Enterprises should take advantage of incentives from FTAs to expand export markets.

Vietnamese enterprises are facing a golden opportunity to break through, as free trade agreements (FTAs) open wide doors for Vietnamese goods to be exported. To make the most of this advantage, enterprises need to proactively grasp information, invest in improving production capacity and constantly innovate to compete effectively in the international market.

Giá cước vận tải tăng mạnh gây bất lợi cho hoạt động xuất khẩu.

Sharp increase in freight rates is detrimental to export activities.

Prices of imported raw materials are climbing.

In 2024, following the growth momentum of 2023, economic experts have determined that Vietnam's export markets will continue to expand in many countries, especially large markets belonging to countries participating in the Free Trade Agreement (FTA) and the Vietnam - European Union Free Trade Agreement (EVFTA). These are considered potential markets and play an important role in supplying Vietnam's export goods.

According to Master Nguyen Anh Duong - Head of the General Research Department, Central Institute for Economic Management (CIEM), the recovery of the global economy and the network of Auto Trade Associations have opened up many new opportunities to increase exports, while also being linked to the recovery of supply chains in the Asian region.

Ms. Tran Thi Thanh Tam - Director of the Center for Supporting Small and Medium Enterprises under the Vietnam Federation of Commerce and Industry said that currently, export turnover to most markets and major trading partners of our country has recovered positively and achieved high growth. China remains the market with the largest two-way trade relations of our country, reaching 168.5 billion USD, up 21.1% (29.3 billion USD). Import and export turnover to ASEAN, Korea, EU and Japan in the first 10 months of 2024 also increased compared to the same period in 2023.

However, Ms. Thanh Tam said that despite achieving many positive results, in the last months of 2024, export activities in general and exports to key markets such as Europe and America in particular will continue to have both advantages and challenges.

In the context of the increasingly complex and difficult global geopolitical situation, with many methods and risks increasing, especially political tensions and armed conflicts in Europe and the Middle East, the world is still facing dangerous impacts from natural disasters and climate change. These factors have been slowing down the economic recovery, creating global economic growth, trade and investment.

"Developed countries are increasingly paying attention to sustainable development and consumer safety issues, thereby setting new, stricter standards and regulations on supply chains, raw materials, labor and the environment for imported goods. In addition, shipping rates remain high, with no signs of cooling down. In addition, the negative impacts of the Yagi supertanker on domestic production activities continue to cause significant difficulties and challenges for our country's export activities," Ms. Thanh Tam shared.

According to Ms. Thanh Tam, the risk of supply chain disruption and sharp increases in freight rates are detrimental to export activities. In the coming time, Vietnam's export goods will face high prices of imported raw materials, fuels and materials, which will affect export prices. Moreover, there are currently many risks in payment and exchange rate risks that have occurred to Vietnamese enterprises.

Businesses promote innovation

Mr. Lam Duc Thuan - Deputy Head of the Management Board of Industrial Parks of Hung Yen province commented that with political stability and the correct policies of the Party and State, Vietnam has achieved great achievements in socio-economic development, enhancing its international position. "Enterprises need to seize this opportunity, come up with innovative solutions, the right direction and practical to approach the market, improve competitiveness, and meet the needs of the international market," Mr. Thuan emphasized.

Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) encouraged businesses, especially small and medium enterprises, to develop long-term business plans, focusing on improving competitiveness in the context of market opening. Businesses should take advantage of incentives from FTAs to expand export markets, while investing in human resources and applying digital technology to improve professionalism and competitiveness.

In addition, Mr. Hai also noted the importance of developing contingency plans to deal with potential risks in the school such as commercial fraud or price fluctuations.

According to MSc. Nguyen Anh Duong, businesses need to proactively research new regulations in the international market, especially those related to sustainable development such as the carbon border adjustment mechanism (CBAM) or the EU anti-forest regulation (EUDR). Businesses should also develop new business models such as circular economy, digital economy and propose appropriate technical support from international activities.

On the State side, Mr. Duong emphasized the need to support businesses in building strategies to effectively utilize FTAs, while also researching solutions to adjust policies in line with new development trends.

To reduce costs and increase competitiveness, Mr. Ngo Khac Le - Deputy General Secretary of the Vietnam Logistics Service Association (VLA) recommends that import-export enterprises use flexible warehouse services such as bonded warehouses, shared warehouses (fulfillment centers) and apply green logistics solutions. This not only reduces emissions and energy consumption but also speeds up the processing of goods.

Mr. Le also encouraged businesses to optimize freight transport by combining multiple modes of transport such as sea, air, road and rail.

Mr. Tran Thanh Hai forecasts that from now until the first quarter of 2025, Vietnam's exports will continue to maintain good growth, helping to reduce inflation in major markets and recover demand and purchasing power. Effectively implemented trade agreements will also help increase turnover in markets with FTAs, new FTAs coming into effect...

"With the stability of domestic production and abundant resources, Vietnamese enterprises are facing great opportunities to expand international markets. However, to effectively take advantage of this benefit, enterprises need to promote innovation, proactively adapt to new requirements and improve competitiveness," said Mr. Tran Thanh Hai.

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