Billions of dollars of money flow through FTAs
Japan is currently Vietnam’s 4th largest trade partner, and Vietnam’s 3rd largest import-export market with effective support from bilateral FTA agreements. In 2023 alone, the total bilateral trade turnover between Vietnam and Japan will reach 44.95 billion USD, increasing steadily over the years.
Talking to Labor, Mr. Ichiro Hara – Executive Director of the Japan Federation of Economic Organizations (Keidanren) – said that Vietnam and Japan have 4 bilateral FTA agreements. In addition, Japan also signed an FTA with ASEAN. The RCEP agreement will include 10 countries in Southeast Asia with 5 other countries, including Japan. In addition, the CBT Agreement includes the UK as a member, going beyond the Asia Pacific framework.
“In all of the above agreements, in addition to the bilateral FTA and EPA agreements between Vietnam and Japan, all other agreements have the participation of the two countries. This shows that with Japan, Vietnam is an important partner” – Mr. Ichiro Hara said.
Not only that, according to a survey by the Japan External Trade Organization (JETRO), Vietnam is the second most promising country in the world for Japanese companies to expand their business. Therefore, Mr. Ichiro Hara emphasized that Vietnam needs to continue to reform administrative procedures and improve the investment environment and business environment. However, looking at the opposite side, there are some problems that Japanese businesses need to solve: compared to some other countries, Japanese businesses tend to make decisions much slower, this You may accidentally lose your investment opportunity.
Therefore, Japanese businesses are gradually realizing that they need to speed up the decision-making process to be able to seize opportunities and develop together with Vietnam in the coming time.
Expanding to the Atlantic Ocean, EVFTA has heralded a new era of symbiotic relationship and economic interdependence between Vietnam and Europe.
Vietnam has been emerging as an outstanding member of the EU import market and a key supply chain entity, reflecting an increasingly deepening strategic relationship. What’s more, addressing the widening trade deficit could open up opportunities for balance and growth as both economies thrive in an increasingly connected global landscape.
“31% of EuroCham members rank Vietnam among the top 3 global investment destinations and more than half plan to promote Vietnamese investment in 2023, especially in the high-tech manufacturing sector This investment boom highlights the effectiveness of FTAs in attracting sustainable, high-quality FDI and making Vietnam a strategic destination” – Mr. Gabor Fluit – former Chairman of EuroCham shared.
Improve policy transparency and facilitate trade in Vietnam
Currently, Vietnam participates in signing 16 FTAs. Basically, markets with good performance and Vietnam’s major trading partners are all in FTAs. Deputy Director of the Import-Export Department, Ministry of Industry and Trade – Mr. Tran Thanh Hai emphasized that to achieve the export growth target in 2024, the Ministry is continuing to make efforts to implement many proposed solutions. This will expand negotiations on FTAs and disseminate them to realize incentives from FTAs that Vietnam has signed and put into effect. Innovate trade promotion activities and implement digital transformation. Helps businesses facilitate the export of goods and simplify import and export procedures.
Mr. Denzel Eades – Vice President of the British Business Association in Vietnam (BritCham) – highly appreciated the trade agreements that Vietnam has with the UK such as UKVFTA and CPTPP. He said that, for foreign investment in general, addressing regulatory challenges, such as foreign exchange controls, licensing delays and the need for consistency and predictability, is important. . Vietnam should take advantage of international treaties to simplify and eliminate regulations that foreign documents need to be legalized for use, as more than 100 other countries have done.
Mr. Nguyen Anh Duong – Head of General Research Department, Central Institute for Economic Management Research – emphasized that in addition to the need to take better advantage of incentives in FTAs, businesses also need to improve value-added content. increase in exported products. Constantly innovating technology, improving management models, management skills and employee skills is always necessary. At the same time, it is also necessary to adapt more effectively to regulations on sustainable development related to trade in export markets…
Tags: Vietnam welcomes billiondollar cash flow Trade Agreements
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