3 pillars for businesses to take advantage of FTA Index to accelerate | Industry and Trade Newspaper

The Chairman of the Vietnam Textile and Apparel Association shared insights into the role of the FTA Index and three pillars of action that businesses need to take.

- How do you view the birth of the FTA Index in the context that Vietnam has signed and implemented many new generation FTAs, especially for an industry with large export turnover such as textiles and garments?

Mr. Vu Duc Giang: I think that FTA Index is a breakthrough and strategic index.

Firstly, if we continue to do as before without building indexes like the FTA Index or in the case that importing countries make mandatory requirements for this index that we do not have or cannot meet, then Vietnamese enterprises will be considered to be outside the global game. This is the first issue I want to affirm.

Second, these indicators have been and are promoting the ability of Vietnamese businesses to adapt. Only when we adapt can we have a level playing field, stability and position in the global market.

Third, it comes from the solutions that have been and are being implemented. Currently, we have signed 17 FTAs, and we may sign some more FTAs ​​in the future, possibly reaching 22 FTAs.

In all these FTAs, the importing countries have specific requirements on the index for the producers, for the exporting countries that want to participate in their global market. Each importing country will have a different set of standards.

Therefore, the FTA Index will continue to promote business adaptability - businesses must invest in people, invest in technology equipment, invest in infrastructure and most importantly, invest to achieve transparency indicators.

Transparency will create a real impetus for us to access the global market in general, and the EU market in particular - a market with high requirements and strict standards.

That is the goal that I believe the Vietnamese textile industry in particular and the industrial production sectors in general of our country must adhere to.

We must create a system of solutions to promote adaptive capacity. Only by adapting can businesses develop a stable market and move towards long-term sustainable development.

- With an industry spanning many localities like textiles, how does the FTA Index support businesses in choosing investment locations and expanding production in line with integration advantages?

Mr. Vu Duc Giang: I think this index has 3 factors affecting the business community.

Firstly, it promotes fairness and especially comprehensive spread between businesses and different localities. Because this index is not specific to a business or a region, but this index requires all regions to comply with this index in order to have a globally stable market development.

Second, it creates a solution to train our resources to comply with and operate this index. If we do not have resources, communication, training, and guidance solutions for our people, our apparatus, and business administrators to understand this index, we will be left out of the global game. So, people are a key factor.

Third, for the small and medium-sized enterprise community, the lesson here is that we have to adapt, scan these indicators. So this indicator is not just for large enterprises, but also for small and medium-sized enterprises.

Therefore, we must create a chain link, from which large enterprises will share with small enterprises and large enterprises themselves will also create resources and conditions to help small and medium enterprises adapt - especially enterprises in remote areas.

Because if a field or industry only focuses on a few large, or medium and small enterprises without the participation of smaller enterprises, then that industry cannot be called complete, not comprehensive for an industry.

An index has been created to create a driving force and that driving force has a comprehensive spread to the whole society. Here, it is not the awareness of a business but the awareness of the whole society. Because each link is built for a different product line, for a different raw material production chain, a different supply chain.

The Vietnamese textile industry cannot do everything, but the Vietnamese textile industry is linked with many industries: raw material production industry, packaging production industry, accessory production industry, electricity production industry and water production industry… All of those industries must have links to each other.

So we must communicate and spread the most complete awareness of society, businesses, people, management apparatus, local authorities and state management must be synchronous.

Only then can a developing country like Vietnam have a global position, in a global integration vision. Only then can we succeed in all fields.

- What message do you want to send to textile and garment enterprises about proactively approaching and using the FTA Index as an indispensable strategic tool?

Mr. Vu Duc Giang: FTA Index is a tool. I must clarify that this is a strategic tool and this tool promotes a long-term vision for businesses.

For businesses, there are 3 things - or in other words, 3 pillars that need to be done to be able to approach and operate this index effectively.

The first pillar, the first thing is to clearly understand what the FTA Index is? To understand, state management agencies and media agencies must regularly communicate. We must create a comprehensive information channel so that society can be aware, so that businesses can be aware, so that workers and people can be aware.

I think that if a business wants to develop a product to export to a market, it must clearly understand the standard indexes of that market and the FTA Index is one of them.

The second pillar that I think is extremely important is that any index needs an infrastructure to operate. We have to invest in network infrastructure, if we do not invest and just listen and leave it there, it will not solve anything.

The solution here is to approach the network system, build a comprehensive management system. The business leader proactively proposes a solution suitable for his own business, determines where the bottleneck is, how to remove it, how to understand and apply this index correctly.

Third, and this is what I particularly emphasize, we must build a chain of actions that are socialized. State agencies cannot "hold hands and show things" forever. Enterprises must walk on their own two feet.

There is no other way - business leaders must understand the importance of this index, in order to come up with their own solutions suitable for the field and industry in which the business is operating.

We have many indexes, but we have to determine which index is the key. And for me, the FTA Index is the index that we should focus on investing.

Where to invest? Invest in people, infrastructure and technology. Must invest in information technology solutions, AI technology, digital management technology.

The FTA Index must become something like “daily food”. We must understand its nature, consider it a part of our daily activities, like an indispensable meal. Only then can we develop stably and sustainably.

But if you think simply "having a certificate" for an index and then feel secure, then it is not true. You must not think that simply.

We have to communicate it constantly, remind it constantly, and operate it every day. Only then can we achieve stability in the strategic vision of the national economy .

In the context of expanding global politics and integration, I believe that this is an important factor that needs to be fully understood. Here, I emphasize that businesses must fully understand, especially the role of the business leader.

Thank you!

Performed by: Nguyen Thao - Thanh Thao

Graphics: Ngoc Lan

Nguyen Thao

Source: https://congthuong.vn/3-tru-cot-de-doanh-nghiep-tan-dung-fta-index-but-toc-381079.html