Enterprises capitalizing on opportunities from Free Trade Agreements
- Monday - 14/03/2022 14:25
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With a series of signed Free Trade Agreements (FTAs), Vietnam has become one of the world's leading countries in deep integration. This gives businesses the opportunities to expand investment cooperation and export goods with many important partners.
In the past two years, the Covid-19 pandemic has severely affected Vietnam's industrial production, but export turnover has continued to increase. At the same time, Dong Nai Province has been attracting large amount of capital from foreign direct investors (FDI) into Vietnam. In 2021, Vietnam's export turnover of goods reached US$336.25 billion, up 19% compared to 2020.
Manufacturing machinery components for export at Boss Industry Co., Ltd.
in Song May Industrial Zone, Trang Bom District.
FTA helps exports increase
Vietnam's goods have now been exported to most countries and territories around the world. However, the main export markets of our country are the United States, the E.U., and Japan. Major export items are textiles, footwear, electronics and components, wood products, machinery and equipment, tools and spare parts, agricultural products, seafood, etc. FTAs are considered a lifeline during the Covid-19 pandemic, helping enterprises to recover production and export quickly.
Ms. Delphine Rousslet, Executive Director of the European Business Association in Vietnam said: “Vietnam's goods exported to the EU increased fastest when the Vietnam-EU FTA was signed and took effect. The EU has become a large and important market for Vietnam. More and more FDI enterprises, including EU enterprises investing in Vietnam and Dong Nai Province to enjoy tax incentives when exporting goods to countries that Vietnam has signed FTAs with”.
In 2021, despite being heavily affected by the Covid-19 epidemic, Dong Nai's export turnover still reached more than US$21.8 billion, increasing more than 16% compared to 2020 because businesses have exploited the advantages from FTAs to restore and expand production.
Mr. Kim Chi Hyung, General Director of Hyosung Vietnam Co., Ltd. (Nhon Trach 5 Industrial Zone, Nhon Trach District) said: “Currently, Hyosung has invested in Vietnam about US$3.24 billion and Dong Nai Province alone is US$1.8 billion. The field of investment by Hyosung is the production of yarns for export to many countries and regions around the world. In recent years, Hyosung continuously expands production and exports in Dong Nai as well as some other provinces to exploit tariff preferences from the FTAs that Vietnam has signed.
Enterprises are still expanding investment
FTAs not only open up export markets and increase competitiveness for enterprises when many tax lines have been or are being reduced to 0%, but also help attract better FDI investment. With 16 signed FTAs, including major agreements such as CPTPP, EVFTA, and RCEP, Vietnam has become an attractive destination in the ASEAN region. Since the CPTPP and EVFTA have officially taken effect, many tax lines have been reduced to 0%, helping businesses increase their competitiveness with similar products from other countries when exporting to the same market.
Ms. Sunny Chen, Deputy General Director of Shing Mark Vina Co., Ltd. (Bau Xeo Industrial Zone, Trang Bom District) said: “Since investing in Dong Nai, the company has increased capital several times to expand its production and export to enjoy incentives from the FTAs that Vietnam has signed. The company intends to continue to expand investment in the province in the field of industry and a number of other fields.
Many FDI corporations in Dong Nai such as Amata, Fujitsu, Hyosung, Nestlé, Taekwang, Lixil, Meggitt, Schaeffler, etc. said that in the coming time they will continue to increase investment capital in the province in a number of fields such as: industry, trade in services, real estate, logistics, and tourism.
According to Vice Chairperson of the Provincial People's Committee Nguyen Thi Hoang, in order to welcome high-quality FDI inflows into the province, Dong Nai is rushing to complete procedures to expand and build many new Industrial Zones. The Government has approved the planning for Dong Nai 39 Industrial Zones, of which 32 Industrial Zones have been established and 7 Industrial Zones are about to be established. In the coming time, the province will continue to accompany businesses, create favorable conditions, connect regional traffic, prevent the Covid-19 epidemic, keep a stable production and business environment so that investment projects can achieve high efficiency.
Vi Quan