Promoting businesses’ participation in global value chain
15:18 | 04/02/2020

VGP – After more than 10 years since its admission to the World Trade Organization (WTO), Viet Nam has now become the 22nd largest export economy in the world.

Promoting businesses’ participation in global value chain

Integration has brought numerous opportunities for Vietnamese businesses to expand their market access, as well as to connect and participate more deeply in the global production network.

Effective integration

Since joining the WTO, Viet Nam has participated in negotiating and signing 17 free trade agreements (FTAs), 14 of which have already been inked, thus becoming the most open economies fostering trade ties with over 230 global markets.

Particularly, Viet Nam currently has 15 FTAs with the G20 countries. Vietnamese companies have gradually been expanding and approaching the global market, as most of the barriers in international trade have been gradually removed, while the barriers concerning legal procedures have also been reduced and become simpler.

These are the chances for firms to connect and participate more deeply in the global value chain and production network. As a result, Viet Nam’s exports have increased rapidly posting an annual growth rate of over 15% in the period of 2011-2019 and officially reaching US$500 billion in turnover in mid-December 1919.

This achievement is even more significant in the context of decline in the world economy and trade, which is due to the impacts of trade conflicts and fierce competition between the world’s powers.

Many of Viet Nam’s export items hold an important position in the export ranking of the world, including garment and textile – seventh in the world with revenue of US$39 billion, and leather and footwear – third in the world in production and second in terms of exports with a turnover of about US$17 billion.

Developing sustainable markets for businesses

In the continuous implementation of international integration commitments, especially the implementation of integration commitments in important new-generation FTAs, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Viet Nam-EU Free Trade Agreement (EVFTA), Viet Nam will continue to take effective and appropriate measures to support businesses in accessing the market, with an immediate measure of building and organizing the effective implementation of an action plan on the implementation of FTAs.

In addition, to realize the opportunities and overcome challenges from integration, an urgent issue is to improve the competitiveness of enterprises.

Recently, at the Viet Nam Reform and Development Forum 2019 (VRDF 2019), Prime Minister Nguyen Xuan Phuc asked the Minister of Planning and Investment and leaders of ministries, sectors and localities to listen to the shared international experience, knowledge and recommendations from domestic and foreign experts, to work out the appropriate directions for Viet Nam, directly contributing to the completion of the draft development strategy for 2021-2030 and the draft five-year socio-economic development plan for 2021-2025, towards realizing the aspiration to build a strong and prosperous Viet Nam.

By Vien Nhu

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