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COVER STORY
sonal information protection laws the Viet-
namese Government has drafted for public EFFECTIVE FTAS, AS OF MAY 2021
comment in light of the rules in the CPTPP.
If enacted, the regulations will hinder the
free flow of data within the digital economy.
Status
Partners
In addition, awareness and training are FTA St P a r t n e r s
necessary to take advantage of FTAs. The
JETRO survey revealed that 16 per cent 1 AFTA E!ective since 1993 ASEAN
of companies can technically use FTAs
but don’t in practice. Reasons include “I 2 ACFTA E!ective since 2005 ASEAN, China
don’t know if it is an applicable item” and 3 AKFTA E!ective since 2007 ASEAN, South Korea
“I don’t know the system or procedure”.
4 AJCEP E!ective since 2008 ASEAN, Japan
BOOSTING EXPORTS
FTAs are a good macro stepping stone 5 VJEPA E!ective since 2009 Vietnam, Japan
for Vietnam’s exports. But in addition to 6 AIFTA E!ective since 2010 ASEAN, India
the efforts of businesses, the government
needs to smoothen administrative proce- 7 AANZFTA E!ective since 2010 ASEAN, Australia, New Zealand
dures for imports and exports. Regulations
need to be clear, transparent, and convenient 8 VCFTA E!ective since 2014 Vietnam, Chile
to create motivation among enterprises to 9 VKFTA E!ective since 2015 Vietnam, South Korea
develop export items. Mr. Andrew Jeffries,
Country Director of the Asian Development 10 VN-EAEU FTA E!ective since 2016 Vietnam, Russia, Belarus,
Bank (ADB) in Vietnam, said global trade Kazakhstan, Armenia, Kyrgyzstan
is recovering strongly and relatively quickly
compared to the aftermath of the Great 11 CPTPP E!ective since Australia, Brunei, Canada, Chile,
Recession. “Pre-pandemic trends are December 30, 2018; Japan, Malaysia, Mexico,
expected to catch on by the end of 2022,” E!ective in Vietnam New Zealand, Peru, Singapore,
he added. “The recovery in market demand since January 14, 2019 Vietnam
and prosperity in global and regional value
chains bring many opportunities for Viet- 12 AHKFTA E!ective in ASEAN, Hong Kong (China)
nam’s exports. However, Vietnam also Hong Kong (China),
needs to overcome challenges to reduce Laos, Myanmar, Thailand,
trade costs and help SMEs [small and Singapore and Vietnam
medium-sized enterprises] integrate into since June 11, 2019
supply chains and gain resilience.”
When participating in new-generation 13 EUVFTA E!ective since Vietnam, EU (27 members)
FTAs, standards in import markets can be August 1, 2020
quite high, with commitments higher and 14 UKVFTA Temporarily e!ective Vietnam, UK
deeper than in traditional agreements. In since January 1, 2021;
terms of the US market, Mr. Dustin Daugh- O"cially e!ective since
erty, North American Business Development May 1, 2021
Manager at Dezan Shira & Associates, said
that it won’t be easy for Vietnamese enter- 15 RCEP E!ective since ASEAN, Australia, China, Japan,
prises to send goods to the country and January 1, 2022 New Zealand, South Korea
take advantage of the incentives on offer.
Elsewhere, the UKVFTA will bring Source: Center for WTO and International Trade (WITC) under the Vietnam Chamber of Commerce and Industry (VCCI)
real benefits in improving and standard-
izing trading rules, including by enhanc-
ing transparency and boosting sustainable and various licensing operations is vital to origin fraud, and tax evasion, and has coor-
development. “In the longer term, I would improving smoothness and speed. “E-com- dinated with press agencies to report on
advocate for a gradual approach to merce is changing the conventional logistics measures to combat fraud and forgery in
reopening, with commensurate steps to system, so Vietnam must improve its roads, origin and provide information on cases
ensure interested UK investors are able ports, highways, airports, and warehousing that have been detected and handled by
to travel and access the market,” Ambas- infrastructure,” he noted. “If the domestic competent authorities. The MoIT will con-
sador Ward said. “We encourage Vietnam logistics sector remains under-developed, tinue to organize training programs on
to establish a stable legal framework, FTAs will not bring their full benefit. We trade remedies for associations and busi-
implement policies with a clear long- would also like to see the branding of nesses, to improve their capacity to avoid
term vision, and create motivation to ‘Made in Vietnam’.” being sued in export markets. In addition,
meet development demands according To support exporters, the MoIT has it will continue to implement solutions it
to international commitments and developed an early warning system to has focused on in the past to support busi-
national economic growth strategies.” monitor and provide timely information nesses and promote exports, such as con-
Mr. Nakajima said that the number of to relevant parties, especially manufacturers, tinuing to organize effective exploitation of
FTAs has increased but the development exporters, and industry associations, accord- FTAs, expand and diversify export markets,
and operation of domestic laws have not ing to Minister Dien. It has also developed and help businesses take advantage of com-
kept pace. Strengthening customs clearance information bulletins on trade remedies, mitments in new-generation FTAs. %

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