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                        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                                     
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