How to take advantage of FTAs?

In order to take advantage of the opportunities from the upcoming Free Trade Agreements (FTAs), the Government needsa specific strategy for the business community to grasp the commitments and rules for each FTA. Enterprises also need to be proactive and creative in their investment and business strategies to adapt both in the short and long term.

According to Minister of Industry and Trade, Tran Tuan Anh, the biggest opportunity that FTAs bring is to expand export markets thanks to commitments on tariff reduction and the removal of trade barriers, creating opportunities for businesses to participate in global production and supply chains.

However, joining FTAs in particular and international economic integration in general also createsmany challenges. The first is the increasing competitive pressure on Vietnamese goods and businesses in the home market, especially in the weak areas of Vietnam.

In addition, the limited level of human resources in Vietnamese enterprises also affects the ability to compete with foreign enterprises.

Shortcomings of the legal system; socio-economic and cultural policies, especially on transparency, administrative reform, and judicial reform have also caused many difficulties for the implementation of commitments and making use of Vietnam's FTAs.

The head of Industry and Trade said that signing and participating in FTAs means integrating into a big playing field, as well as accepting to face new difficulties and challenges.

For successful international integration, taking advantage of the benefits and overcoming the challenges, it is necessary to have close coordination between levels, sectors, and between the central and local levels and with the business community.

Minister Tran Tuan Anh said that Vietnamese enterprises are currently facing unprecedented challenges due to the negative impacts of the Covid-19 pandemic and complicated economic and political developments in the world and the region.

The disruption of global supply chainsmakes it difficult to access raw materials and input materials, narrow the consumption markets at home and abroad; hinder the circulation of goods, resulting in a decline in revenue as well as threats to the viability of the business.

However, behind the above challenges are promising opportunities for businesses to self-adjust their business investment strategies, adapt, capture and take advantage of opportunities.

One of the priority solutions businesses need to focuson is to constantly strive to improve product quality, enhance their competitiveness, thereby improving their position in the regional value chain.

Enterprises need to actively change their business thinking in the new context, turn competition pressure into motivation, innovate, develop themselves and improve product quality to have a competitive advantage not only in the country but also in the international market.

In addition to the ability to flexibly adapt to the changing needs of the market, the business community also needs to take advantage of the opportunity to apply technology as well as information technology in accessing, marketing with partners, creating higher residual value for the business.

Source: Customs News