Vietnam makes better use of FTAs
Vietnam has the largest FTA utilization rate in the Indian market at 72%, Chile and South Korea came second and third at 67% and 60%.
Vietnam’s exports benefiting from utilizing preferential treatments in free trade agreements (FTAs) in 2018 stood at US$46.2 billion, accounting for 39% of total exports to markets signing FTAs with Vietnam and up five percentage points year-on-year.
Illustrative photo.
|
Of the total US$46.2 billion, Vietnam’s exports to China claimed the top spot with US$12 billion, followed by South Korea with US$11 billion and ASEAN with US$8.5 billion.
Notably, the growth rate of Vietnam’s exports utilizing favorable import tariffs to India witnessed the largest increase of 2.6-fold against 2017, reaching US$4.7 billion in 2018.
Overall, Vietnam has the largest FTA utilization rate in the Indian market at 72%, Chile and South Korea came second and third at 67% and 60%, respectively.
According to the report, Vietnam maintains steady growth in FTA utilization rates in ASEAN – India FTA (AIFTA), Vietnam – Chile FTA (VCFTA), and Vietnam – South Korea FTA (VKFTA), as parties involved are in the process of removing import tariffs in commitment to those FTAs.
In recent years, utilization rates of Vietnam from FTAs signed between ASEAN and other partners remain mostly unchanged, partly due to the fact that all parties have completed removing import tariffs.
The report noted Vietnam’s export turnovers to Laos and Cambodia on the back of preferential treatment remained insignificant. The low FTA utilization rates of Vietnam to Laos (0.02%) and Cambodia (10%) were due to the latter two being ASEAN members and exporters in Vietnam taking advantage of the ASEAN Trade in Goods Agreement (ATIGA).
Among Vietnam’s export staples, agricultural products are mostly considered for preferential treatments from FTAs, which easily meet the requirements of wholly obtained (WO) for unprocessed farm products and others regulations for processed products.
Meanwhile, industrial goods have low FTA utilization rates due to difficulties in qualifying for rules of origin.
08:41, 2025/01/11
Vietnam-Laos Industrial Park: New direction to strengthen bilateral ties
Numerous Vietnamese projects in various sectors have effectively contributed to Laos' development, creating jobs and improving the livelihoods of tens of thousands of local workers.
22:19, 2025/01/09
Hanoi's foreign trade turnover hits US$60.1bn in 2024
The city will continue to support businesses in exploring new markets, capitalizing on the Free Trade Agreement of which Vietnam is a member.
11:46, 2025/01/09
Vietnam confident of achieving 8% growth rate in 2025
Key drivers of Vietnam’s growth include institutional reforms and decentralized governance.
14:34, 2024/12/26
UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
Vietnam, in particular, will gain further access to a high-quality market, complementing its connections with Japan, Canada, and Australia.
16:41, 2024/12/16
Hanoi seeks greater efficiency in e-commerce tax management
Hanoi's e-commerce tax administration is expected to be significantly tightened in the near future.
17:34, 2024/12/15
Hanoi's wet markets in decline amid changing consumer behaviors
Local consumers prefer shopping options that offer convenience and assurance of product origin.