After signing 17 Free Trade Agreements (FTAs), Vietnam has been successful in expanding its market to 200 nations and territories, including 50 key exporting countries. Vietnam is staying at the top positions in tough markets regarding high export turnover rate. However, the scale of domestic businesses seems not developed to expectations.
All the bi-lateral and multi-lateral Free Trade Agreements (FTAs), along with the Regional Comprehensive Economic Partnership (RCEP) which came into effect on 1 January 2022, have helped in opening up the Vietnamese market to the world.
Economic experts have revealed that the advantages of Free Trade Agreements (FTAs) in Vietnam are mostly taken by Foreign Direct Investment (FDI) businesses. In some situations, this causes even fiercer competitions for domestic enterprises not only in national but also in international markets.
The Ministry of Industry and Trade on December 13 said that it and the South Korean Ministry of Trade, Industry, and Energy have just signed many important documents, including an exchange letter between the Government of Vietnam and the South Korean Government on the implementation of the cumulation of origin of textile materials between the two countries in the EU- Vietnam Free Trade Agreement (EVFTA).
Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Liz Truss signed the agreed minutes on the conclusion of negotiations over the UK-Vietnam Free Trade Agreement (UKVFTA).
Generally, in the first nine months of this year, the total foreign investment capital into Vietnam reached US$21.2 billion. Of which, there were 1,947 newly-licensed projects. Many economic experts affirmed that the free trade agreements (FTAs) that Vietnam has already signed and will sign this year are accelerating the flow of foreign investment to Vietnam.
To ensure a fair competitive environment in the field of trade, the Ministry of Industry and Trade (MoIT) has implemented measures to improve the safeguard capacity for domestic manufacturing industries amid the context that Vietnam participates in new-generation free trade agreements (FTA).
With plentiful orders right at the beginning of this year, garment and textile industry set export target of US$40 billion for this year. However, recently, orders have suddenly dropped drastically, concerning garment and textile enterprises.