Vietnam’s export turnover reached more than US$280 billion in 2020, a 55-fold increase from the figure of US$5 billion in 1995 thanks to the effectiveness of free trade agreements (FTAs) it has signed with partners.
According to the Multilateral Trade Policy Department under the Ministry of Industry and Trade, in recent years, Vietnam’s legal system has been improved on a par with international standards.
Since Vietnam joined the World Trade Organisation (WTO), law making and law enforcement have been bettered with policies broadly consulted in line with international regulations. When Vietnam participated in FTAs, these policies have been perfected.
The scale of domestic businesses has also been upgraded as many enterprises in verious fields such as banking and telecommunications have become the backbone of the economy and reached out to the world.
FTAs have brought great opportunities to Vietnam, reflected by its export growth in major markets. Of those, the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) has created momentum for Vietnam’s exports.
Statistics showed that the country’s exports to CPTPP members have been on the rise. Vietnam saw trade surpluses of US$5 billion and US$6 billion with Mexico and Canada in 2020.
Just five months after the European Union – Vietnam FTA (EVFTA) took effect, Vietnam’s export turnover to the EU grew by 2% as compared to the same period of 2019.
However, there remained challenges regarding the enforcement of sustainability commitments, intellectual property, and e-commerce, the department said.
The Multilateral Trade Policy Department is tasked to organise and resolve difficulties in the implementation of the FTAs. It will focus on developing an FTA index to help management agencies improve their operations and enforcement of the FTAs.
In particular, the Vietnam FTA Portal has been put into operation, so the Department of Multilateral Trade Policy expects that businesses will access and learn about the FTAs and help connect ministries and branches to understand the mechanisms and policies to fully exploit the FTAs.