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Learn how to take advantage of Vietnam's FTAs.An example of this is the recently launched VSmart phone manufactured by Vietnamese conglomerate Vingroup. Second – through partnership with foreign firms that can transfer the knowledge and technology needed to make the jump into higher value-added production. This can be done in two ways – first, through more diversified sourcing partners through larger trade networks and cheaper imports of intermediate goods from partner countries, which should boost the competitiveness of Vietnam’s exports. The benefits of the free trade agreements will enable Vietnam’s economic development to continue to shift away from exporting low-tech manufacturing products and primary goods to more complex high-tech goods like electronics, machinery, vehicles, and medical devices. Additionally, due to its membership in the Association of Southeast Asian Nations (ASEAN), Vietnam has become a party to several FTAs that the regional trade bloc has signed. Over the past few years, Vietnam has been active in signing bilateral trade agreements with countries throughout the world. In 2007, with Vietnam’s ascension into the World Trade Organization (WTO) – it took a significant step integrating with world trade and subsequently entering into several free trade agreements. They determine the value of tariffs and duties that countries impose on imports and exports.
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Nevertheless, challenges remain as Vietnam will need to embark on further domestic reforms to ensure it can remain competitive.įree trade agreements (FTAs) are when two or more countries agree on the terms of trade between them.Vietnam hasn’t shied from participating and looking at free trade agreements beyond ASEAN and at the international community to fuel its growth as shown recently by the EVFTA and the UKVFTA.Vietnam has used its participation in international free trade agreements as an instrument to ensure increased economic power and financial security.