Stiff competition looms as more FTAs become effective
Fierce competition looms large on the domestic market when more and more free trade agreements (FTAs) come into effect, said Deputy Prime Minister Hoang Trung Hai on December 29.
Deputy Prime Minister Hoang Trung Hai. (Photo: VNA)
Hanoi (VNA) - Fierce competition looms large on the domestic market when more and more free trade agreements (FTAs) come into effect, Deputy Prime Minister Hoang Trung Hai warned at a meeti🥂ng between the Government and 🏅ministries and local authorities on December 29.
More imported products, particularly from ASEAN member states, will soon enter the domestic market, he said, urging the Ministry of Industry and Trade and the Ministry of Finance to help local businesses enhance their competitive edge while improving their own management capacity so as to well handle any arising issues.
“Imported goods will flood the market, and trade disputes are expected to increase, so we would not be able to protect domestic businesses if timely solutions are not adopted and the management mechanism improved,” the deputy PM stressed.
He noted that while domestic enterprises are able to meet domestic demand and even export, their products still face tough competition from imports, citing steels and fertilizers as examples.
He urged ministries for more effective measures to safeguard local industries.
Echoing Hai’s view, Deputy PM Pham Binh Minh voiced his concern over low levels of public awareness of the ASEAN Economic Community (AEC) and its impacts.
Many Vietnamese exporters have kept their focus on EU, Japan and US markets, leaving regional ones untapped, and a majority of businesses do not actively seek information on AEC, Minh noted.
Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong proposed that ministries should disseminate information on AEC, Trans-Pacific Partnership (TPP) and FTAs more widely and design more support for local enterprises while research technical barriers and anti-dumping and subsidy measures to assist young industries.-VNA
Gold opportunities as well as simultaneous tremendous challenges will be brought to Vietnamese businesses when free trade agreements (FTAs) come into effect.
Vietnam is the country likely to achieve the biggest gross domestic product (GDP) increase in percentage terms by joining the TTP and ASEAN Economic Community in almost all simulation scenarios.
Free Trade Agreements (FTAs) have increased in recent years, posing numerous opportunities and challenges for Vietnamese enterprises since tariffs are no longer a barrier. However, the liberalisation of services and investment is much harder to achieve.
The Vietnam-Republic of Korea (RoK) free trade agreement (VKFTA) is billed as a significant legal framework for enterprises from Vietnam and the RoK to expedite investment and cooperation.
Vietnam’s trade and industry sectors have been warned about fiercer competitions when the free trade agreements (FTAs) that Vietnam has signed take effect.
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Deputy Prime Minister Hoang Trung Hai. (Photo: VNA)
