, cassava and cassava products increased by over 3,648%, machinery, equipment, tools and other spare parts increased by 134.68%, chemicals and chemical products increased by 66.96%.

Or in the implementation of the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA), Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department, said that 2021 - one year after the UKVFTA takes effect, growth from both directions increased very strongly. In particular, exports from the UK to Vietnam grew by 24%, exports from Vietnam to the UK increased by 19%. In 2023, although exports to many major markets decreased significantly, exports to the UK still increased by about 1.9%, imports from the UK to Vietnam still growed by nearly 3%. Notably, a key export industry of Vietnam to the UK still maintains double-digit growth momentum.

On the contrary, Mr. Bob Fletcher, Director of Global Trade and Customs Services, Deloitte Vietnam, said that the agreement brings significant benefits to British businesses in Vietnam, including tariff reduction and expand market access. This helps British products become more competitive in the Vietnamese market and the amount of goods exported from the UK to Vietnam also increases significantly.

In particular, the UKVFTA Agreement also creates a more transparent and accessible business environment for British businesses planning to establish, invest, and do business in Vietnam. Currently, the UK is ranked 15th out of 143 countries with direct investment activities in Vietnam.

Mr. Tran Van Hieu, Director of DACE Agricultural Development and Environmental Consulting Company Limited, said that after Brexit, the volume of export goods of businesses to this market decreased from 10% to 2-3%. However, immediately after the UKVFTA Agreement, exports grew again. Up to now, the amount of goods exported to the UK accounts for 9-10%, and has recovered to the previous level.

Besides, according to Mr. Bob Fletcher, Vietnamese businesses also benefit when participating in cooperation in technology transfer, supply chain and brand building with British businesses. Vietnamese businesses can take advantage of the network and international market expertise of British businesses to expand exports to new markets, diversify customers and increase export revenue. Besides, through cooperation, Vietnamese businesses have the opportunity to access advanced technologies, thereby improving competitiveness and productivity.

​Take advantage of market demand

The benefits of increasing export value are also clearly shown in the implementation of the CPTPP Agreement. Mr. Bui Tuan Hoan, Head of the Americas Department, Europe - Americas Market Department (Ministry of Industry and Trade) said that since the CPTPP Agreement took effect, Vietnam's exports to CPTPP member countries in the Americas region grow strongly. There are 4 American countries participating in CPTPP: Canada, Mexico, Peru and Chile, of which Chile has a bilateral FTA with Vietnam; Canada, Mexico and Peru are three markets that have FTA relations with Vietnam for the first time, so the tariff incentives in CPTPP have a very positive impact on Vietnam's export activities to these markets.

From a market perspective, this is a market with a lot of potential and room for Vietnamese export goods. For example, Canada is an import-dependent market with a total import turnover of about 500 billion USD/year, belonging to the group of 15 countries with large import turnover in the world. Although the import scale is only equivalent to 10% of the US market, the purchasing power as well as the average import turnover per capita is twice that of the US. The need to import consumer food products is very diverse because Canada has many immigrants and each community has different tastes and preferences.

Similarly, the Mexican market with a large population of about 130 million people has an annual import demand of about 400 billion USD. Mexico is considered the gateway for Vietnamese goods to enter Central and North America and the back door to enter the US market.

According to the European - American Market Department, Peru is also a relatively suitable market for the level, scale and approach of Vietnamese businesses because 75% of Peru's import-export enterprises are medium-sized enterprises. In particular, from the Peruvian market our goods can penetrate into other neighboring countries such as Colombia, Ecuador, Peru, Bolovia and the very large West of Brazil.

It can be seen that FTAs are creating opportunities for Vietnamese businesses to increase exports, while creating competitive pressure for businesses in the local area. The Department of Multilateral Trade Policy said that in the coming time, it will continue to effectively implement the signed FTAs; simultaneously, actively participate in negotiating ASEAN - Canada FTA, Vietnam - EFTA FTA, upgrading ASEAN - China FTA to 3.0, ASEAN - India FTA and completing Vietnam - UAE FTA negotiations with a focus on removing non-tariffs barriers on Vietnamese export goods, continuing to expand export opportunities for Vietnamese goods.

By Ngoc Linh/Phuong Linh

Related News

For sustainable development of cross-border e-commerce

For sustainable development of cross-border e-commerce

VCN - E-commerce can propel digital economic goals further, specifically online exports. Online exports not only help businesses expand their market reach but also contribute to bringing Vietnamese brands to consumers in many markets worldwide.
Seafood businesses face difficulties with S/C to export to Europe

Seafood businesses face difficulties with S/C to export to Europe

VCN - Seafood enterprises have encountered many difficulties and shortcomings - especially related to the certificate of origin (S/C), leading to the fact that enterprises cannot obtain the necessary documents for exporting seafood shipments to Europe.
Allocation of import sugar tariff quota via auction in 2024

Allocation of import sugar tariff quota via auction in 2024

VCN - The allocated import tariff quota for sugar (HS code 17.01) through the auction method in 2024 is 126,000 metric tons.
Many "billion-dollar" enterprises and corporations carry out procedures at Yen Phong Customs

Many "billion-dollar" enterprises and corporations carry out procedures at Yen Phong Customs

VCN - According to the Customs Branch managing Yen Phong Industrial Parks, Bac Ninh Customs Department, there are currently nearly 100 enterprises regularly carrying out customs procedures at the unit, including many "billion-dollar" enterprises and corporations.

Latest News

Vietnam

Vietnam's coconut exports to rise remarkably thanks to shipments to China

Fresh coconuts, a burgeoning contributor to Vietnam's agricultural exports, are poised to make a substantial impact on the nation's economy through increased shipments to China, according to officials.
Wood industry witnesses positive market signals

Wood industry witnesses positive market signals

The final months of the year are when consumers typically renovate and redecorate their homes in preparation for the New Year, providing a significant boost in export orders for the wood industry.
Vietnam’s aquatic product exports reel in positive forecasts to year end

Vietnam’s aquatic product exports reel in positive forecasts to year end

Vietnam's aquatic product exports are on track to hit a target of 9.5 billion USD by the end of this year, buoyed by sustained positive growth in recent months, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam-Sweden Business Forum 2024 opens

Vietnam-Sweden Business Forum 2024 opens

The Vietnam-Sweden Business Forum 2024 was held in celebration of 55 years of bilateral diplomatic relations by the Vietnamese Embassy and the Vietnam Trade Office in Sweden, and FPT Corporation in Stockholm on September 6.

More News

Industrial real estate - "Magnet" attracting foreign capital

Industrial real estate - "Magnet" attracting foreign capital

VCN - Looking back at the development journey over the past 30 years, it can be affirmed that the model of industrial parks and economic zones has been playing an important role, as a driving force for growth and the process of industrialization and modernization of the country; a channel to attract investment resources, especially foreign direct investment (FDI), contributing to improving the business environment and enhancing competitiveness, ensuring sustainable development.
New markets help fruit exports grow to record revenues

New markets help fruit exports grow to record revenues

Vietnam's fruit export revenue hit 4.63 billion USD in the first eight months of 2024, representing an increase of 30.6% compared to the same period last year, thanks to the opening of several key markets.
Export-import through Mong Cai int’l border gate grows 24%

Export-import through Mong Cai int’l border gate grows 24%

The total export-import turnover through the Mong Cai International Border Gate in the northern province of Quang Ninh in the first eight months of 2024 reached 2.64 million USD, marking a 24% increase year-over-year, while 265 new businesses began operation in the area.
Seafood enterprises shift business and export

Seafood enterprises shift business and export

VCN - Facing difficulties and challenges caused by the global economic downturn, many seafood businesses have promptly adjusted their production, business and export strategies.
Centre of raw materials for textiles and footwear expected to be launched in 2025

Centre of raw materials for textiles and footwear expected to be launched in 2025

The Ministry of Trade on Thursday discussed a proposal to develop a centre to create, store and trade raw materials for textile and leather footwear production.
Binh Duong’s export revenue rises 11.3%

Binh Duong’s export revenue rises 11.3%

Binh Duong province, a key industrial hub in southern Vietnam, shipped 22.5 billion USD worth of products abroad in January-August, a year-on-year increase of 11.3%.
Vietnamese vegetables, fruits promoted at Asia Fruit Logistica

Vietnamese vegetables, fruits promoted at Asia Fruit Logistica

Nineteen Vietnamese enterprises are attending Asia’s premier fresh fruit and vegetable trade show - Asia Fruit Logistica, which is underway in Hong Kong (China) from September 4-6.
The key to opening new doors for agricultural enterprises

The key to opening new doors for agricultural enterprises

VCN - Sustainable development is the future of agricultural enterprises. Enterprises that have made early changes to this trend are receiving positive support from international investment funds, not only in terms of capital but also in terms of strategy, market, and supply chain.
Note for businesses when converting green and digital

Note for businesses when converting green and digital

VCN - Green transformation and digital transformation have been identified by businesses as a mandatory path if they want to develop long-term. However, there are many issues that businesses need to pay attention to right from the start of the transformation if they want to achieve efficiency.
Read More

Your care

Latest Most read
Vietnam

Vietnam's coconut exports to rise remarkably thanks to shipments to China

Fresh coconuts, a burgeoning contributor to Vietnam's agricultural exports, are poised to make a substantial impact on the nation's economy through increased shipments to China, according to officials.
Wood industry witnesses positive market signals

Wood industry witnesses positive market signals

The final months of the year are when consumers typically renovate and redecorate their homes in preparation for the New Year, providing a significant boost in export orders for the wood industry.
Vietnam’s aquatic product exports reel in positive forecasts to year end

Vietnam’s aquatic product exports reel in positive forecasts to year end

Vietnam's aquatic product exports are on track to hit a target of 9.5 billion USD by the end of this year, buoyed by sustained positive growth in recent months, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam-Sweden Business Forum 2024 opens

Vietnam-Sweden Business Forum 2024 opens

The Vietnam-Sweden Business Forum 2024 was held in celebration of 55 years of bilateral diplomatic relations by the Vietnamese Embassy and the Vietnam Trade Office in Sweden, and FPT Corporation in Stockholm on September 6.
Industrial real estate - "Magnet" attracting foreign capital

Industrial real estate - "Magnet" attracting foreign capital

VCN - With outstanding advantages such as: stable macro economy, good inflation control, positive and impressive economic growth in a difficult context; improved investment and business environment in Vietnam..., the confidence of FDI investors in Vietnam
Mobile Version