Adapting and seizing opportunities from FTA agreements
(Baonghean.vn) - Although the market has many fluctuations and the cost of goods circulation has increased, Nghe An enterprises have grasped the Free Trade Agreements (FTAs) well to promote the export and import of goods.
Take advantage
In the past 3 years, Vietnam has participated in many large-scale FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam - EU Free Trade Agreement (EVFTA), the Vietnam - UK Free Trade Agreement (UKVFTA), the Regional Comprehensive Economic Partnership Agreement (RCEP)...
These agreements open up opportunities for Vietnamese goods in general, and Nghe An goods in particular, to enter unprecedentedly large markets. In addition, businesses must always strive to improve the quality and standards of goods to meet export requirements as well as to maintain the domestic market if they are not dominated by imported goods. In that context, some key export products of Nghe An have achieved good growth rates such as: Electronic components, textiles, wood chips, stone powder, electric wires and cables, etc.
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| Export garment line of Havina Kim Lien - Nam Dan Company Limited. Photo: Thu Huyen |
Textile and garment is the industry that benefits the most from FTAs. In recent times, businesses have carefully prepared to meet the requirements of origin from partners. At the same time, they have strengthened links and used products and raw materials within the agreement bloc to better access preferential conditions. Therefore, the textile and garment industry continues to be in the top of the province's export turnover. The item has a fairly active export participation of 33 businesses, exporting goods to more than 20 markets around the world, including: Korea, China, the United States, Japan, ...
The agricultural, forestry and fishery export sector also enjoys many incentives in the new FTAs. Ms. Hua Thi Trung Thu - Director of Greenfarms Company Limited said: Korea is one of the important and potential markets for Nghe An's export enterprises. The company is currently building an agricultural processing factory in Quynh Luu, first producing dried green onions and carrots for the Korean market, so it hopes to find partners and help inspect the products that Korea is interested in investing and processing.
“To penetrate demanding markets like Korea, we pay special attention to food safety and hygiene; invest in a closed process from raw material areas to production and processing. At the same time, we constantly improve quality standards to meet the strict standards of the markets that are evaluated and upgraded annually. Thanks to that, the company's products are popular and receive long-term orders from partners" - Ms. Thu shared.
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| Korean enterprises learn about Nghe An agricultural products. Photo: Thu Huyen |
According to statistics from the Ministry of Industry and Trade, thanks to flexible adaptation to trade agreements, the province's export of goods has achieved remarkable results. In 2021, the province's total export turnover reached 2.11 billion USD, an increase of 76.04%, exceeding 132.2% of the annual plan. In the first 10 months of 2022, the estimated turnover reached 1.838 billion USD, an increase of 10.27% over the same period, reaching 92% of the planned target.
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Graphics: Huu Quan |
Accompanying businesses
In the context of our country increasingly participating in negotiations and signing many bilateral and multilateral free trade agreements with countries and regions around the world, investment projects of FDI enterprises related to textiles, electronic components, etc. in the area are adjusted to expand their scale and newly licensed. Local enterprises are increasingly mature, more sensitive and proactive in their import and export business activities.
In addition, enterprises also received timely attention, orientation and direction from relevant levels and sectors in creating export sources, expanding markets, improving logistics infrastructure, etc. In particular, the Department of Industry and Trade promptly deployed effective FTAs to all levels, sectors, People's Committees of districts, cities and towns as well as associations, enterprises and related organizations and individuals in the province. The Provincial People's Committee organized propaganda and training courses on effective free trade agreements for officials, civil servants and public employees of state management agencies at provincial, district and commune levels and enterprises located in the province. In the period of 2021 - 2022, 2,500 delegates participated in training courses on propaganda and dissemination of the CPTPP Agreement; the EVFTA Agreement and integrated dissemination of information on international economic integration, the UKVFTA Agreement, and RCEP.
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| Textile and garment is the industry that benefits the most from preferential tax policies. In the photo: Production at Kido Vinh Garment Company Limited. Photo: Thu Huyen |
In addition, the Industry and Trade sector has also done a good job of guiding businesses in the province to carry out procedures to request certificates of origin for goods exported to countries that have signed free trade agreements that have come into effect (ASEAN countries, Korea, China, India, Japan, Chile, the Eurasian Economic Union, Australia - New Zealand, Hong Kong, the CPTPP bloc, the EU, RCEP). On average, about 8,000 certificates of origin are issued to brands each year. Currently, the rate of taking advantage of tariff incentives under the FTA by businesses in the province in 2021 - 2022 has reached about ~ 45% of the province's total export turnover of goods.
The Department of Industry and Trade also regularly organizes online meetings between Nghe An province's enterprises and Vietnam's Trade Counselors in countries that have signed FTAs such as India, Korea, Japan, etc. to promote the province's export activities.
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| Producing canned fish for export at Royal food factory, Nam Cam Industrial Park. Photo: Thu Huyen |
However, in the context of integration from FTAs, enterprises in the province also face many challenges. The reason is that Vietnam implements FTAs in the position of a member with a lower level of development than most other member countries. Therefore, enterprises are under pressure to open markets in the fields of goods, services, and investment. According to the Import-Export Department, Department of Industry and Trade, many enterprises face difficulties in meeting strict standards on technical trade barriers such as: Technical regulations and standards; safety and quality requirements; labeling, consumer information; import registration procedures... Meanwhile, Nghe An is a large province, the scale of enterprises in the province is mainly small, medium and micro enterprises; the initiative of enterprises in international economic integration is not high.
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Despite difficulties due to the impact of the pandemic, in 2021 and 2022, Nghe An province's export turnover of goods reached quite high levels. Graphics: Huu Quan |
Mr. Cao Minh Tu - Deputy Director of the Department of Industry and Trade said: Currently, the EVFTA Agreement has entered its 3rd year of implementation, the CPTPP Agreement has entered its 4th year. Therefore, this is a "golden" time for businesses to prioritize boosting exports, affirming the value of product brands in the international market.
In the coming time, we will continue to strengthen propaganda, dissemination, and raise awareness of businesses and local levels and sectors about international economic integration in general and signed free trade agreements in particular; provide guidance on the implementation of free trade agreements that our country has signed and is implementing. Focus on improving knowledge and capacity for officials working in import and export in policy making as well as implementing international commitments; promote the application of information technology and administrative reform to support import and export enterprises in the province.
