Implementing Official Dispatch No. 238/CD-TTg dated April 10, 2023, by the Prime Minister on promoting production and business, construction investment, and import-export in the coming time, and executing the directive of the Minister of Industry and Trade Nguyen Hong Dien on disseminating Free Trade Agreements (FTAs), on May 12, 2023, the Agency of Foreign Trade (Ministry of Industry and Trade) chaired and coordinated with the Dong Thap Department of Industry and Trade to organize the Conference "Leveraging preferences from Free Trade Agreements in the new context" in Cao Lanh City, Dong Thap Province.
The conference was co-chaired by Mr. Phan Van Chinh, Director General of the Agency of Foreign Trade, and Mr. Nguyen Huu Dung, Director of the Dong Thap Department of Industry and Trade. The event attracted 100 delegates from departments, agencies, and People's Committees of districts, towns, and cities within Dong Thap Province, alongside local businesses, cooperatives, farmers' associations, and economic and infrastructure offices.
Overview of the Conference.
Delivering the opening speech, Mr. Phan Van Chinh stated that in 2023, according to the International Monetary Fund (IMF), Vietnam's economic growth is expected to reach 5.8%, while the Asian Development Bank (ADB) forecasts this figure could hit 6.7%. Meanwhile, the latest World Trade Organization (WTO) report projects global GDP growth in 2023 at only 2.4% and global merchandise trade growth at 1.7%, down from 2.7% in 2022. It is evident that the difficulties facing the global economy and trade in late 2022 could not be immediately overcome and have persisted into early 2023.
This was reflected in Q1/2023 GDP growing by only 3.32%, the deepest plunge since 2011, while Q1 export turnover dropped by 11.9% compared to the same period in 2022, reaching $79.17 billion. Exports of several commodities saw year-on-year declines, such as seafood (down 27.3%), rubber (down 25.7%), textiles (down 16.8%), and footwear (down 17.6%). However, certain key products recorded growth, including rice (up 34.3%), fruits and vegetables (up 16.2%), and cashew nuts (up 4.5%). Regarding export destinations, major markets also recorded negative growth in Q1, such as China (down 11%), Japan (down 0.4%), ASEAN (down 0.3%), the EU (down 9.7%), the Russian Federation (down 32.8%), the United States (down 20.9%), and Canada (down 18.4%).
According to the Agency of Foreign Trade, Vietnam has participated in and is currently negotiating 18 FTAs, making it the only country to have signed Free Trade Agreements with all major global economic partners, including the US, Japan, China, the EU, the UK, and Russia. Outstanding among these are the European Union–Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
These FTAs provide Vietnamese businesses with numerous advantages, foster trade and export growth, and bring Vietnamese products and brands directly to end consumers in major markets worldwide.
According to Mr. Nguyen Huu Dung, Director of the Dong Thap Department of Industry and Trade, Dong Thap's economy is export-oriented, featuring around 65 export enterprises handling a diverse range of products, including rice, seafood, garments, leather shoes, prawn crackers, and pharmaceuticals. Among these, rice and seafood account for a substantial proportion (about 80%) of the province's export turnover. Additionally, Dong Thap has recently begun exporting new high-value-added products such as collagen and fish oil, helping to diversify and enhance the efficiency of the province's exports.
The Dong Thap Department of Industry and Trade also noted that despite Vietnam's deep integration into the global economy, research and understanding of how to leverage opportunities from each agreement remain limited among the local business community, agencies, and departments.
At the Conference, businesses and cooperatives spoke up to share their difficulties and challenges in production and export activities. They were also briefed on various issues related to rules of origin within FTAs, critical tariff preferences, and guidelines for organizing sustainable exports.
During the discussions, several businesses suggested that the Agency of Foreign Trade organize additional thematic conferences to provide specific guidance and solutions, helping enterprises effectively capitalize on FTA opportunities. Simultaneously, many businesses proposed that the Ministry of Industry and Trade and the local Department of Industry and Trade offer better guidance and information on the regulations of potential export markets for Dong Thap's agricultural products.
Concluding the Conference, Mr. Phan Van Chinh emphasized that to enjoy FTA tariff preferences, businesses must comply with the rules of origin for their goods. In the coming period, the implementation of FTAs will transition into a phase of stronger commitments. Therefore, it requires even closer coordination between central and local management agencies and associations, businesses, cooperatives, and farmers' associations to fully leverage the opportunities that FTAs provide.
Source: https://moit.gov.vn/tin-tuc/xuc-tien-thuong-mai/tan-dung-cac-uu-dai-tu-hiep-dinh-thuong-mai-tu-do-trong-boi-canh-moi.html