Nghe An takes advantage of FTA agreements to promote exports

Increased turnover, expanded export market

According to the Department of Industry and Trade, Nghe An's total export turnover in 2024 will reach 3.9 billion USD, an increase of 25.8% compared to 2023; of which, the export turnover of goods is estimated at over 3.2 billion USD, an increase of 31.57% compared to 2023, exceeding the annual plan by 16.9%.

Export goods are quite rich and diverse with more than 100 items/groups of items, many items have quite good growth in turnover. Some items have quite good growth in export turnover compared to the same period, typically: Electronic equipment and components increased by 84.4%; Textiles and garments increased by 30.1%; Steel sheets of all kinds increased by 29.2%; Electric wires and cables increased by 74.5%; Footwear of all kinds increased by 88.1%; Rice increased by 75%,...

The export market has continuously increased over the years. In 2024, businesses in the province exported goods to the markets of 150 countries and territories.

Export turnover to some markets increased sharply compared to the same period, typically: Hong Kong increased by 87.5%; Taiwan increased by 68.4%; Japan increased by 28.8%, Korea increased by 16.7%, Germany increased by 47.7%, Singapore 111.5%,... New markets are continuously expanded and exploited by businesses, typically: Mozambique, Serbia, Tunisia, Rwanda, Belize, Benin, Mauritania, Dominican Republic, Maldives, Paraguay,...

Export turnover of goods to markets with FTA agreements reached 2.76 billion USD, up 28.4% compared to 2023 and accounting for 86.3% of total export turnover of goods. Taking advantage of incentives from free trade agreements has helped businesses increase exports, improve scientific level, and seize new opportunities.

In particular, the proportion of raw and unprocessed goods decreased, while the proportion of industrial and processed goods continued to increase. Currently, the group of processed and manufactured industrial goods is the province's main export group with a turnover of over 2.9 billion USD, accounting for 90.1% of total export turnover (in 2023, this ratio reached 87%), an increase of 30.8% compared to 2023.

More and more businesses have realized the need to participate in global value chains and supply chains; setting up strict requirements for themselves in terms of technology and systems to meet requirements on products, corporate governance, labor, etc. Some businesses in the textile, footwear, electronic components, etc. industries are currently applying green production requirements from the international market.

For agricultural products, many agricultural production models according to value chains have been built, improving harvest productivity and brand value.

The province's agricultural products are moving towards sustainability. Some OCOP products of Nghe An have met mandatory standards and regulations to create a premise and opportunity for export to the international market. Some prominent product brands of companies such as: Fine art wooden products of Duc Phong Company Limited, Van Phan fish sauce, Dien Chau peanuts, Quynh seafood, BOMETA honey, etc. Products such as: instant eel vermicelli, vegetable noodles, nut milk, etc. have also had foreign trade contracts with customers in European countries, the United States, Thailand, etc.

Mr. Nguyen Ho Lam - Deputy Head of the Provincial Department of Economic Cooperation and Rural Development said: Up to now, Nghe An has had 632 products ranked as OCOP 3 stars or higher with 397 subjects. Nghe An is the second province in the country in terms of the number of products with recognized star ratings (after Hanoi). Many OCOP products of the province are exported to "difficult" markets such as: France, Germany, Netherlands, Sweden, Denmark, USA, Japan, Korea, Singapore... Many businesses have affirmed the quality of their products.

Make the most of opportunities from FTAs

In 2024, export enterprises will face great difficulties in the market with major political and economic fluctuations in the world, not only affecting the consumption market but also causing additional logistics costs for export enterprises.

Rising inflation and tightening spending in important markets such as the EU and the United States have led to a decrease in purchasing power and import demand, with orders falling sharply, such as for fishmeal, cassava starch, handicrafts, wood pellets, processed fruits, etc.

In 2025, many favorable and difficult factors will affect export activities. Global economic growth and trade growth have been recovering. China, the world's second largest economy and a major market for Nghe An's export enterprises, has introduced strong monetary stimulus measures and a fiscal stimulus package expected to reach $1.4 trillion to achieve growth targets.

The recent increase in foreign investment in Nghe An promises to improve production capacity and create a source of goods for export. The export market is expected to continue to expand and diversify as FTA partner markets with preferential tax rates continue to decrease according to the roadmap.

According to the assessment, exports in 2025 still face many risks and are difficult to predict. The crisis in the Middle East has affected the transportation of goods in the world and in Vietnam; time and shipping and insurance costs have increased. The trend of trade protectionism has appeared more, many countries have measures to bring investment back to their countries, creating trade barriers. Developed markets such as the EU focus on sustainable development, and have introduced many new regulations such as the Carbon Adjustment Mechanism, the European Anti-Deforestation Regulation, etc.

To achieve the target of 4.0 billion USD in export turnover by 2025 as well as the target set for the entire 2021-2025 term, Mr. Pham Van Hoa - Director of the Department of Industry and Trade said that the industry has set out many solutions to support and accompany businesses. That is to diversify export markets, effectively exploit market opening opportunities through activities connecting export supply and demand, organizing business delegations to participate in fairs, exhibitions, conferences, forums connecting supply and demand, connecting trade in major export markets, market areas that have signed FTAs ​​with Vietnam.

Strengthening the exploitation of new markets, potential markets (Eastern Europe, Northern Europe, Middle East, Africa, Latin America, ...) for the province's export products, especially OCOP products. Promoting exports according to the orientation of priority commodity groups in each period, in accordance with the developments of the world economy, taking advantage of international market opportunities as well as domestic markets.

Review to support the acceleration of investment attraction projects to put into production and export, especially key industrial projects of the province, creating large sources of goods for export such as: automobile production and assembly; electronic component production projects,...

Continue to innovate trade promotion activities, encourage businesses to boost consumption of goods through e-commerce trading platforms such as Amazon, Alibaba, etc. Support businesses in building brands, designing packaging suitable for international customers and building booths on e-commerce platforms to gradually create the image and market share of Nghe An goods in the world market. At the same time, mobilize resources to invest in transport infrastructure connecting logistics services.

Thu Huyen