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COVER STORY

CAPITALIZING

ON COMMITMENTS

Exports hold great promise in countries Vietnam has signed an FTA with,
but much is needed to benefit to the fullest extent.

NGOC LAN & SONG HA Report

PHOTO: VIET TUAN
ountries with which Vietnam has generation FTAs coming into force will and annual GDP per capita of over $35,000,
signed a free trade agreement continue to open up many new opportunities goods such as coffee, cashew nuts, rubber,
C (FTA) are considered major mar- for Vietnam’s trade, investment, and tourism. vegetables, pepper, rice, and tea will be
kets of potential for exports as the world Exports are forecast to reach $372-380 bil- major contributors to export turnover in
recovers from Covid-19. It won’t be easy lion this year, up 13-15 per cent against the market, according to the MoIT. Ger-
to establish and maintain market share in 2021, and imports $366-372 billion, up 11- many, Italy, Spain, and Belgium will con-
these countries, however, and will require 13 per cent. Vietnam will therefore again tinue to be Vietnam’s primary export mar-
that exporters adopt a long-term strategy. post a trade surplus, of $4-8 billion. kets, with substantial potential for growth.
The EU-Vietnam Free Trade Agree- The CPTPP is the third-largest economic
MARKETS OF POTENTIAL ment (EUVFTA), the Comprehensive and integration bloc in the world, following
According to the Vietnam Trade Pro- Progressive Agreement for Trans-Pacific the Japan-EU Free Trade Agreement
motion Agency at the Ministry of Industry Partnership (CPTPP), and the Regional (JEFTA) and the EU itself. With a market
and Trade (MoIT), the ministry has reviewed, Comprehensive Economic Partnership size of more than 502 million people, total
analyzed, and assessed the possible market (RCEP) will all help businesses in Vietnam GDP in excess of $10 trillion, or about
volumes for the export of key Vietnamese access markets and promote exports. Viet- 13.5 per cent of global GDP and about 14
products in order to implement an export nam’s export markets will continue to per cent of total world trade, and with
promotion plan in the post-Covid-19 period. grow in 2022. major markets including Japan, Canada,
Fourteen export markets and regions Notably, in 2021, with the EUVFTA, and Australia, the agreement promises to
are considered key, especially those that Vietnam’s trade surplus with the bloc stood open up many opportunities once new
are partners of Vietnam in FTAs, which at a record $21 billion. The EU will continue supply chains are formed.
will be the primary driving force for busi- to be viewed as an export market of major Meanwhile, the RCEP will form a mar-
nesses to strengthen the restoration of potential into the future. With 27 member ket of 2.2 billion consumers, accounting
import and export activities in 2022. New- countries, a population of around 516 million, for about 30 per cent of the world’s popu-

8 | VIETNAM ECONOMIC TIMES | MARCH 2022 www.en.vneconomy.vn