Researching a separate support package for export enterprises to take advantage of FTAs

There needs to be a separate support package for businesses with export opportunities to take advantage of the requirements of Free Trade Agreements (FTAs), better promoting the advantages and opportunities of FTAs for domestic manufacturing industries.

There needs to be a separate support package for businesses with export opportunities to take advantage of the requirements of Free Trade Agreements (FTAs), better promoting the advantages and opportunities of FTAs for domestic manufacturing industries.

Experts at the Seminar: "Building a separate support program for businesses to take advantage of FTAs"

This is the opinion of Ms. Bui Thu Thuy, Deputy Director of the Department of Enterprise Development, Ministry of Planning and Investment at the seminar: " Building a separate support program for businesses to take advantage of FTAs".

According to Ms. Thuy, within the framework of the Law on Support for Small and Medium Enterprises passed by the National Assembly in 2017, the Ministry of Planning and Investment has coordinated with ministries and branches, including the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and localities to implement many support policies for businesses, especially small and medium enterprises, to improve their capacity.

Includes many support contents for businesses to have enough export capacity, such as training, consulting, upgrading businesses. For example, sending consultants to evaluate businesses on weaknesses, shortcomings, helping businesses rebuild business plans, product market orientation, which export markets, how to perfect products to meet the requirements of FTAs.

But in reality, the lack of market information, technical requirements, and technical barriers in trade from many large markets still make it difficult for businesses. Furthermore, when information is available, it is not easy to meet it.

Because, with current FTAs, the tax is zero or very low, those countries apply many technical barriers. There are even many barriers that businesses have never known about.

For example, in the agricultural sector, it is necessary to record daily interventions with products and product cycles to ensure that the product is truly green. This is a very difficult process and requires businesses to change their entire normal operating process to be able to meet this requirement.

"Therefore, it is time to study a more in-depth program, design a separate support package for businesses with export opportunities to meet and take advantage of the FTA. In short, businesses still need a lot of support ," said Ms. Bui Thu Thuy.

With the coordination of ministries, branches and business associations, this specialized support package, if put into practice, will further promote the advantages and opportunities brought by the FTA.

Of course, when designing a program to support businesses to take advantage of FTAs, we must understand the requirements of the international market.

Ms. Thuy suggested that it is possible to coordinate with banks to promote and consider providing capital according to the value chain as some countries have applied. That is, businesses do not need to have too many collateral assets, but when they know that the business has participated in the chain and has a house waiting to be purchased, the bank will lend with the main mortgage being this value chain."

It is a way to help relieve financial burdens for businesses.

Or to meet the standards, it is necessary to continue to support businesses to upgrade, help businesses change processes, and meet standards from the import market.

"In the past, many central and local agencies have been doing a lot, but it is time for us to review to provide focused and key support," Ms. Thuy emphasized.

For example, business packages for green standards, businesses participating in exports to take advantage of FTAs, that is, must be specific to each package .

At the same time, the financial sector must get involved and amend the State Budget Law so that support policies can be monitored, evaluated, and measured, but also make businesses feel worthy of participation. Review and amend the Law on Support for Small and Medium Enterprises.

"It's time to have policies specifically for business groups and follow more specialized, in-depth support packages, not the current general support," according to Ms. Thuy.

The system of 16 FTAs currently in effect has supported businesses in expanding their markets and customers, thereby accelerating export turnover and enjoying tariff incentives. Thanks to that, Vietnam's trade scale has continuously increased.

In the peak year of 2022, total import-export turnover exceeded 730 billion USD, in 2023 due to general market difficulties, it decreased to 683 billion USD, in 10 months of 2024 it reached nearly 648 billion USD, with a trade surplus of 23.3 billion USD.

According to the Ministry of Industry and Trade, in 2023, export turnover enjoying commitments to eliminate or reduce tariffs under FTA agreements will reach over 86 billion USD, accounting for 37.35% of Vietnam's total export turnover of 230.5 billion USD to FTA markets, an increase of 9.2% compared to 2022.

Although certain results have been achieved, the proportion of exports to FTA markets is still not high, taking advantage of tariff incentives is still limited, Vietnamese enterprises only participate in a very small part of the global production and supply chain, and the proportion of export turnover of domestic enterprises is still low compared to foreign enterprises.

Source: https://baodautu.vn/nghien-cuu-goi-ho-tro-rieng-cho-doanh-nghiep-xuat-khau-tan-dung-fta-d229178.html