Effectively exploiting new generation Free Trade Agreements

Implementing Resolution No. 22 dated April 10, 2013 of the Politburo on International Integration, Vinh Phuc has specified the requirements of Free Trade Agreements (FTAs) through the issuance of many programs and implementation plans. Thereby, creating favorable conditions to attract investment, helping businesses expand markets and diversify export products. However, participation in implementation and exploitation of advantages from FTAs in the province still has many limitations, requiring the continued implementation of many synchronous solutions to take advantage of incentives, contributing to the growth of revenue and profit in import and export activities.

Vitto Group Joint Stock Company (Tam Duong II Industrial Park - Area A) constantly improves product designs and expands export markets. Photo: Nguyen Luong

There are currently about 500 import-export enterprises in the province. The general difficulties of the world economy and the decline in industrial production in the province have significantly affected the import-export situation. However, by taking advantage of the opportunities brought by FTAs, in addition to continuing to improve the skills of workers, enterprises in the province have actively invested in equipment, innovated production technology, diversified product designs, and expanded export markets.

Thanks to that, in the first 9 months of 2023, the province's total import-export turnover reached nearly 22 billion USD, an increase of 5.09% over the same period; of which, the export turnover of goods reached more than 11.8 billion USD, an increase of 10.49% and the import turnover of goods reached more than 10 billion USD, a decrease of 0.61% over the same period in 2022.

It is estimated that in 2023, the province's total import-export turnover will reach more than 31 billion USD, an increase of 3% compared to 2022; of which, the export turnover of goods will reach nearly 17 billion USD, an increase of 6.45% and the import turnover of goods is estimated to reach more than 14 billion USD, an increase of 0.06% compared to 2022.

Important contributions to export turnover include enterprises operating in the field of manufacturing and exporting complete motorbikes, motorbike spare parts; computers, electronic goods and components; phones and components, auto parts; wood and wood products; textiles...

Export markets mainly focus on countries such as the United States, Russia, Japan, China, South Korea and some countries in the European Union (EU), Association of Southeast Asian Nations (ASEAN)...

A representative of Vitto Group Joint Stock Company (Tam Duong II Industrial Park - Area A) said: From the beginning of 2023 until now, due to the impact of military conflicts in some countries, the high prices of some goods and input materials have affected the production and business activities of most enterprises, especially enterprises producing and distributing ceramic tile products.

Thanks to the province's support and facilitation in implementing policies and solutions to support businesses in recovering production and business, Vitto Group Joint Stock Company has more motivation, boldly invests, innovates production equipment, creates tile products with beautiful designs, superior quality, meeting many demanding markets...

Thanks to that, not only has the growth momentum been restored, the products have been widely consumed in most provinces and cities across the country with more than 120 distributors, but the company's products have also been present in many countries such as Thailand, Laos, Taiwan (China), Malaysia, Indonesia, the US, Korea... with more than 20 distributors abroad. In the first 9 months of 2023, the company's revenue reached more than 2,300 billion VND, creating stable jobs for more than 1,500 workers.

However, according to the assessment of the functional sectors, the participation in the implementation of FTAs in the province still has many limitations because most of the enterprises in the area are small-scale, the initiative in international economic integration is not high; meeting strict standards and technical trade barriers is still a big challenge for the province's exports. Besides, the investment attraction environment still has some bottlenecks that do not meet the requirements of international economic integration...

To continue to synchronously implement and effectively exploit new-generation FTAs, the Provincial People's Committee directed departments, branches, sectors and localities to continue to focus on removing difficulties and creating favorable conditions for production and business activities to develop; effectively implement FTAs, especially new-generation FTAs that Vietnam has signed such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Free Trade Agreement between Vietnam and the European Union (EVFTA), the Vietnam - United Kingdom Free Trade Agreement (UKVFTA) to help officials, organizations and businesses grasp and apply flexibly and effectively.

Proactively coordinate with central ministries and branches to promptly review, specify, and complete regulations and support policies to implement FTAs more effectively; support exports in finding import and export information related to FTA partners with Vietnam and potential markets, helping businesses change their method of supplying goods, in accordance with the requirements of the market supply chain in the new period.

Guide export enterprises to enjoy tariff incentives of effective FTAs of which Vietnam is a member in the Chinese market, ASEAN markets, Korea, Japan and markets of countries in the Eurasian Economic Union...

Luu Nhung

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