| FTAs have helped Vietnamese goods penetrate large markets around the world. FTA implementation promotes Vietnam's economic reform achievements. |
FTAs actively promote trade growth
Vietnam is a member of 16 free trade agreements (FTAs), of which 15 FTAs have come into effect. Participation in FTAs has promoted positive and significant growth in trade in the Central Highlands region.
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| FTAs promote positive growth in trade between Central Highlands and Central Vietnam |
According to Mr. Ha Sy Dong - Vice Chairman of Quang Tri Provincial People's Committee, Vietnam's participation in new generation FTAs such as CPTPP, EVFTA, UKVFTA... has opened up many opportunities for growth in goods exports, attracting investment, having positive impacts on the socio-economic development of Quang Tri province, especially promoting growth in trade value.
The leader of the Quang Tri Provincial People's Committee said that with the efforts of the Department of Industry and Trade and other departments and branches in actively deploying information and providing guidance on accessing and implementing FTAs, up to now, many enterprises in the province have understood and exploited the incentives and opportunities to expand the market from the commitments in FTAs, especially the new generation FTAs.
“Quang Tri's export turnover has grown well since 2015 (from 387.9 million USD in 2015 to 600.4 million USD in 2023 - PV). ODA projects and FDI enterprises investing in the Southeast Economic Zone, Lao Bao Commercial Zone, and other industrial parks have grown significantly,” informed the Vice Chairman of the Quang Tri Provincial People's Committee.
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| Mr. Ha Sy Dong - Vice Chairman of Quang Tri Provincial People's Committee |
Ms. Nguyen Thi Thanh Lich - Vice Chairwoman of Gia Lai Provincial People's Committee - said that FTAs have had a strong impact on the province's economy as well as its export of goods. In recent times, Gia Lai province has been very active in disseminating information to civil servants and related businesses about industries and sectors that can take advantage of opportunities from FTAs, as well as increasing investment attraction.
“Up to now, the province has 11 FDI projects with a total investment capital of 697 million USD. Total export turnover has increased continuously every year, export turnover has grown impressively from 580 million USD in 2020 to an expected 750 million USD in 2024” , Ms. Nguyen Thi Thanh Lich informed and said that Gia Lai province currently has 30 export enterprises, the main export markets are Europe (accounting for about 50 - 60% of the province's total export turnover, the main export goods are coffee, wood), the Asian market (accounting for about 30%, mainly China, Korea..., the main products are rubber, cassava, coffee and wood products).
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| Ms. Nguyen Thi Thanh Lich - Vice Chairman of Gia Lai Provincial People's Committee |
As for Da Nang City, Ms. Do Thi Quynh Tram - Deputy Director of the city's Department of Industry and Trade - said that the implementation of international economic integration and the implementation of FTAs have initially brought positive results in many aspects, contributing to the city's economic development.
In the field of trade, Da Nang's import-export turnover is in the Top 3 of the Central Highlands region. Da Nang's total export turnover in the period of 2021 - 2024 is estimated at 7.7 billion USD, with an average growth rate of 4.5%/year. Da Nang's total import turnover in the period of 2021 - 2024 is 5.2 billion USD, an average increase of 0.1%/year. Da Nang's enterprises' goods are currently exported to more than 120 countries and territories.
Many businesses have not paid attention to effectively utilizing FTAs.
Despite many positive results and efforts to support businesses, representatives of provinces and cities in the Central Highlands region also said that they still face difficulties in implementing FTAs. Among them, the most prominent issue is that businesses have not really paid due attention to effectively utilizing incentives from FTAs.
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| Ms. Do Thi Quynh Tram - Deputy Director of Department of Industry and Trade of Da Nang City |
“Enterprises are the main force implementing FTAs and are most strongly affected during the implementation of FTAs. However, many enterprises are still not fully aware of the impacts of FTAs, are not proactive and active in approaching and learning about FTA commitments, and have not paid attention and invested appropriate resources to effectively take advantage of opportunities as well as minimize challenges brought about by FTAs,” said Ms. Do Thi Quynh Tram.
According to Mr. Ha Sy Dong, the province's import-export enterprises mainly import and export with China or act as satellites for large enterprises, so they have not paid due attention to new generation FTAs.
Representatives of localities also said that there are still many limitations in collecting statistics, especially data related to import and export and difficulties in taking advantage of FTAs. "Detailed data on industries, markets, import and export enterprises... in the province have not been provided promptly and in detail, greatly affecting analysis, evaluation and direction activities," said Mr. Ha Sy Dong.
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| There needs to be specific policies to provide maximum support for businesses to access markets with FTAs. |
To make the implementation of FTAs in the coming time more effective, according to localities, there should be specific policies to provide maximum support for businesses to access markets with FTAs.
The Deputy Director of the Department of Industry and Trade of Da Nang proposed that the Government, ministries and central branches develop and effectively implement the Action Plan to implement FTAs, especially specific policies to provide maximum support to localities and enterprises in accessing the market; integrate and coordinate activities and programs of diplomatic and foreign agencies.
Similarly, Gia Lai province also proposed specific policies to support businesses in each industry to access and take advantage of incentives from FTAs. "Gia Lai province hopes that the Government, ministries and sectors will have practical policies to support businesses when implementing FTAs such as CPTPP, EVFTA, UKVFTA. Specifically, how to access incentives for industries and products that Gia Lai province can be strong in such as coffee and wood products," Ms. Nguyen Thi Thanh Lich proposed.
In addition, the Central Highlands localities also proposed to innovate to increase the effectiveness of propaganda and dissemination work. "It is recommended that ministries and branches strengthen specific and detailed information dissemination activities about the FTAs of which Vietnam is a member. In particular, consider grouping the target audience and disseminating information so that the propaganda content is closer to the needs and development scale of enterprises," said Mr. Ha Sy Dong.
| According to information from the Central Region Import-Export Management Department (under the Import-Export Department, Ministry of Industry and Trade), the situation of taking advantage of incentives from regional FTAs is quite positive, with some markets recording growth in the number of C/Os issued and export value (from 200-500%) compared to the time before the FTAs took effect. |
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