Việt Nam is developing a comprehensive free trade agreement (FTA) ecosystem to create a foundation to help domestic producers and exporters better leverage tariff preferences and strengthen competitiveness in the global market, a workshop in Hà Nội was told on Monday.

 

The FTA ecosystem is seen as a strategic step to implement the Government’s directive on enhancing the country’s integration capacity and accelerating trade and economic growth.

 

Deputy Minister Nguyễn Sinh Nhật Tân said at the consultation workshop held by the ministry to draw contributions to the development of the FTA ecosystem, that to date, Việt Nam has signed 17 FTAs with more than 63 partners, including new-generation FTAs such as the EU–Việt Nam Free Trade Agreement (EVFTA), the UK–Việt Nam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

 

Vietnamese enterprises have significantly benefited from the FTAs, as reflected in increases in trade, investment, and development cooperation, Tân said, adding that the FTAs also create favourable conditions for Vietnamese firms to participate deeply in the global supply chain.

 

Still, Vietnamese firms, especially small and medium–sized enterprises (SMEs), continue to face challenges in taking full advantage of the opportunities arising from the FTAs, Tân said.

 

“Developing an FTA ecosystem is therefore a strategic move to strengthen integration capacity and create momentum for trade and economic growth,” he said.

 

According to Ngô Chung Khanh, deputy director of the ministry’s Multilateral Trade Policy Department, domestic enterprises still face substantial challenges in utilising FTA benefits, including a lack of information on import markets, standards and customers, and difficulty in meeting import requirements such as rules of origin, technical standards and sustainability criteria.

 

In addition, domestic enterprises also encounter limited access to capital and technology, with most being of small and medium sizes, weak branding capacity and weak linkage among enterprises, localities and government agencies.

 

Because these problems exist across the entire value chain, Việt Nam needs an ecosystem that connects all relevant stakeholders to make the most of FTAs’ advantages, improve competitiveness and accelerate public–private partnership, Khanh said.

 

The proposed FTA ecosystem model will function as a comprehensive network connecting parties involved in the value chain, from producers, processors, distributors, logistics operators, associations, financial institutions and Government agencies.

 

The model aims to create a culture of connectivity, information sharing and mutual support to enable enterprises to optimise FTA benefits.

 

Khanh said the ecosystem is expected to generate significant economic impacts for Việt Nam, especially in expanding and diversifying export markets, attracting foreign investment, improving productivity and accelerating the shift toward a green and sustainable growth model.

 

The ecosystem would first reinforce Việt Nam’s policy framework for FTA implementation by strengthening the Government’s role in coordinating trade policy and managing resources to help enterprises make the most of tariff preferences, Khanh said.

 

For farmers, participating in the FTA ecosystem would help them access credit and technical support to meet export standards. For enterprises, the ecosystem would improve access to capital and trade intelligence, including market data and customer connections.

 

Khanh, however, emphasised that the ecosystem will only operate efficiently if participants share a common vision and production mindset. The ecosystem is open, but not to everyone, as each participant must meet specific criteria, such as a commitment to sustainable development.

 

“The FTA ecosystem is expected to help Việt Nam not only make better use of FTAs but also lay the foundation for long-term and sustainable economic development,” Khanh said.

 

Mạc Quốc Anh, Deputy President of the Hà Nội Association of Small and Medium-Sized Enterprises (HANOISME), called for the early establishment of an FTA centre in Hà Nội to serve as a bridge providing consultancies on FTAs and rules of origin.

 

He stressed that the centre would provide timely updates of FTAs so that the ratio of enterprises which could utilise tariff preferences under the FTAs would increase from the current 32 per cent to 55 per cent by 2026.

 

In addition, it is necessary to speed up the digitalisation of the certificate of origin (C/O) issuance process to cut processing time by 50 per cent and ensure all applications are processed only and eliminate paper documentation by 2026.

 

Việt Nam also needs to develop an FTA capacity index to assess enterprises’ capacity of access to preferential tariffs, origin management, logistics capacity and green transition.

 

According to Associate Professor Đào Ngọc Tiến, Vice Principal of the Foreign Trade University, once operational, the ecosystem would have a significant impact on economic growth.

 

Specifically, Việt Nam’s GDP growth could be 1.65 percentage points higher in 2025 compared to the baseline and remains above the trend by 2030, with export-oriented services and industrial sectors expected to be the main drivers, he said.

 

The FTA ecosystem would also help accelerate economic restructuring and boost Việt Nam’s trade performance with an improving trade balance, he said.

 

MOU signing

 

 

The MOU signing between Việt Nam’s Ministry of Industry and Trade and the Department of Foreign Affairs and Trade of Australia. — VNA/VNS Photo

At the workshop, Việt Nam’s Ministry of Industry and Trade and the Department of Foreign Affairs and Trade of Australia signed a memorandum of understanding on cooperation to optimise FTAs’ benefits.

 

Australian Ambassador to Việt Nam Gillian Bird highly appreciated Việt Nam’s impressive economic growth, adding that the Australian Government has been working to support enterprises to utilise FTAs in which both Australia and Việt Nam are members, including CPTPP, the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN – Australia – New Zealand FTA.

 

The MOU signing represents an important step in strengthening the relationship between Việt Nam and Australia and lays the foundation for a more favourable business environment, and contributes to addressing global challenges.

 

The MOU not only promotes bilateral trade but also helps farmers and businesses to expand global reach and pursue sustainable growth, she stressed.

 

According to Tân, the signing marked a significant milestone in cooperation between the two ministries and countries towards unlocking the full potential of FTAs and realising the comprehensive strategic partnership between the two countries. — VNS

 

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