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Vietnam joined FTA: Chance to restructure the market
15/07/2015

Joining FTA is an opportunity for businesses to restructure the market, innovation in thinking and in the way business.

Vietnam is entering the doorway deep integration with a series of free trade agreements has been prepared to be signed. To enhance competitiveness and take advantage, Vietnam is continuing to improve institutional, enabling all economic sectors to develop.

However, besides the incentives will benefit from the Free Trade Agreement, Vietnam enterprises have much work to do to prepare for this great opportunity.

Until now, Vietnam has signed 10 free trade agreements bilaterally and multilaterally. While 2 new Agreement was signed a free trade agreement Vietnam-Korea Free Trade Agreement on Vietnam-Union Eurasian Economic.

Free trade agreements provide new opportunities for businesses, enabling enterprises to develop, especially in the countries abolish import duties. Besides, the opportunity to participate in the supply chain of the business will increase, contributing to stabilizing production, improving the competitiveness of enterprises. Simultaneously, help Vietnam structural balance export market and avoid depending too heavily on a certain market …
Vietnam joined the FTA: the opportunity to restructure the imaging market 0

When participating in the Free Trade Agreement, Vietnamese enterprises will be open more doors for the export market. For an economy that is on the rise as Vietnam is expanding very important market.

Ms. Dang Phuong Dung, general secretary of Vietnam Textile and Garment Association, said that the free trade agreement is an opportunity, the motivation to continue to grow the business, improve competitiveness. This is a big playground where, the screening process takes place extremely harsh and mandatory for enterprises to innovate in both thinking and ways of doing business.

Before the difficulties that face the textile sector joining the agreement, Ms. Dang Phuong Dung shared: Ask about the origin is a challenge, the starting point of the textile industry is very weak in sewing supplies grade raw materials. This is one of the biggest challenges in the textile sector, but besides that, we must recognize the agreement in terms of an opportunity to be able to call for investment, both domestic and foreign.

According to the Ministry of Industry and Trade, with deep reduction schedule of tariff lines of commitment, many agricultural commodities in Vietnam, such as cattle, poultry, processed foods, milk, sugar … will be hard hit . On the other hand, some industries such as automobiles, steel, garments … will also have to compete fiercely with the products of other countries in the region.

To be able to make good use of incentives, the enterprise needs to study, to learn, to update these provisions as well as commitments in free trade agreements. Requires commitment to leverage the integration of Vietnam to implement the restructuring, contributed to economic growth. While expanding export markets, increased competitive advantage for Vietnam’s exports compared with other countries in the region.

Dang Hoang Hai, Director of the European market, the Ministry of Industry and Trade said that the support from this agreement set out a reasonable route to the domestic industry may combine investment, technological innovation, ensure competitive products.

“As the international economic integration, the pressure is to ensure that our products are developed to ensure the competitiveness of the international market. Government pressure may help to goods of Vietnam restructuring, technological innovation and competitiveness to bring Vietnam’s goods, “Hai said.

According to economic experts, the Agreement on free trade has helped Vietnam enterprise integration with the world, and an opportunity to look back at their businesses, meet the demanding requirements of the world. To achieve success, the only way to now rise up and assert themselves on the international market is the need to be more active in understanding the mechanisms and policies as well as finding the right partner.

Mr. Luu Bich Ho, former Director of Strategic Development Institute, Ministry of Planning and Investment said that to prepare for strategic integration and globalization, they now have to compete, continuous innovation and creativity . Along with that, is actively searching the market, understand the needs of the market that will take the goods to yourself to have a strategy, a clear implementation strategy.

“For years we have penetrated the market but their requirements increasingly high, so we must try to raise her up. The opportunity is huge but coupled with the opportunity, the challenge is not small. We must strive to turn challenges into real opportunities stronger, better … to get progress. This sync with the restructuring process. In our day, the key is integration integration is a good opportunity to grow up, this is also a big challenge forces us to change, “said Luu Bich Ho said.

Chance of joining the free trade agreement for Vietnam now is coming very close. Businesses need to accelerate reform, actively diversifying investments, improve, transfer of technology to increase competitiveness, enhance the efficiency of production and business.

In addition to incentives from the agreements that will be a big opportunity for Vietnam to restructure the market, creating a change strongly and have enough to take the world market.

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