Trade deals offer opportunities for support industries

11:00 | 11/10/2021 Industry

(VEN) - Free trade agreements to which Vietnam is a signatory are offering opportunities for support industry businesses to participate in global supply chains. To make good use of these opportunities, the state needs to provide more support for businesses to increase their competitiveness.

trade deals offer opportunities for support industries
The Covid-19 pandemic is creating opportunities for support industry enterprises to penetrate global supply chains

Vietnam has joined a series of free trade agreements in recent years, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), the UK-Vietnam Free Trade Agreement (UKVFTA) and the Regional Comprehensive Economic Partnership (RCEP).

According to the Ministry of Industry and Trade, international economic integration has been opening the door for Vietnamese exports and offering opportunities for Vietnamese enterprises to participate more deeply in global value chains and production networks. Given the Covid-19 pandemic, trade deals have created an important driving force for Vietnam’s export growth. For support industry businesses, trade deals are opening up opportunities to participate in global supply chains by supplying large multinational corporations and foreign-invested companies in Vietnam, such as Canon, Samsung, Toyota and Honda.

Dr. Vo Tri Thanh said the Vietnamese economy is facing numerous challenges, including the impact of globalization, increasing protectionism, investment and supply chain shifts due to Covid-19, natural disasters and climate change, creating uncertainties and risks in the international economic integration process.

In recent times, support industry businesses have intensified efforts to improve product quality and increase competitiveness. However, most of them are small-sized, with limitations in terms of human resources, capital, management and capacity.

To resolve current inadequacies, the Vietnam Industry Agency (VIA) under the Ministry of Industry and Trade will focus on reviewing production projects, overcoming difficulties to put projects into operation, improving business capacity, and creating a source of high-quality goods for export.

Ngo Chung Khanh, deputy director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, said the ministry will strengthen information dissemination on free trade agreements and provide more support for businesses in order to help them make good use of opportunities.

Lan Anh & Hoa Quynh