New FTAs bring new values, challenges

(VOVWORLD) - Vietnam's import and export turnover this year is estimated to be 750 billion USD, with a surplus of 11 billion. This positive result is attributed to the efforts by economic sectors and the business community to make the most of new Free Trade Agreements, which have boosted revenues from Vietnamese consumer goods.
New FTAs bring new values, challenges  - ảnh 1At Tan Cang - Hai Phong international seaport (Photo: An Dang/ VNA)

State agencies and business organizations say Vietnam has taken advantage of the tariff incentives of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership over the three years since the agreement took effect. Exports to CPTPP markets in the past 10 months earned 45 billion USD, 22% more than in the same period last year.

Vo Hong Anh, Deputy Director of the Europe-America Market Department of the Ministry of Industry and Trade, said exports to Canada, Mexico, Peru, and Chile, the four American markets, have surged strongly.

“Canada depends heavily on imports and has a large immigrant population, which creates opportunities for Vietnamese exports of consumer goods and food. Mexico, with a population of about 120 million people, has a lot of purchasing power and an annual import volume of 400 billion USD. About 75% of Peru’s import and export enterprises are small or medium-sized, which suits the approach and scale of Vietnamese enterprises. Peru can be the gateway to Brazil and Bolivia for Vietnamese businesses,” Mr. Anh said.

Vietnam's exports grew 22.3% in the first 10 months of this year, with turnover reaching 39.4 billion USD. Textiles, footwear, furniture, and electronics all had high growth rates. Agro-forestry and fishery also saw strong growth.

The Free Trade Agreement between the UK and Vietnam (UKVFTA), which came into force in May last year, has had positive results. Two-way trade revenue has grown rapidly. The Regional Comprehensive Economic Partnership (RCEP), which took effect at the beginning of this year, has created a lot of new opportunities for Vietnam.

Along with the economic benefits, the FTAs have also posed challenges for Vietnamese businesses. Vu Chi Mai, a senior expert on energy of German development agency (GIZ), said that for an open economy like Vietnam, participating in new-generation free trade agreements like CPTPP and EVFTA, to be able to sustainably export to the EU, its businesses must use clean-energy-based production and follow environmental standards. Many FTA partners have strengthened the criteria related to environment, climate, green transition, labor, employment, and sustainable development. The main challenge for Vietnamese enterprises in the coming years will be to comply with green production rules, environmental criteria, and changing social issues.

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