VN’s FTAs in review

Illustration photo

So far, a string of new-generation FTAs have come into force, expecting to forge stronger integration for the country and stimulating its trade ties as well.

Technology transfer

Associate Lu Dan, Deputy Chairman of the Union of Science and Technology Associations of Ho Chi Minh City was quoted as saying that after Viet Nam signed FTAs, foreign investment inflows were stronger, leading to unceasingly increasing export and import turnovers. International and multinational groups and corporations also brought in high-tech equipment and technologies, thus transforming domestic production, products, and services.

The trade liberalization and economic integration have enabled Vietnamese products in general and HCMC’s ones to go to the global market.

So far, products made in Ho Chi Minh City are chiefly exported to Asian nations and made up 53.7% of the country's market shares.

Economic integration has opened up more doors for Vietnamese exporters to set foot in other markets, including the U.S. and the EU, said Mr. Tran Vinh Nhung, Deputy Director of the HCMC Industry and Trade Department.  In the 2011-2015 period, 79 countries and territories got 6,380 FDI projects worth US$ 40.86 billion in HCMC.

In addition, the integration process has also helped the domestic scientific and technological sector establish links with world-class ones. The models of joint-venture companies offered a good chances for domestic enterprises to catch up with modern technologies; minimize development gap; and better management and manpower skills.

Chairman of the HCM City Association of Garment-Textile-Embroidery-Knitting Association Pham Xuan Hong said that the sector developed at a fast average rate of 10% over the last decade. Domestic enterprises reshuffled their organizations.

Promoting training

To greet new FDI inflows, the Vietnamese Government has spared no effort to better competitiveness and tap FTA opportunities.  

A representative from the American Chamber of Commerce and Industry (AmCham) in HCM City said that they were concerned about good quality labor force which is ready to serve foreign companies. Thus, AmCham cooperated with Vietnamese universities to develop the manpower force.

However, Viet Nam’s labor productivity only yearly grew about 4%, lower than its regional peers, said  Sebastian Eckardt, who is the World Bank's Lead Economist for Viet Nam. The economist believed that better labor productivity would bolster economic growth and nurture domestic enterprises./.

By Kim Loan