Opportunities from free trade agreements

(Quang Ngai Newspaper) - Quang Ngai's goods exports have grown strongly in recent years. The above results were achieved because enterprises in the province have exploited opportunities from free trade agreements (FTAs). Currently, a number of FTAs that Vietnam has signed with countries around the world continue to be in effect, opening up opportunities for Quang Ngai's goods to reach further.

EXPAND EXPORTS

Since 2020, when the Vietnam - European Union Free Trade Agreement (EVFTA) took effect and was put into effect, the support policies of the governments of member countries have created favorable conditions and promoted the development of export markets. Quang Ngai enterprises, especially those in the fields of manufacturing electronic components, glasses, medical equipment, and automobile interiors, affirmed that EVFTA plays a role as a bridge to help many enterprises find partners to supply a large amount of goods to this market.

Ships entering Dung Quat deep-water port (Binh Son) to import export goods. Photo: TN

According to data from the Quang Ngai industry and trade sector, 2020 was the first time the province's exports reached the 1 billion USD mark (previously, in 2019, the export turnover only reached 750 million USD). The reason for the high increase in the province's export turnover is that enterprises have found new export markets and signed many orders. Notable enterprises in VSIP Quang Ngai Industrial Park, such as ShengYang Co., Ltd., producing cotton yarn, Millennium Furniture Co., Ltd., specializing in the production of cushion covers and spring mattresses; King Maker III Co., Ltd. and Properwell Vietnam Co., Ltd. These are enterprises specializing in the production of export goods and mainly exporting to European markets.

From 2020 to present, Quang Ngai's export turnover has increased steadily. In 2023, the province's export turnover reached 2.4 billion USD, an increase of 7.6% compared to 2022, exceeding the plan by 14.3%. By 2024, Quang Ngai's export turnover reached more than 2.5 billion USD, an increase of 1.1% compared to 2023, exceeding the plan by 1.3%. It is expected that the export turnover in 2025 will reach 2.74 billion USD, an increase of 8% compared to 2024.

NEW OPPORTUNITY

Our country’s promotion of cooperation with countries around the world through participation in FTAs, especially new-generation FTAs, has created great opportunities for trade activities. Vietnamese enterprises, including Quang Ngai, have many advantages in exporting goods, because tariff barriers have been reduced or eliminated. Not only bringing economic benefits, FTAs also create a dynamic trading environment, approaching international standards and practices.

General Director of Quang Ngai Sugar Joint Stock Company Vo Thanh Dang said that FTAs help the company expand cooperation and bring goods to many countries around the world. To export goods to other countries, the company prepares conditions on criteria and standards of goods, especially green production. The company realizes that this is not only an economic opportunity but also an opportunity for enterprises to implement a sustainable development strategy when accessing important standards in production, business and international trade activities. Currently, the company has been approaching and exploiting opportunities from traditional FTAs and new generation FTAs. In particular, focusing on exploiting opportunities from new generation FTAs of strategic importance such as EVFTA; Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA).

According to the Department of Industry and Trade, as of May 2024, Vietnam has signed and implemented 15 FTAs, including important FTAs such as: ASEAN Free Trade Area (AFTA), ASEAN-China Free Trade Area (ACFTA), ASEAN-Korea Free Trade Agreement (AKFTA), Vietnam-Japan Economic Partnership Agreement (VJEPA); Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA); Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)... Currently, there is 1 FTA signed but not yet in effect (Vietnam-Israel Free Trade Agreement (VIFTA); 3 FTAs are under negotiation.

THANH NHI