FTAs, e-commerce optimized to boost economic growth

(VOVWORLD) - Vietnam recorded a total export revenue of more than 77 billion USD and a trade surplus of more than 2 billion USD in the first quarter of this year. The results are partly attributed to opportunities created by new-generation free trade agreements and the growing popularity of e-commerce.
FTAs, e-commerce optimized to boost economic growth - ảnh 1

With 14 free trade agreements in effect by early this year, Vietnam has connected with 52 trade partners around the globe. As the global supply chain has been disrupted due to the COVID-19 pandemic, non-traditional sectors including e-commerce have emerged as an effective solution. Promoting e-commerce and seizing opportunities created by FTAs helped Vietnamese businesses better approach markets.

In an effort to develop e-commerce, the Department of E-Commerce and Digital Economy of the Ministry of Industry and Trade has finalized the national database on profiles of Vietnamese businesses, providing a reliable reference source for state agencies and foreign trade partners.

Economists say businesses need to promote transparency, digitize their operations, develop effective sale strategies, learn the rules on e-transaction floors, particularly those concerning logistics, payment, quality requirements, traceability, and international trade practices to minimize risks and economic losses.

Nguyen Kim Hung is Director of the Vietnam Institute for Business Management Science and Digital Economy (VIDEM).

"Businesses need a farther vision. Branding, traceability and particularly financial transparency and personnel transparency are the crucial factors. It’s also important to strengthen links with online transaction floors.' said Hung.

According to the Ministry of Industry and Trade, Vietnams’ e-commerce grew 18% last year with a value of more than 11 billion USD. Major global groups like Google, Temasek, and Bain&Company forecast that with a growth of 29% during the next five years, Vietnam’s digital economy can surpass 52 billion USD and rank 3rd in ASEAN by 2025.