Signing FTAs, what is the export efficiency for Vietnam?
With the free trade agreements (FTAs) signed, it can be said that Vietnam has integrated deeply to the world. The FTAs open the door of export for Vietnam, creating opportunities for the country to connect and participate deeply in the value chain and global production network.
What is the export efficiency of Vietnam after committing to open the market after signing FTAs?
According to the Ministry of Industry and Trade, Vietnam's FTA markets have recorded high growth rates, especially in very promising markets such as Chile (up 3.6 times after 5 years) or India ( increase by 15.6 times after 9 years), South Korea (by 21.6 times after 12 years).
For export market structure, it is easy to see the transition to countries with FTAs with Vietnam. The markets that Vietnam is promoting to export are Japan, Australia, Korea, Eurasian Economic Union and New Zealand. The remarkable growth records in these markets are ASEAN (reaching 24.85 billion USD, goes up 14.4%), Japan (reaching 18.8 billion USD, goes up 11.7%), South Korea (18.2 billion USD, goes up 23.1%). It is expected that in 2019, the positive numbers of exports will be promoted even further, recording remarkable export efficiency after the FTAs take effect.
Regarding the use of preferential C/O under FTA, Vietnamese export enterprises are gradually integrating, raising the rate of taking advantage of preferential tariffs from markets with FTA with Vietnam. The total value of preferential C/O types under the FTA in 2018 reached US $ 46.2 billion, accounting for 39% of the total export turnover to markets that signed FTAs with Vietnam.
For new markets in the
CPTPP, the export growth after the first 6 months of 2019 has reached 32.9% for Canada and 23.4% for Mexico.
Conclusion
This result is achieved through the cooperation of the government, ministries, sectors, locals and the business communities. The efforts to organize the implementation of various solutions have taken advantage of the opportunities from FTAs. It can be mentioned that the Ministry of Industry and Trade has focused on implementing groups of solutions on dissemination activities so that businesses can take advantage of favorable conditions when exporting to FTA-signed markets, improving their efficiency in exports and cut tariffs. In addition, export promotion activities to countries with
FTA markets have been strengthened. Activities of issuing certificates of origin are simplified. The flow of businesses in the process of granting preferential C/O is also organized. Methods of issuing
C/O via the Internet or promoting enterprises to self-certify have been put into practice, reducing administrative time and creating maximum conditions for enterprises.
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