Implementating the Resolution No. 22-NQ/TW of the Politburo on international integration, in 2014, Vietnam has actively engaged in international financial cooperation topics and achieved practical results, gradually raising the status of Vietnam in regional and global financial cooperation. In addition to the multilateral WTO Agreement, Vietnam became the member of seven bilateral and multilateral free trade agreements with important partners.
Illustration photo: H.Thọ
Viet Nam is promoting negotiation and conclusion of a number of bilateral and multilateral agreements such as Vietnam – EU, Vietnam - Customs Union including Russia, Belarus and Kazhackstan (VCUFTA), Vietnam - 4 Nordic countries (EFTA), Regional Comprehensive Economic Partnership (RCEP) and especially the strategic Trans-Pacific Partnership (TPP) and Vietnam-Korea Trade Agreement. 2014 is the intermediate stage in the commitment of Vietnam after the initial 5-year period of economic reform and policy development to match the commitments with attention to practical benefits of the economy.
Financial integration has contributed significantly to economic reform, trade growth and investment climate. The implementation of the commitments in the FTA and participation in cooperation forums have become the driving force for enterprises to accelerate reform, actively redirect investment, improve business capacity, transfer technology to increase competitiveness. The trade balance has remarkably improved and trade volum has increased.
Vietnam has cut import duties on raw material inputs to production, reducing production costs for domestic enterprises, enhancing price competiviteness. The liberalization of commodity markets gives opportunities for the development of servive markets, most notably banking. In addition, domestic consumers have access to a variety of goods with reasonable prices. The expansion of FTA with multiple partners not only helps to avoid dependence on a certain number of markets for raw materials but also diversifies export markets, especially emerging markets to replace the traditional market.
Transparency, openness and soundness in the policy management and development are becoming factors to assess the progress of the management system. With deepening integration, the formulation of policies is improved, making the policy system closer to international practices and creating significant changes in the economy of Vietnam.
However, there are always challenges accompanying opportunities for the business community: In addition to tax incentives, export enterprises should pay special attention to non-trade barriers, such as technical standards and food safety, consumer tastes and policies of the destination countries./.
T.Tien
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