Firms urged to take advantage of trade pacts
Firms urged to take advantage of trade pacts
Import-export and logistics firms should take advantage of free trade agreements and Incoterms, a set of international trade regulations, experts have said.
Do Xuan Quang, chairman of the Viet Nam Logistics Business Association (VLA) and also chairman of the ASEAN Federation of Forwarders Association, told a workshop in HCM City yesterday that this would help double foreign trade.
Incoterms are a set of standard international regulations last updated in 2010 and used for commercial transactions and procurement and to communicate the costs and risks associated with goods delivery.
Companies who conform to Intercoms provisions would be able to control cost and time while providing transport and logistics services, he said.
"Most local import-export firms are taking advantage of tax incentives that are available if they have certificates of origin.
"During the economic downturn, taking advantage of tax incentives available under FTAs between Viet Nam and other countries is an effective way to increase exports."
It would also help Viet Nam achieve this year's export target of US$126.1 billion, 10 per cent jump over 2012, he said.
Viet Nam has signed eight FTAs, both bilateral and multilateral, Quang said, citing a Ministry of Industry and Trade report.
Six other FTAs are under negotiations, including the Trans Pacific Partnership Agreement that is set to be signed by year end and the Regional Comprehensive Economic Partnership to be signed in 2015.
If Viet Nam fully implements all agreements signed from now through 2018, its GDP will rise by an additional 3 percentage points per year.
"Import-export enterprises should switch to buying under FOB (free on board) mode and selling under CIF (cost, insurance and freight) mode," Le Duy Hiep, deputy chairman of VLA, said.
Most import-export firms do exactly the opposite despite warnings about financial losses and job losses in sectors like maritime transport and insurance, he said.
The Government should have policies to enable firms to buy under FOB mode and sell under CIF mode for better logistics management and reducing risks, he added.
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