MoIT accelerates FTA Portal improvement

Many businesses are still less interested in FTAs - photo: VNA

According to the Ministry of Industry and Trade, Vietnam signed 17 FTAs (including 15 agreements that have already taken effect) and is negotiating three other FTAs. These include new generation FTAs – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA).

The Ministry assessed trade relations between Vietnam and its FTA partners have been growing well despite the COVID-19 pandemic and adverse changes in the global economic and political situations. FTAs have helped Vietnamese businesses increase and diversify goods exports. Vietnam’s seafood, produce, textile-garment, footwear, wood and wood product, component, and machinery and equipment exports all recorded an encouraging growth rate.

MoIT attributes the achievements to the improved FTA information by ministries, sectors and localities.

However, there remain a number of problems. The Ministry said too many (347) FTA conferences, seminars and workshops on FTAs, including CPTPP, EVFTA and UKVFTA, among others, were held in 2022, almost one event per day; some with overlapping contents.

A large number of businesses are not interested in FTA information activities, and a number of FTA events attracted only one-third to half of the number of visitors they targeted. FTA information provided by localities needs to be more detailed and specific and hasn’t satisfied businesses’ need. Meanwhile, major, experienced exporters are not concerned about FTA information events, as they have already had information they need. There are cases where several similar conferences and seminars were held in the same place by different organizers.

As a consequence, the utilization rate of tax incentives set out in FTAs remains lower than expectations. Specifically, the utilization rate of tax incentives set out in CPTPP is five percent, while that related to EVFTA is 26 percent and that associated with UKVFTA is 24 percent. Although exports to major FTA markets, including the EU, CPTPP economies (Canada and Mexico) and the UK, have grown significantly, these markets have made a relatively modest contribution to Vietnamese provinces’ export values, with the contribution rate reaching less than 10 percent in many provinces.

The Ministry of Industry and Trade says it is necessary to reduce common conferences and seminars but increase those mentioning issues in which businesses are interested, such as sustainable development and ways to take advantage of FTA incentives. It is also important to organize dialogues in order to help businesses overcome difficulties upon FTA implementation.

The ministry emphasizes the need to diversify FTA information and dissemination activities, making them not only include conferences, seminars, books and other publications but also high-quality online information. It will strengthen coordination with other ministries, sectors and localities to improve FTA information.

MoIT has proposed that other ministries, sectors, localities and associations update it on their FTA information activities so that the ministry can share this information on the FTA Portal, aiming to provide businesses with better and easier access to FTA information.