ftas play a crucial role in enhancing exports, says ministry of industry and trade
Published on: January 27, 2024.
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VIETNAM, January 26 –
HÀ NỘI – In order to achieve a targeted 6% growth in exports in 2024, amounting to US$377 billion, the Ministry of Industry and Trade (MoIT) has outlined a strategic focus on utilizing existing Free Trade Agreements (FTAs) and signing new ones. The emphasis is on expanding and diversifying markets, import-export products, and supply chains, with a special focus on sustainable mainstream exports that contribute to brand building.
According to the ministry, the global economy is expected to experience slowdowns in 2024, which may negatively impact developing economies like Việt Nam. Protective trade policies, concerns about consumer safety, sustainable development, and the effects of climate change in developed nations have led to the establishment of new standards and regulations that affect supply chains, raw materials, labor, and the environment for imported products.
Preliminary statistics from the Vietnam General Department of Customs reveal a 7.5% decrease in exports from the Southeast Asian economy in the first half of January 2024, totaling $15.1 billion. However, the export value of fruits and vegetables increased notably by 50%, reaching approximately $229.37 million compared to the same period last year.
Despite a decrease in quantity, Việt Nam’s rice exports surged by almost $20 million in the first half of January 2024. The average export price per tonne of rice saw a significant increase from $507 to $693, resulting in a 36.68% rise in the average export value.
Trần Thanh Hải, Deputy Director of the Import-Export Department under the MoIT, stated that there are favorable factors in the global and domestic economic context that will support import-export activities in 2024. The Federal Reserve’s decision to halt interest rate hikes, along with the gradual decrease of inventories in many markets, presents opportunities for Vietnamese goods.
However, the ministry acknowledges the unpredictable risks in import-export activities in 2024, including the rising trend of trade protectionism, changes in shipping routes due to tensions in the Red Sea, and impacts on key export products from markets prioritizing sustainable products.
To support export businesses, the ministry will continue to maximize Việt Nam’s leverage in existing FTAs, promote awareness of rules of origin, and facilitate the issuance of certificates of origin. Market information dissemination, focused trade promotion activities, and assistance in overcoming new trade barriers are also part of the comprehensive strategy.
Vũ Bá Phú, Director of the Trade Promotion Agency under the MoIT, stated that measures have been taken to improve technical support programs in collaboration with international organizations. These programs aim to enhance the capacity of the manufacturing sector, particularly focusing on regulations related to the Carbon Border Adjustment Mechanism (CBAM) and green standards set by Germany and the EU.
He further emphasized that as 2024 unfolds with a mix of opportunities and challenges, it is recommended that businesses remain vigilant and proactive, closely monitoring global and domestic production dynamics, supply and demand, and commodity prices. Timely and effective solutions are essential to achieving the set export goals in 2024 and for the 2021-2025 period. VNS
Source: EinNews
