Vietnam to cash in on FTAs, trade promotions to boost exports
The Ministry of Industry and Trade (MoIT) will capitalise on signed free trade agreements (FTAs) to diversify markets, step up trade promotions and shift to exports through official channels with a view to gaining US$377 billion in export revenue this year.
The moves come amidst a gloomy outlook anticipated for the global economy in 2024, with trade defence measures to be rolled out in foreign countries to protect domestic production.
Vietnamese exporters will find it more challenging to break into foreign markets as there are growing concerns about consumer safety, sustainable development and climate change. This results in the application of new standards and regulations related to supply chain, materials, workforce and environment on imported products. Recent tensions that have increased logistics costs and shipping time will also affect Vietnamese firms.
Statistics from the General Department of Vietnam Customs, as of January 15, Vietnam shipped overseas some US$15.1 billion worth of products, falling 7.5% from the second half of December 2023.
Deputy Director of the MoIT’s Agency of Foreign Trade Tran Thanh Hai said that the ministry will continue support for enterprises in taking advantage of the FTAs to bolster exports, while enhancing the communications work to raise awareness of traceability as well as opportunities and challenges from the trade pacts.
Assistance will be given to localities, associations and enterprises to carry out large-scale trade promotion events, helping popularise products of the region’s strength in the target markets, he said.
Along with stepping up negotiations and signing of new trade deals and commitments, the ministry will work to develop logistics services and back businesses to overcome trade barriers in import markets.
Vietnamese firms are advised to stay prudent and keep a close watch on the global supply and demand situation so as to have timely and effective response.
Director of the MoIT’s Vietnam Trade Promotion Agency (Vietrade) Vu Ba Phu said that the ministry will roll out a multitude of technical support programmes for the production sectors, especially those covered by the EU’s Carbon Border Adjustment Mechanism (CBAM), and green standards from Germany and the EU.
Furthermore, it will join hands with Vietnamese trade offices and representative agencies in foreign countries to provide local firms with the latest information on green agreement guidance, conditional business lines and circular economy.
