{"id":76576,"date":"2024-06-10T08:24:00","date_gmt":"2024-06-10T01:24:00","guid":{"rendered":"https:\/\/neu.edu.vn\/baochinhphu-vn-part-3-resolutely-leveraging-advantages-for-mutual-gains-under-signed-ftas-interview-with-assoc-prof-dr-nguyen-thuong-lang\/"},"modified":"2024-06-10T08:24:00","modified_gmt":"2024-06-10T01:24:00","slug":"baochinhphu-vn-part-3-resolutely-leveraging-advantages-for-mutual-gains-under-signed-ftas-interview-with-assoc-prof-dr-nguyen-thuong-lang","status":"publish","type":"post","link":"https:\/\/neu.edu.vn\/en\/baochinhphu-vn-part-3-resolutely-leveraging-advantages-for-mutual-gains-under-signed-ftas-interview-with-assoc-prof-dr-nguyen-thuong-lang\/","title":{"rendered":"Baochinhphu.vn: Part 3: Resolutely Leveraging Advantages for Mutual Gains Under Signed FTAs. Interview With Assoc. Prof. Dr. Nguyen Thuong Lang"},"content":{"rendered":"

(Chinhphu.vn) – To Make Greater Use of the Advantages Offered by FTAs, Vietnamese Businesses Need to Candidly Assess Their Difficulties, Strengths and Weaknesses, Identify External and Internal Factors, Reposition Themselves, and Focus on Their Strongest Product Categories and on Brands That Develop Sustainably and Deliver High Added Value.<\/h2>\n
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\"Part<\/a><\/div>
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Vietnamese businesses need solutions that are “appropriate and on target” to seize major market opportunities, participate more deeply in global value chains and access modern technology to maximize benefits.<\/p>\n

Recently, Prime Minister Pham Minh Chinh has repeatedly emphasized that “knowing yourself and knowing others” is crucial to making the most of FTAs and promoting imports and exports.<\/p>\n

The Prime Minister stressed the need for effective coordination at home and abroad, among ministries and sectors, and among businesses, the State and the public. Businesses must be dynamic, creative and proactive in adapting to the situation in the spirit of the “three togethers”: listening and understanding together; sharing a vision for action; and working, benefiting, winning and developing together.<\/p>\n

“Know Others and Know Yourself” for Mutual Gains<\/h2>\n

Discussing solutions to make FTAs a genuine driving force and give Vietnam’s economy “wings” to soar, Assoc. Prof. Dr. Nguyen Thuong Lang (School of Trade and International Economics, National Economics University (NEU))<\/strong> said Vietnamese businesses need solutions that are “appropriate and on target” to seize major market opportunities, participate more deeply in global value chains and access modern technology. According to Assoc. Prof. Dr. Nguyen Thuong Lang, the first and greatest impact of FTAs is to maximize market expansion in both breadth and depth. To capitalize effectively on this impact, businesses need to proactively invest in market surveys and research to gain a firm understanding of partners’ needs, following the principle of “selling what the market needs.” They should actively promote their products at fairs, exhibitions, forums, conferences, seminars and business matchmaking events to find suitable partners.<\/p>\n

Each business needs a professional unit to collect, process and update information, forecast trends and develop effective market entry scenarios.<\/p>\n

Participating in FTAs essentially means connecting value chains and penetrating deeper into global value chains. To establish substantive connections, businesses must meet the rules of origin stipulated in each agreement. They must never commit origin fraud or circumvent trade remedies, which would undermine their credibility with stakeholders.<\/p>\n

Most Vietnamese businesses (approximately 90%) are small and medium-sized. This makes it difficult for them to cover vast markets or achieve economies of scale; they lack investment in high technology and are vulnerable to competitors taking over their markets or even forcing them out. Businesses therefore need to proactively build connections within and beyond their industries to strengthen mutual support, complement one another’s advantages and improve their capacity to fulfill large orders.<\/p>\n

Businesses should invest in research, development and innovation. These factors create differentiation, know-how and core competitive advantages for businesses.<\/p>\n

According to World Bank (WB) estimates, Vietnam’s research and development expenditure amounts to only 0.5\u20131% of GDP. This explains why domestic businesses have few highly innovative products on the global market.<\/p>\n

In addition, FTA commitments tend to expand in scope to cover non-tariff barriers and stringent requirements concerning technical standards, sanitary and phytosanitary measures, rules of origin, growing area codes, traceability, conformity with standards, local content, environmental protection, e-commerce and labor standards, among others. This trend indicates that commitments place greater emphasis on technical, technological, environmental and labor issues than on purely trade-related matters.<\/p>\n

“Consequently, the demand for innovation is substantial, and innovation is becoming a new foundation for these commitments. If businesses do not fully capitalize on opportunities to invest in research, development and innovation, FTAs could become a ‘commitment trap’ for them,” Assoc. Prof. Dr. Nguyen Thuong Lang observed.<\/p>\n

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\"Part<\/a><\/div>
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Businesses should invest in research, development and innovation in production.<\/p>\n

Repositioning Themselves<\/h3>\n

Expert Doan Huu Tue said that, alongside the macro-level solutions set out by the Government, ministries, sectors and local authorities, businesses themselves must improve their awareness and take action grounded in practical realities to make good use of FTA opportunities.<\/p>\n

Vietnamese businesses need to reposition themselves to focus on product categories identified as their strengths and commit to those categories over the long term, while also focusing on brands that develop sustainably and deliver high added value.<\/p>\n

Businesses should focus on and work toward responsible, environmentally friendly products throughout the process, from raw materials to production, processing and consumption, eventually ensuring that packaging is environmentally friendly as well. For its part, the banking sector needs to advise businesses on how to access green credit from international organizations.<\/p>\n

Businesses should prioritize promoting high-value-added processed products at realistic, competitive prices and with appropriate quality, complying with standards and import regulations; actively devote attention and investment to developing markets; and closely and regularly monitor political and security developments in partner markets to respond promptly in transactions involving the signing of sales contracts and the transportation of imports and exports, while safeguarding their business interests.<\/p>\n

Businesses need to obtain and update market information and research tariff preferences in regions covered by FTAs, particularly new-generation FTAs, to plan for the sustainable supply of exports that meet the standards of their chosen markets and align with local advantages. They should strengthen linkages to build competitiveness, develop brands and invest in raw material growing areas to secure their export supplies.<\/p>\n

Businesses also need to clearly recognize the importance of protecting brands, copyright, intellectual property and industrial designs, among other things, to avoid unnecessary risks when participating in FTAs.<\/p>\n

“To boost exports and expand markets for key local products, businesses need to improve the effectiveness of their international economic integration efforts, forge close links with one another and coordinate with industry associations to enhance their competitiveness and accelerate their integration. In particular, they need to focus on three areas to increase export value: developing exporting businesses, diversifying export markets and improving the quality of export products,” Mr. Tue emphasized.<\/p>\n

\n
\"Part<\/a><\/div>
<\/figcaption><\/figure>\n

Vietnam’s Free Trade Agreement Portal (FTAP) was established and developed with technical assistance funding from the Australian Government, administered by the World Bank.<\/p>\n

Providing Continuous Information and Strengthening Efforts to Resolve Business Difficulties<\/h3>\n

According to a representative of the Ministry of Industry and Trade, imports and exports currently face numerous difficulties arising from complex and unpredictable global and regional developments, while high inflation has reduced export orders. Conflicts breaking out in many places are disrupting global supply chains and increasing production and freight costs.<\/p>\n

The Ministry of Industry and Trade has been focusing on implementing a range of measures to boost exports, with particular attention to resolving difficulties for businesses and promoting the use of FTAs.<\/p>\n

Specifically, the Ministry has proactively worked with export industry associations and major exporting businesses across industries to identify difficulties and obstacles in goods production and exports, address matters within its authority, or compile and report them to the competent authorities for monitoring and direction.<\/p>\n

It has directed the network of Vietnam Trade Offices abroad to regularly and continuously update information on host-market regulations and policies and provide timely information and recommendations to industry associations and exporting businesses through the websites of the Ministry of Industry and Trade and Vietnam Trade Offices abroad.<\/p>\n

It is strengthening early warnings of trade remedy cases, guiding businesses on how to respond to such cases and promptly providing businesses and associations with market information, demand updates and new regulations.<\/p>\n

Regarding measures to promote the use of FTAs, the Ministry has been diversifying its approaches to widely publicizing FTA preferences, including through the Internet and social media; ensuring the effective operation of the online Certificate of Origin issuance system and the origin self-certification mechanism; reviewing and simplifying C\/O issuance procedures; and introducing electronic C\/O declarations. If we do not strive to take advantage of these opportunities, we will fall behind and be left out of the game.<\/p>\n

\n
\"Part<\/a><\/div>
<\/figcaption><\/figure>\n

With strong export growth, Vietnamese steel products are currently among the goods most frequently subject to trade remedy investigations initiated by foreign countries.<\/p>\n

Alongside efforts to address difficulties facing businesses and promote the use of FTAs, the Ministry of Industry and Trade has been implementing other measures to boost exports. These include helping local businesses participate in trade promotion activities to develop domestic and export markets, such as trade fairs and exhibitions and in-person and online business matchmaking between suppliers and purchasing businesses, international distributors and foreign importers.<\/p>\n

The Ministry is coordinating with the Ministry of Agriculture and Rural Development and the Ministry of Foreign Affairs in negotiations to open export markets, particularly for fruit and crop products.<\/p>\n

It regularly publishes the Agricultural, Forestry and Fishery Market Bulletin on its portal; issues advisories on changes in policy implementation in major markets such as China, the United States, Japan and the EU; and compiles and publishes the handbooks \u201cEssential Information for Exporting Agricultural and Fishery Products to the Chinese Market\u201d and \u201cA Guide to Exporting Fruit and Vegetables to China Through Official Channels.\u201d<\/p>\n

It is improving efficiency and managing the pace of customs clearance for imports and exports at border gates along the Vietnam\u2013China border, while promoting a rapid and substantial shift toward exports through official channels.<\/p>\n

In the coming period, the Ministry of Industry and Trade will continue to proactively coordinate with ministries and agencies to advance negotiations and sign new FTAs with other partners that offer considerable untapped potential; help businesses make the most of opportunities under these agreements; and maintain regular dialogue to identify difficulties and obstacles in each export sector so that it can promptly provide solutions and boost goods exports.<\/p>\n

The successful negotiation of and participation in FTAs have demonstrated Vietnam\u2019s capacity for international economic integration. However, this is only a good launchpad for development. A vast international \u201cplaying field\u201d with strict rules requires the players\u2014businesses\u2014to make considerable efforts. Alongside support policies and measures from the State, the \u201csweet rewards\u201d of FTAs still await businesses with sufficient capabilities and a proactive approach to adaptation.<\/p>\n

Reporting team<\/strong><\/p>\n

Link: https:\/\/baochinhphu.vn\/bai-3-quyet-liet-tan-dung-cac-loi-the-de-cung-thang-trong-cac-fta-da-ky-102240530164515931.htm<\/a><\/p>\n

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

(Chinhphu.vn) – To Make Greater Use of the Advantages Offered by FTAs, Vietnamese Businesses Need to Candidly Assess Their Difficulties, Strengths and Weaknesses, Identify External and Internal Factors, Reposition Themselves, and Focus on Their Strongest Product Categories and on Brands That Develop Sustainably and Deliver High Added Value. Vietnamese businesses need solutions that are “appropriate and on target” to seize major market opportunities, participate more deeply in global value chains and access modern technology to maximize benefits. Recently, Prime Minister Pham Minh Chinh has repeatedly emphasized that “knowing yourself and knowing others” is crucial to making the most of FTAs and promoting imports and exports. The Prime Minister stressed the need for effective coordination at home and abroad, among ministries and sectors, and among businesses, the State and the public. Businesses must be dynamic, creative and proactive in adapting to the situation in the spirit of the “three togethers”: listening and understanding together; sharing a vision for action; and working, benefiting, winning and developing together. “Know Others and Know Yourself” for Mutual Gains Discussing solutions to make FTAs a genuine driving force and give Vietnam’s economy “wings” to soar, Assoc. Prof. Dr. Nguyen Thuong Lang (School of Trade and International Economics, National Economics University (NEU)) said Vietnamese businesses need solutions that are “appropriate and on target” to seize major market opportunities, participate more deeply in global value chains and access modern technology. According to Assoc. Prof. Dr. Nguyen Thuong Lang, the first and greatest impact of FTAs is to maximize market expansion in both breadth and depth. To capitalize effectively on this impact, businesses need to proactively invest in market surveys and research to gain a firm understanding of partners’ needs, following the principle of “selling what the market needs.” They should actively promote their products at fairs, exhibitions, forums, conferences, seminars and business matchmaking events to find suitable partners. Each business needs a professional unit to collect, process and update information, forecast trends and develop effective market entry scenarios. Participating in FTAs essentially means connecting value chains and penetrating deeper into global value chains. To establish substantive connections, businesses must meet the rules of origin stipulated in each agreement. They must never commit origin fraud or circumvent trade remedies, which would undermine their credibility with stakeholders. Most Vietnamese businesses (approximately 90%) are small and medium-sized. This makes it difficult for them to cover vast markets or achieve economies of scale; they lack investment in high technology and are vulnerable to competitors taking over their markets or even forcing them out. Businesses therefore need to proactively build connections within and beyond their industries to strengthen mutual support, complement one another’s advantages and improve their capacity to fulfill large orders. Businesses should invest in research, development and innovation. These factors create differentiation, know-how and core competitive advantages for businesses. According to World Bank (WB) estimates, Vietnam’s research and development expenditure amounts to only 0.5\u20131% of GDP. This explains why domestic businesses have few highly innovative products on the global market. In addition, FTA commitments tend to expand in scope to cover non-tariff barriers and stringent requirements concerning technical standards, sanitary and phytosanitary measures, rules of origin, growing area codes, traceability, conformity with standards, local content, environmental protection, e-commerce and labor standards, among others. This trend indicates that commitments place greater emphasis on technical, technological, environmental and labor issues than on purely trade-related matters. “Consequently, the demand for innovation is substantial, and innovation is becoming a new foundation for these commitments. If businesses do not fully capitalize on opportunities to invest in research, development and innovation, FTAs could become a ‘commitment trap’ for them,” Assoc. Prof. Dr. Nguyen Thuong Lang observed. Businesses should invest in research, development and innovation in production. Repositioning Themselves Expert Doan Huu Tue said that, alongside the macro-level solutions set out by the Government, ministries, sectors and local authorities, businesses themselves must improve their awareness and take action grounded in practical realities to make good use of FTA opportunities. Vietnamese businesses need to reposition themselves to focus on product categories identified as their strengths and commit to those categories over the long term, while also focusing on brands that develop sustainably and deliver high added value. Businesses should focus on and work toward responsible, environmentally friendly products throughout the process, from raw materials to production, processing and consumption, eventually ensuring that packaging is environmentally friendly as well. For its part, the banking sector needs to advise businesses on how to access green credit from international organizations. Businesses should prioritize promoting high-value-added processed products at realistic, competitive prices and with appropriate quality, complying with standards and import regulations; actively devote attention and investment to developing markets; and closely and regularly monitor political and security developments in partner markets to respond promptly in transactions involving the signing of sales contracts and the transportation of imports and exports, while safeguarding their business interests. Businesses need to obtain and update market information and research tariff preferences in regions covered by FTAs, particularly new-generation FTAs, to plan for the sustainable supply of exports that meet the standards of their chosen markets and align with local advantages. They should strengthen linkages to build competitiveness, develop brands and invest in raw material growing areas to secure their export supplies. Businesses also need to clearly recognize the importance of protecting brands, copyright, intellectual property and industrial designs, among other things, to avoid unnecessary risks when participating in FTAs. “To boost exports and expand markets for key local products, businesses need to improve the effectiveness of their international economic integration efforts, forge close links with one another and coordinate with industry associations to enhance their competitiveness and accelerate their integration. In particular, they need to focus on three areas to increase export value: developing exporting businesses, diversifying export markets and improving the quality of export products,” Mr. Tue emphasized. Vietnam’s Free Trade Agreement Portal (FTAP) was established and developed with technical assistance funding from the Australian Government, administered by the World Bank. Providing Continuous Information and […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[724],"tags":[],"class_list":["post-76576","post","type-post","status-publish","format-standard","hentry","category-economic-information","post-no-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=76576"}],"version-history":[{"count":0,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76576\/revisions"}],"wp:attachment":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=76576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=76576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=76576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}