FTA helps goods reach new heights

VINAGREEN Investment and Development Joint Stock Company (Trieu Son) is completing standards to export goods to the markets of Japan, Germany, China, and Indonesia. Photo: Tung Lam

With an export turnover maintained at 5 - 6 billion USD/year, Thanh Hoa is emerging as one of the bright spots in exports in the North Central region. Exports of goods in April 2025 continued to increase by 4.2% compared to the previous month and by 16.9% over the same period. This is a positive figure in the context of many uncertainties in the world economy . The structure of goods has shifted in a positive direction, focusing on key industries such as textiles, seafood, stone tiles, processed agricultural products, etc. The above achievements come not only from the internal capacity of enterprises, but also thanks to the acumen in exploiting opportunities from FTAs of which Vietnam is a member. Effectively utilizing FTAs not only helps enterprises expand their markets but also creates competitive advantages through tariff incentives, shortening supply chains and improving product standards.

Thanh Hoa Seafood Import-Export Joint Stock Company (Thanh Hoa City) is one of the leading units in taking advantage of FTAs to expand the market. With an understanding of the market and flexible adaptation, in difficult times like 2022 and 2023, the company still maintains a basic output of about 14,000 tons of clams, equivalent to a revenue of 700 billion VND; 800 tons of fish cakes and fish meal with a revenue of 1,000 billion VND. Company Director Trinh Thi Cuc shared: “Free trade agreements have created conditions for the company to access many demanding markets in the world in the Americas, Europe and part of Asia. In 2025, the company's orders will still be signed stably with diverse markets, ensuring factory capacity and jobs for workers. The company is aiming to export 30 million USD in 2025”.

Currently, Vietnam has 17 signed free trade agreements (FTAs). Hundreds of enterprises in the province have been effectively exploiting tariff incentives, reducing costs, expanding orders and improving production standards. According to information from the Department of Industry and Trade, up to now, the province has 111 enterprises participating in exporting to member countries of the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP), 101 enterprises exporting to the EU market thanks to the Vietnam - European Union Free Trade Agreement (EVFTA); 24 enterprises accessing the UK market through the Vietnam - UK Free Trade Agreement (UKVFTA) and 303 enterprises conducting trade with countries in the Regional Comprehensive Economic Partnership (RCEP). Continuing to deeply exploit markets with FTAs not only helps enterprises reduce tariff costs but also "forces" enterprises to continuously upgrade production processes, standardize products, and build sustainable brands.

To facilitate enterprises to access FTAs, Thanh Hoa province has synchronously implemented many solutions such as: organizing training courses and in-depth seminars on rules of origin and technical standards of major markets; providing direct consultation to small and medium enterprises, helping them grasp information and effectively implement FTA commitments; promoting trade promotion, connecting international distribution systems, expanding export goods consumption channels; coordinating with the Ministry of Industry and Trade to build a market map platform and FTA database to support enterprises in searching quickly and accurately. Along with that, the province is also focusing on completing logistics infrastructure for exports, promoting investment in specialized industrial parks and clusters associated with raw material areas, creating a solid foundation for enterprises to expand their scale and improve production capacity according to international standards.

According to the announcement of the FTA Index of localities in 2024, Thanh Hoa province achieved 34.13 points, ranking 2nd in the country. This result affirms the great efforts of local Party committees, authorities and the business community in effectively taking advantage of opportunities from FTAs to improve competitiveness, integrate into the international economy, and expand export markets. It is known that the FTA Index is built on 4 main pillars: FTA propaganda and dissemination; implementation of legal regulations on FTAs; policies to support competitiveness improvement; implementation of commitments on sustainable development. In particular, Thanh Hoa province is assessed to have achieved the best results in implementing and implementing policies to support competitiveness improvement of enterprises.

Chairman of Thanh Hoa Textile and Garment Association Trinh Xuan Lam said: “The province and related departments and branches are very close in directing the implementation of FTA policies, supporting enterprises to understand import and export regulations, especially regarding traceability and green production. Enterprises are increasingly focusing on complying with international standards, building capacity to meet FTA markets. Notably, many enterprises in the industry are increasingly equipped, improving their initiative, focusing on investing in environmentally friendly technology, improving designs, and saving energy - factors that help them compete in high-end markets such as the EU, Japan, and Canada”.

In the 2021-2025 period, the total export turnover of goods in the province is estimated to reach over 30 billion USD, increasing by an average of 15.5% per year. Besides the opportunities opened up by FTAs, Thanh Hoa's exports are also facing many challenges, especially in the context of many fluctuations in global trade. The US and some countries considering increasing import taxes on Asian goods pose an urgent need to diversify markets and reduce dependence on risky partners. With a solid foundation of integration, along with high determination from the government and business community, Thanh Hoa has a great opportunity to affirm its role as an attractive destination in the global supply chain. Effectively utilizing FTAs is the "key" for the province's exports to make a strong breakthrough in the coming period.

Tung Lam

Source: https://baothanhhoa.vn/fta-tiep-suc-cho-hang-hoa-vuon-tam-248175.htm