Effectively exploiting free trade agreements

In the context of the current world economy with many potential risks and instabilities, especially the protectionist policies of key export markets for Vietnamese goods, taking full advantage of signed free trade agreements and proactively expanding new partners is the strategic direction of our country in general and the domestic business community in particular.

Opportunity in challenge

According to Mr. Alexander Christopher Falter, General Director of Ecco Vietnam Co., Ltd. (Bau Bang Industrial Park), exploiting the opportunities from the Free Trade Agreement (FTA) that Vietnam participates in the context of market fluctuations is an inevitable direction to avoid dependence on one market. This is not only a solution to maintain export growth momentum, but also an opportunity for enterprises to access potential markets, diversify supply chains and improve competitiveness for domestic enterprises.

Production activities at Lam Viet Joint Stock Company

While foreign-invested enterprises are taking advantage of opportunities from FTAs, domestic enterprises still have many bottlenecks that need to be resolved to adapt to the new situation. Regarding the reciprocal tax policy that the US Government has just announced, Mr. Nguyen Quang Vu, Chairman of the Binh Duong Leather and Footwear Association, said that this is a big challenge for domestic enterprises, but it is also an opportunity for enterprises to restructure the production process, increase efficiency in cost reduction, especially market diversification. With the new US tax policy increasing costs, enterprises will have to have solutions to continue to maintain production as well as further optimize the production process, helping to rebalance tax costs that may increase in the near future; at the same time, promote exports to markets participating in FTAs with Vietnam.

Regarding wood industry enterprises, Mr. Nguyen Thanh Lam, Director of Lam Viet Joint Stock Company (Tan Uyen City), said that when participating in FTAs, when taxes are reduced to 0% or at a very low level, member countries will apply high standards and regulations to imported goods, creating many technical barriers. With the European Union market, to meet the strict requirements of this market, enterprises must first grasp what customers require, develop plans, and apply digital transformation to manage and administer in the direction of transparent processes.

Ms. Phan Le Diem Trang, Vice President of Binh Duong Textile and Garment Association, shared that fashion products are currently exported to many markets around the world. In the context that the US Government has just announced new reciprocal tariffs, to effectively implement FTAs, businesses need to be supported with comprehensive solutions, guiding businesses in the process of sustainable development, from building green criteria to the entire process and implementation program; supporting businesses to improve human resources.

Effective business support

According to Mr. Pham Van Xo, Chairman of Binh Duong Import-Export Association, Vietnam has participated in many FTAs. These agreements help enterprises access international markets with reduced or exempted taxes. However, many small and medium enterprises currently do not have enough capital capacity and the ability to compete with larger enterprises and foreign competitors when participating in the international market. Most small and medium enterprises do not have a specialized legal department, leading to a lack of understanding of legal regulations, commercial contracts, and intellectual property rights, making them vulnerable to risks in international transactions.

More specifically, Mr. Nguyen Quang Vu said that the leather shoe industry is deeply integrated into the world market. Previously, the requirements for sustainable development were mainly set by brands, but now they have been legalized. Major export markets such as Japan, the European Union, etc. require products to meet very high standards. Currently, the State has many policies to support businesses, but when implemented in practice, they are entangled for many reasons. For example, accessing the interest rate support package, the procedures are too complicated, to get a loan to support businesses, they must be accounted for independently from the business capital and this loan amount only supports the contents of this loan package and cannot be used for other things. This makes businesses very passive.

Ms. Phan Thi Khanh Duyen, Deputy Director of the Department of Industry and Trade, emphasized that in order to continue promoting the export of goods, in addition to taking advantage of FTAs, in the coming time, the industry and trade sector will continue to make efforts to support enterprises in finding new markets, potential markets, improving competitiveness, measures, solutions, and policies to support enterprises, especially small and medium enterprises. One of the important tasks of the industry and trade sector is to continue to coordinate the implementation of support programs to improve the competitiveness of enterprises through trade promotion, connecting with foreign-invested enterprises, accessing technology, supporting human resource training, supporting management, credit, etc.

Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, said that it is expected that by the end of 2025, the ecosystem for exploiting FTAs can come into life. It is expected that by then, the difficulties in exploiting opportunities from FTAs will be partly resolved. The issued ecosystem will mobilize resources from ministries, branches, and associations, creating a more effective concentration of resources for exploiting FTAs. Sectors and localities need to continue to raise awareness and promote FTAs; develop detailed action plans; have specialized support solutions; connect links in the production and export chain from farmers, enterprises to banks, logistics and the government.

TIEU MY - THANH TUYEN

Source: https://baobinhduong.vn/khai-thac-hieu-qua-cac-hiep-dinh-thuong-mai-tu-do-bai-2-a345607.html