Ba Ria - Vung Tau: Expanding export markets from trade agreements

According to the Department of Industry and Trade of Ba Ria - Vung Tau province, in the first 5 months of the year, the province's export turnover is estimated at 3,280.79 million USD, up 12.06% over the same period. Of which, the export turnover excluding crude oil in the first 5 months is estimated at 2,315.02 million USD, up 11.82% over the same period.

This Department assessed that most export products in the first 5 months of the year increased compared to the same period, such as: Seafood, fertilizer, plastic raw materials, plastic products, fabrics, textiles... Besides, there were still items that decreased, such as: Rubber decreased by 4.25%; fibers, textile yarns of all kinds decreased by 14.46%.

Workers of Ngoc Tung Company Limited process squid for export - Photo: Dong Hieu

Ms. Vu Bich Hao, Deputy Director of the Department of Industry and Trade of Ba Ria - Vung Tau province, said that Asia is still the main export market, accounting for 68.04% of the total export turnover of the province, up 20.09% over the same period, reaching 2,232.28 million USD. The European market accounts for 12.9% of the total export turnover of the province, up 30.11% over the same period, reaching 423.08 million USD. The American market accounts for 6.4% in terms of proportion, up 4.98% over the same period, reaching 209.81 million USD. The African market accounts for 0.12% in terms of proportion, up 311.54% over the same period, reaching 4.02 million USD. Other markets account for 12.55%, with 411.6 million USD, down 24.17%.

Ms. Vu Bich Hao said that the EU is a market with high demands on quality, food safety and technical barriers. Therefore, the EU's agricultural management policies are strict, especially the EU's technical barriers to agricultural and food products tend to be increasingly strict. In addition, the cost of transporting and preserving goods exported to the EU market is high, leading to increased product prices and difficulty in competing with goods from countries geographically close to the EU.

“To date, the EU has had a total of 42 FTAs ​​in effect with 79 partners, and granted GSP preferential treatment to 67 developing and least developed countries. In addition, Vietnam's export goods also have to compete fiercely with Chinese goods - the country that exports the most to the EU to date. China and many countries that are enjoying tariff preferences in the EU have similar export product structures to Vietnam, leading to a high level of competition,” said the Deputy Director of the Department of Industry and Trade of Ba Ria - Vung Tau province.

According to Ms. Hao, Vietnam's signing and participation in new-generation FTAs ​​has a great impact on the economy through expanding import and export markets. Accordingly, import and export turnover to partner countries will increase, consolidating traditional markets, opening up many potential markets on the basis of promoting relations with important economic strategic partners. Export turnover of enterprises in Ba Ria - Vung Tau province to countries participating in the RCEP Agreement accounts for about 60% of the total export turnover of the province, mainly to the Northeast Asian and ASEAN markets. In particular, the Australian market is growing at a rate of up to 200%.

Sewing backpacks and handbags for export at GT Line Asia Co., Ltd. - Photo: Tra Ngan

Since the EVFTA and UKVFTA came into effect, the import and export turnover of enterprises in Ba Ria - Vung Tau province in the European market and the UK market has increased significantly. The export market to European countries in 2023 doubled that of 2021, the UK market increased by 65.7% mainly in footwear, sports equipment, and seafood.

As for other markets in the network of FTAs ​​that Vietnam participates in, there is remarkable growth.

“Although the Australian, European and UK markets are not yet major export markets of the province, with the potential, advantages and orientation in attracting investment and trade, the effective implementation of EVFTA, UKVFTA, RCEP Agreement, the proportion of import and export to these markets in the total import and export turnover of enterprises in Ba Ria - Vung Tau province will have positive changes in the coming time” , Deputy Director of the Department of Industry and Trade of Ba Ria - Vung Tau province expected.

To support export enterprises in developing markets in the period up to 2030, the Deputy Director of the Department of Industry and Trade of Ba Ria - Vung Tau province said that the Department will continue to promote the implementation of 3 strategic breakthroughs: Training human resources, institutions, developing infrastructure, especially transport infrastructure to reduce logistics costs; supporting enterprises to take advantage of incentives from FTAs; effectively implementing the CPTPP agreement and other free trade agreements such as EVFTA, UKVFTA.

In addition, promote trade promotion, regularly connect with diplomatic missions and Vietnamese Trade Counselors abroad; Contact and exchange information with the Trade Promotion Department (Ministry of Industry and Trade) to grasp information about export markets to support the province's export enterprises. Support the development and access to information on import and export markets, policy information, and technical standards of foreign markets.

Along with that, implementing the Project on goods export program until 2025 and the Import-Export Strategy until 2030; Project "Promoting Vietnamese Enterprises to directly participate in goods distribution networks in foreign markets"; Integration Program in 2024.

The focus is on promoting administrative reform, creating a favorable environment for enterprises to produce and do business. Supporting enterprises in digital transformation, interest rates and credit capital, innovation in science and technology, machinery and equipment, green production and sustainable development.

Source: https://congthuong.vn/ba-ria-vung-tau-mo-rong-thi-truong-xuat-khau-tu-cac-hiep-dinh-thuong-mai-327504.html