Vietnam has signed a series of FTAs that created opportunities for increasing Vietnamese products export, while these goods has also faced challenges to open market for foreign products.

Opportunities and challenges

In the forum “Strengthening the competitiveness of Vietnam products to face opportunities and challenges from FTAs” held by Ministry of Industry and Trade, Vice Minister Do Thang Hai has pointed out that FTAs had opened export markets, being member of FTAs had contributed to urge Vietnam GDP grow rate up 300%, import-export value increased to 350%.

On the other hand, beside the opportunities of export activities Vietnam enterprise have been facing the challenges when foreign products import more because of tax incentives. Mr. Nguyen Hai Nam, Vice President of EuroCham has told that in 2035 export products of EU would be increase about 29% approximately. “If only EU products import to Vietnam are taken in account, then it had made a big competition for local products. In addition, foreign products are also continuing imported from Thailand, USA, Japan, China… “said Mr. Minh.

Talking about obstacle that enterprises are facing in FTAs implementation, Mrs. Le Viet Nga – Deputy General Director of Domestic Market Department, MOIT said that in the coming time food fields must compete strongly with imported goods from EU, especially fruits. Medical products are estimated as the extremely competition when FTAS issued in Vietnam.

Mr. Tran Duy Dong – Deputy Minister of Plan and Investment said: even though FTAs has brough benefits for Vietnam enterprises to exploit their potential to push up export, in fact these enterprises are mainly FDI firms. Because private sector of Vietnam was just 10% contributed to GDP while FDI sector was about 22-23% contributed to GDP. The main reasons were 96% Vietnam enterprises are SMEs, weak in technology, insight, no strategy thought to use the opportunities from FTAs.

Improvement of quality to strengthen competitiveness

To let Vietnam products can compete against imported goods in time of FTAs, economic experts thought that it is important to strengthen competitiveness by improvement of quality.

Mr. Luong Huu Lam – CEO of Giovani Group thought that even though the imported products have made the pressure for local enterprises, but in the active aspects these is a driving force make Vietnam enterprises try hard to convince customers.

Agree with that opinion, Dr. Tran Dinh Thien – a member of Government consultant Team said that when Covid -19 blooming, the domestic market of 100 million people has demonstrated its unreplaceable role, the growth rate of sale is kept up two digits.

According to Mrs. Truong Thi Ngoc Anh, Vice President of Central Committee of the Fatherland Front, Vietnam firms should not only innovate their quality, packaging, branch name, cost, but also need to active collaborate, linkage to other enterprises, cooperatives, and farmers, to complete supply chains from procedure, farming, processing, and distribution. Facilitating customers to approach products is the particularly important point to attract customers under high competitiveness form foreign goods./.


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