Strategic Trade Control: Catching the 'Wave' of Supply Chain Shift

Strong " commitment " to major trading partners

The Ministry of Industry and Trade is widely soliciting opinions from agencies, organizations and individuals on the draft Decree on strategic trade control. This Decree applies to traders exporting, temporarily importing for re-export, transshipment, transshipment and transit of dual-use goods; and relevant agencies and organizations.

According to the explanation of the Ministry of Industry and Trade, in order to ensure technology transfer activities and expand the production scale of high-tech products, major trade partners have proposed that Vietnam research and develop a strategic trade control mechanism to improve technology control capacity, increase the ability to enforce intellectual property rights protection, and minimize the possibility of these source technologies being transferred to third countries without the consent of the exporting country.

Building an effective strategic trade control mechanism creates a solid foundation for increasing high-tech imports. Photo: VNA

Speaking to the Industry and Trade Newspaper, Mr. Le Van Hiep, General Director of Miza Nghi Son Company Limited, said that the urgent development and promulgation of a Decree on strategic trade control is extremely necessary in the current context, especially when Vietnam is focusing all resources to build a modern, sustainable and highly competitive economy in the international arena. At the same time, building an effective strategic trade control mechanism also creates a solid foundation for increasing the import of high technology and source technology from this market, thereby helping to balance the trade balance.

According to Mr. Le Van Hiep, Vietnam is the center of attracting businesses to move out of China, thanks to relatively low wages and half of the population under 35 years old, along with many preferential policies to attract investment. "The context of global supply chains is fluctuating strongly, especially with the increase in high-tech investment in Vietnam - from electronics, computers to semiconductors, the requirement for a legal framework to control strategic trade becomes urgent. This is one of the prerequisites for major partners to feel secure when expanding cooperation in technology transfer, large-scale investment and implementing long-term trade agreements, " Mr. Hiep stated.

In addition, Mr. Le Van Hiep commented that in recent times, technology transfer through projects of foreign direct investment (FDI) enterprises in Vietnam has achieved certain results. Many new and modern technologies have been imported into our country. Thereby, many new products with modern technology have been created, contributing to increasing the production capacity and competitiveness of Vietnamese goods, and shifting the economic structure towards modernity.

However, in addition to the achieved results, Mr. Le Van Hiep said that the technology transfer between FDI enterprises and domestic enterprises did not take place as expected. This situation is not only the "fault" of FDI investors, or the "fault" of Vietnamese enterprises. The broader problem lies in institutions and policies.

" Therefore, building an effective strategic trade control mechanism will promote increased imports and transfer of high technology and source technology from major markets and trade partners, thereby helping to balance the trade balance " - Mr. Hiep emphasized.

Sharing with reporters of the Industry and Trade Newspaper, Mr. Tran Duc Nghia, Chairman of the Hanoi Logistics Association, assessed that the Ministry of Industry and Trade's announcement of the draft Decree on strategic trade control on the Government's electronic information portal to collect public opinions is very timely.

Mr. Nghia said that this decree will be a strong "commitment" from Vietnam to major trade partners such as the United States and the EU, that Vietnam is ready to comply with international standards in technology control, protecting intellectual property rights and preventing the risk of source technology leakage to third countries without permission.

“ This is a prerequisite for Vietnam to not only maintain its export momentum, but also enhance the confidence of the world's leading technology corporations, creating leverage to attract many high-quality FDI projects, ” Mr. Nghia affirmed.

Building a strategic trade control mechanism to enhance technology control capacity. Photo: VNA

In the context that Vietnam is actively implementing many specific solutions to move towards a harmonious and sustainable trade balance with many trade partners, according to Mr. To Hoai Nam - Permanent Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises, the Ministry of Industry and Trade's announcement of the draft Decree on strategic trade control on the Government's electronic information portal to collect public opinions is very timely.

“The Decree is expected to ensure technology transfer activities and expand the production scale of high-tech products. At the same time, it will increase the ability to enforce intellectual property rights protection and minimize the possibility of source technologies being transferred to third countries without the consent of the exporting country, ” said Mr. Nam.

Comply with global " rules of the game " , access to advanced technology

The strategic trade control mechanism will help Vietnam improve its position in the global supply chain. On the other hand, Mr. Tran Duc Nghia pointed out that instead of just being a place for processing and assembling, Vietnam can completely rise to become a center for high-tech production and innovation in the region. At the same time, he hopes that this decree will lay the foundation for an independent and self-reliant economy. Vietnam cannot forever depend on imported technology, but must proactively develop its own high-tech ecosystem.

Besides expecting that the Decree on strategic trade control is not only a legal framework, but also an opportunity for Vietnam to make a breakthrough, Mr. Tran Duc Nghia said that strategic trade control should not only stop at managing technology import and export, but also need accompanying policies to promote research, development and technology transfer in the country.

" If we take advantage of this opportunity, Vietnam can create technology businesses of global stature, reduce dependence on foreign countries and increase added value for the economy," said Mr. Nghia.

In addition, according to Mr. Tran Duc Nghia, the decree needs to be designed with a long-term vision, ensuring flexibility, feasibility and transparency. If the regulations are too rigid, businesses will have difficulty accessing technology and expanding production. On the contrary, if they are loose, Vietnam will face the risk of being underestimated in terms of technology control capacity, directly affecting foreign investment flows.

Mr. To Hoai Nam also emphasized that in order to meet practical requirements, the decree needs to provide regulations that are consistent with international standards and regulations and other legal documents of Vietnam. Accordingly, the decree needs to be a breakthrough, ensuring economic security while not becoming a barrier to the development of domestic enterprises.

“We need an effective control mechanism that is not a closed system, but an open door - where businesses willing to comply with global rules can access advanced technology more conveniently, ” said Mr. To Hoai Nam.

The draft Decree on Strategic Trade Control stipulates that dual-use goods are items, software and technology that can be used for both civilian and military purposes or related to the development, production, processing, operation, maintenance, storage, detection, identification or dissemination of weapons of mass destruction or their means of delivery.

Quynh Nga - Bao Thoa

Source: https://congthuong.vn/kiem-soat-thuong-mai-chien-luoc-don-song-dich-chuyen-chuoi-cung-ung-381316.html