FTAs provide a push for Viet Nam’s exports in 2023
The 15 free trade agreements (FTAs) to which Viet Nam is a member are expected to give a boost to Viet Nam’s export activities this year, towards the growth target of 6 per cent.
Phuc Sinh JSC, based in HCM City, has exported 50 containers of coffee, pepper, cashew nut and other products to Europe, the US and the Middle East in early 2023.
The company shipped about US$50 million worth of goods to Europe in 2020 and $63 million in 2021, which grew some 30 per cent last year.
It is among the hundreds of domestic firms that are effectively utilising the FTAs, contributing to raising Viet Nam’s agro-export revenue to over $53 billion in 2022.
Chairman and General Director of Phuc Sinh JSC Phan Minh Thong noted that with tax incentives, the deals will help Vietnamese goods compete with those from other countries despite difficulties forecast for this year as many major importers are expected to face inflation.
Import-export was Viet Nam’s bright spot in 2022, hitting a record of around $730.2 billion, of which $371.5 billion came from exports, statistics show.
Notably, thanks to the EU-Viet Nam Free Trade Agreement (EVFTA), garment-textile exports to the EU reached $4.46 billion, representing a year-on-year rise of 34.7 per cent.
The sector is projected to rake in $47-48 billion this year, which is within its reach as the FTAs will accelerate the relocation of investment from other countries to Viet Nam, according to Chairman of the Viet Nam Textile and Apparel Association (VITAS) Vu Duc Giang.
Minister of Industry and Trade Nguyen Hong Dien also held that the agreements will further prove their role this year as the market share of many key exports still remains limited in foreign countries.