FTAs key in boosting export: MoIT

Vietnamese fruits on display at a trade fair in southern Italy. VNA/VNS Trường Duy

HÀ NỘI In a bid to achieve a targeted 6 per cent export growth in 2024, equivalent to US$377 billion, the Ministry of Industry and Trade (MoIT) outlines a strategic focus on leveraging existing Free Trade Agreements (FTAs) and signing new ones. The emphasis is on expanding and diversifying markets, products in import-export, and supply chains, with a special focus on sustainable mainstream exports linked to brand building.

According to the ministry, the global economy will likely continue to experience slowdowns in 2024, which may adversely impact developing economies, including Việt Nam. Protective trade policies, concerns about consumer safety, sustainable development and climate change effects in developed nations have led to the establishment of new standards and regulations affecting supply chains, raw materials, labour, and the environment for imported products.

Preliminary statistics from the Vietnam General Department of Customs reveal a 7.5 per cent decrease in the Southeast Asian economy’s exports in the first half of January 2024, amounting to $15.1 billion. However, the export value of fruits and vegetables notably increased by 50 per cent, reaching approximately $229.37 million, compared to the same period last year.

Việt Nam’s rice export, despite a decrease in quantity, surged by almost $20 million in the first half of January 2024. The average export price per tonne of rice saw a significant increase from $507 to $693, resulting in a 36.68 per cent rise in the average export value.

Trần Thanh Hải, Deputy Director of the Import-Export Department under the MoIT, said there are also favourable factors in the global and domestic economic context for import-export activities in 2024. The Federal Reserve’s decision to halt interest rate hikes and potential reductions, along with the gradual decrease of inventories in many markets, presents opportunities for Vietnamese goods.

However, the ministry acknowledges unpredictable risks in import-export activities in 2024, including the rising trend of trade protectionism, changes in shipping routes due to tensions in the Red Sea, and impacts on key export products from markets prioritising sustainable products.

To support export businesses, the ministry will continue to maximise Việt Nam’s leverage in existing FTAs, promote awareness of rules of origin, and facilitate the issuance of certificates of origin. Market information dissemination, focused trade promotion activities, and assistance in overcoming new trade barriers are also part of the comprehensive strategy.

Vũ Bá Phú, Director of the Trade Promotion Agency under the MoIT, said measures have been taken to improve technical support programmes in collaboration with international organisations. These programmes aim to enhance the capacity of the manufacturing sector, particularly focusing on regulations related to the Carbon Border Adjustment Mechanism (CBAM) and green standards set by Germany and the EU.

He said as 2024 unfolds with a mix of opportunities and challenges, the MoIT recommends that businesses remain vigilant and proactive, closely monitoring global and domestic production dynamics, supply and demand, and commodity prices. Timely and effective solutions are essential to achieving the set export goals in 2024 and for the 2021-2025 period. VNS