Direct discussion with businesses about the ecosystem of taking advantage of FTAs, including the EVFTA Agreement in the footwear sector in Hai Phong

08/30/2024 14:30

Overview of the seminar in Hai Phong.

(PLVN) - Within the framework of implementing the Ecosystem to take advantage of Free Trade Agreements (FTAs), recently in Hai Phong city, the Ministry of Industry and Trade coordinated with the Department of Industry and Trade of Hai Phong city to organize a "Direct discussion with business leaders in provinces and cities about the ecosystem to take advantage of FTAs, including the EVFTA, in the leather and footwear sector".

The seminar was held in person with the participation of representatives of the Ministry of Industry and Trade (Department of Multilateral Trade Policy, Department of Import and Export); representatives of management agencies on FTA implementation and import and export of Hai Phong city; representatives of the Vietnam Leather, Footwear and Handbag Association; Tony Blair Institute for Development (TBI) and enterprises manufacturing, trading and operating in the leather and footwear sector in the city.

In recent years, the leather and footwear industry has always been among the top five key export industries of Vietnam, making the country one of the countries with a relatively solid position in the production and export of leather and footwear products in the world. Among the localities with developed leather and footwear industries across the country, Hai Phong plays a pioneering and leading role in the leather and footwear industry in the North. According to statistics from the Hai Phong Customs Department, the export turnover of the leather and footwear industry in the city is estimated at 1,150 million USD, accounting for 5.01% of the city's total export turnover, up 11.4% over the same period in 2023.

Many delegates and businesses attended the discussion and contributed their opinions.

Mr. Nguyen Cong Han, Deputy Director of Hai Phong Department of Industry and Trade, added that the average annual growth of Hai Phong's leather and footwear industry is from 10% to 15%. Therefore, leather and footwear is a product with great potential for Hai Phong enterprises to continue to promote exports to traditional markets, while continuing to increase value by accessing and exploiting large import markets within the framework of new-generation FTAs ​​with many higher import standards.

With Vietnam having implemented 16 FTAs ​​up to now, including 3 new generation FTAs: CPTPP, EVFTA and UKVFTA, this is a great opportunity to bring exported leather and footwear products to major trading partners due to the impact of preferential commitments on import and export taxes and demand from these markets, thereby helping leather and footwear enterprises in Hai Phong in particular and Vietnam in general to increase value and participate more deeply in regional and global production chains.

This was also confirmed by Mr. Le Linh, representative of the Import-Export Department, Ministry of Industry and Trade. Accordingly, since the new generation FTAs ​​came into effect, the Vietnamese leather and footwear industry has recorded great growth. The trading partners under the 3 new generation FTAs ​​are all major importers of leather and footwear products from Vietnam.

However, in addition to the impressive information related to the export figures of the footwear industry provided at the Seminar, delegates from the Central management agency (Ministry of Industry and Trade), local management agencies in Hai Phong city (Department of Industry and Trade, State Bank of Vietnam Hai Phong branch, Department of Planning and Investment, Hai Phong City Customs Department), Vietnam Leather, Footwear and Handbag Association, international organizations (Tony Blair Institute for Development) and footwear manufacturing enterprises in the city all shared the same assessment that the footwear industry in the country in general and Hai Phong in particular is facing a number of major challenges. Specifically, the parties shared from many different perspectives but had some common points such as: (i) difficulty in self-reliance in finding sources of raw materials, being dependent or being designated by import partners; (ii) lack of information and foreign regulations, including factors related to taking advantage of FTAs; (iii) difficulty in accessing capital and credit; (iv) lack of reliable sources of advice and support; and (v) difficulties in branding.

In recent years, the above difficulties and shortcomings have been recognized and identified by the Ministry of Industry and Trade as largely due to weaknesses, deficiencies, and inconsistencies in the implementation of FTAs. Therefore, the Ministry of Industry and Trade has researched the Ecosystem model to take advantage of FTAs, especially new generation FTAs. At the Seminar, there was a direct discussion with business leaders in provinces and cities about the ecosystem to take advantage of FTAs, including the EVFTA, in the leather and footwear sector.

Mr. Ngo Chung Khanh, Deputy Director of Multilateral Trade Policy Department, Ministry of Industry and Trade, shared about the Ecosystem of utilizing FTAs ​​in the footwear industry at the Seminar.

According to Mr. Ngo Chung Khanh - Deputy Director of the Department of Multilateral Trade Policy, the Ministry of Industry and Trade introduced the Ecosystem Project to take advantage of FTAs ​​in the leather and footwear sector, including: objectives, connection methods, roles and benefits of participating parties, methods of operation to support businesses to take advantage of FTAs, participation criteria, difficulties in building the Ecosystem, roadmap and steps to build the Ecosystem in the coming time. The organization of the Seminar aims to introduce the Ecosystem to take advantage of FTAs ​​in the leather and footwear sector, to receive opinions and answer questions from relevant entities that will participate in the Ecosystem. This activity helps the Ministry of Industry and Trade and the Drafting Agency have more practical basis to deploy the construction, report to the Prime Minister on the feasibility of the Model to bring practical effects, helping leather and footwear businesses take advantage of FTAs, especially new generation FTAs, in a truly and thoroughly way.

Some pictures at the seminar:

Delegates discuss and give opinions.

Many good ideas were noted at the seminar.

Delegates discuss.

Source: https://baophapluat.vn/toa-dam-truc-tiep-voi-cac-doanh-nghiep-ve-he-sinh-thai-tan-dung-cac-fta-trong-do-co-hiep-dinh-evfta-trong-linh-vuc-da-giay-tai-hai-phong-post523552.html