Workers at the garment line of SCavi Hue Company during the export production shift.

Look back to go further

In early April this year, the Ministry of Industry and Trade coordinated with the Government Office to announce the FTA Index for 2024, aiming to measure the level of FTA utilization at the local level. This is the first time Vietnam has had its own index to measure FTA implementation capacity, thereby supporting policy making, improving the investment environment and promoting businesses to exploit trade agreements more effectively.

According to the results, Hue city achieved 19.08 points, ranking 55/63 provinces and cities nationwide. Mr. Phan Quy Phuong, member of the City Party Committee, Vice Chairman of the Hue City People's Committee, said that Hue's failure to achieve a high ranking in the FTA Index 2024 is a warning signal to review the local integration capacity, as a driving force for reform.

“Most enterprises in Hue are small and medium-sized, with limited resources, weak management capacity and access to information on free trade agreements. Some enterprises still depend on traditional markets and have not proactively exploited tax incentives from new-generation agreements,” said Mr. Phuong.

Besides, logistics infrastructure, import-export support services and supporting industries are still weak, causing high trading costs, reducing the competitiveness of local goods.

From this reality, the city is shifting from the mindset of "enjoying incentives" to "proactive integration", focusing on key solutions such as: Intensive training for businesses on rules of origin, environmental and labor standards and technical barriers; at the same time, promoting the provision of market information, guiding the quick and transparent issuance of C/O, creating conditions for businesses to effectively access markets in the FTA bloc.

“FTA is not just a matter of tariffs, but also a test of integration capacity,” Mr. Phuong emphasized. “Hue needs to go hand in hand with procedural reform, logistics development, and improving the localization rate and human resource capacity. When businesses are strong enough, we can fully take advantage of the new generation of trade agreements.”

Workers of Hue Seafood Development Joint Stock Company process export products according to FTA standards.

Breakthrough from procedures to logistics

From the perspective of state management, the Department of Industry and Trade is considered an important focal point in putting incentives from FTAs ​​into practice.

Mr. Phan Hung Son, Deputy Director of the Department of Industry and Trade, said: “We have arranged a team of consultants to directly guide businesses in using and exploiting C/O effectively, while promoting digital transformation in the licensing process. Every year, the department issues thousands of C/O for goods exported to markets under trade agreements, with the processing time reduced to only 6-8 working hours.”

Currently, the Department is coordinating with the Ministry of Industry and Trade to deploy an electronic C/O issuance system on the eCoSys platform, helping businesses shorten time, reduce errors and increase transparency. The application of this technology also allows businesses to look up and update information, limit paperwork and save significant costs.

“We are shifting from procedural support to strategic companionship, not only granting C/O quickly and on time, but also advising businesses to choose suitable agreements and exploit the market more effectively,” Mr. Son emphasized.

The Department of Industry and Trade also coordinates with the Ministry of Industry and Trade and Vietnamese Trade Offices abroad to update market information, organize trade promotion conferences and guide businesses to grasp international consumption trends, helping Hue businesses proactively expand export markets and effectively take advantage of incentives from FTAs.

The customs sector is the “front line” supporting businesses at the border gate. Mr. Nguyen Dinh Chien, Deputy Head of the Customs Branch of Region IX, said that the unit is implementing the model of “Digital Customs”, “Smart Customs”, aiming at “Green Customs”, promoting the application of technology in management, declaration and traceability of goods origin, helping to shorten customs clearance time to the maximum.

According to Mr. Truong The Khanh Quynh, Captain of Chan May Port Customs, the unit regularly organizes dialogues between customs and businesses, updates new regulations, and guides correct declarations to avoid losing incentives. The goal of customs is not only to collect budget revenue but also to facilitate trade and minimize extra costs for businesses.

Digital transformation - new momentum

At Vinatex Phu Hung Joint Stock Company, digital transformation is considered a strategic step in improving integration capacity. Ms. Nguyen Thi To Trang, General Director of the company, said: The company has invested in a smart production management system, digitized the entire import and export process and synchronized C/O data on an electronic platform, helping to control the information chain in real time, transparently and accurately. "If it used to take several days to review the origin documents, now it only takes a few minutes; all documents are automatically updated, ensuring clear traceability," Ms. Trang said.

According to Ms. Trang, digital transformation not only helps shorten customs clearance time, reduce costs and errors, but also creates a foundation for businesses to meet high standards on environment, labor, and traceability as required by new generation FTAs.

Sharing this view, Ms. Xu Jia Ji, System Manager of Billion Max Vietnam Export Processing Co., Ltd., said that to fully exploit the FTA, enterprises must upgrade themselves. The foundation for Hue enterprises to integrate more deeply into the global value chain is the process of standardizing processes, investing in technology and forming a domestic network. Ms. Xu Jia Ji said that currently, the company's domestic raw material ratio is only about 3 - 5%, because Vietnam has not yet produced technical plastic resins that meet international standards. "If in the future there is a domestic supply that meets standards, our enterprise will reduce its dependence on foreign raw materials and make better use of tax incentives from the FTA," Ms. Xu Jia Ji expected.

According to Mr. Tran Van My, Chairman of the Hue City Business Association, digital transformation is not only a supporting step, but also a prerequisite for businesses to step through the "FTA door". "Without transparent data, it is impossible to talk about integration and effective use of FTAs. Businesses must transform themselves, and digital transformation is the key to open that door", Mr. My emphasized.

To date, Hue City has supported more than 700 enterprises in digital transformation, provided digital signatures and electronic invoices to more than 2,200 enterprises, and helped 150 business households to convert to enterprise models.

From the practice of managing and directing local economic development, Vice Chairman of the City People's Committee Phan Quy Phuong emphasized: "Digital transformation not only helps businesses save costs, but is also the foundation for the government to create a transparent, modern and globally connected business environment."

At the macro level, Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI, commented: “If FTA is a golden passport that helps goods travel far, then digital transformation is the tool for Vietnamese enterprises to maintain their position in the global value chain. New generation agreements do not stop at tax cuts, but require transparency, social responsibility and data management capabilities - that is the playground of enterprises that know how to transform themselves.”

Vice Chairman of Hue City People's Committee Phan Quy Phuong affirmed: "Each enterprise making good use of free trade agreements not only brings benefits to itself, but also is a step forward for the entire Hue economy. The city government will accompany with specific actions - from reforming administrative procedures, perfecting logistics infrastructure, to training high-quality human resources and creating a transparent business environment."

These steps are shaping a new integration face for Hue. When the internal efforts of enterprises meet the practical support of the government, the FTA “golden passport” will truly promote its value, bringing Hue goods far and wide, affirming its brand in the international market.

Article and photos: HAI THUAN

Source: https://huengaynay.vn/kinh-te/ho-chieu-vang-cho-doanh-nghiep-mo-rong-thi-truong-xuat-khau-bai-3-chinh-sach-dot-pha-doanh-nghiep-vuon-xa-159225.html