Vietnam launches FTA Index to boost local trade performance

Vietnam launches FTA Index to boost local trade performance

Vietnam released its inaugural FTA Index on April 8, a new set of indicators measuring how well localities are implementing Vietnam's free trade agreements (FTAs).

Prime Minister Pham Minh Chinh attended the announcement ceremony of the FTA Index. Photo: congthuong.vn

This initiative is expected to act as both a benchmark and a catalyst for improving the effectiveness of FTA enforcement nationwide. It aims to empower localities and businesses to better engage in global trade and integrate into regional and global value chains.

Vietnam has signed and implemented 17 FTAs with over 60 partners across the globe, a critical enabler for the country’s sustained economic growth and global economic positioning.

In his opening remarks, Minister of Industry and Trade Nguyen Hong Dien emphasised the urgent need for deeper integration amid shifting global dynamics. “The world is changing rapidly. Strategic competition and trade conflicts among major economies are intensifying. Protectionism is expanding. For instance, the United States recently announced countervailing tariffs ranging from 10 to 49 per cent on imports from various countries, posing new challenges to the global trade order,” he said.

In this context, FTAs act as key highways connecting Vietnam’s economy with the world, offering significant advantages in boosting trade flows and market access.

Minister Dien acknowledged that FTA implementation remains uneven across provinces, underlining the necessity of having a consistent, data-driven assessment tool. The FTA Index will provide transparent, objective, and comprehensive insights into how effectively each locality fulfils its FTA commitments.

He added that the index would support the government and relevant ministries in developing more targeted and actionable policies, thereby enhancing the competitiveness of the business community and promoting sustainable trade development.

The FTA Index also serves as a testament to Vietnam’s commitment to trade liberalisation, fair competition, and sustainable economic growth.

A detailed presentation of the aggregated FTA Index scores for all 63 cities and provinces. Photo: FTA Index 2024

Prime Minister Pham Minh Chinh praised the MoIT’s efforts, calling the FTA Index “a pioneering effort in quantifying and evaluating FTA performance”. He emphasised the index as a professional, data-driven tool that demonstrates Vietnam’s commitment to integration and its ability to create mutual benefits for both domestic and international partners.

“Vietnam is an export-driven economy, but we must pursue sustainable, high-standard integration,” said the PM. “There is no ‘red carpet and roses’ on the path of global integration, only challenges that demand effort, discipline, and innovation.”

He concluded, “With 17 FTAs covering over 60 economies worldwide, Vietnam has not only expanded its export markets but also triggered deep domestic reforms. The harder the challenge, the greater our determination must be to overcome it.”

VIR