Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that Vietnam has implemented 16 free trade agreements (FTAs) and continues to negotiate new agreements. This opens up great opportunities for domestic enterprises to expand export activities and enhance competitiveness in the international market.

In recent times, many Vietnamese enterprises have actively and effectively taken advantage of free trade agreements (FTAs), helping to increase export revenue steadily and contribute positively to economic development. However, not all enterprises have taken advantage of these opportunities. Some enterprises have encountered difficulties in meeting technical standards and controlling export quality. They also lack information about regulations and requirements of foreign markets.

In addition, businesses have difficulty accessing capital and lack of capital or are stuck with bank regulations due to different fiscal years. Next is the issue of consulting, policy support, and access to foreign markets. Most coffee businesses have not yet built a brand.

The international market is complicated, geopolitical conflicts and the trend of protecting domestic production is increasing. These factors, along with changes in policies, supply and demand, and prices in global coffee consumption markets, are putting great pressure on the sustainable development and competitiveness of the Vietnamese coffee industry.

Mr. Nguyen Cong Luan, Deputy Head of the Import-Export Management Department - Ho Chi Minh City Department of Industry and Trade, said that in the first 9 months of 2024, Ho Chi Minh City's coffee export turnover reached 663,8 million USD, accounting for 16,2% of the country's total coffee export turnover, reaching 4,1 billion USD.

To support businesses in exploiting the benefits of FTAs, the Multilateral Trade Policy Department has developed the project “Ecosystem for exploiting FTAs”. This project aims to optimize the benefits of FTAs for businesses and promote cooperation between management agencies and businesses. The goal is to create an ecosystem that benefits all parties, while building a sustainable value chain for Vietnamese coffee beans in the international market.

According to Mr. Ngo Chung Khanh - Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), in order to comprehensively and effectively handle the above existing problems, the Ecosystem model to support businesses in taking advantage of FTAs was built with the aim of helping businesses optimize FTA benefits; Building a culture of connection, cooperation and promoting cooperation between management agencies and businesses.

The FTA ecosystem has four main components, including: central management agencies (relevant ministries and branches such as the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the General Department of Customs, etc.); local management agencies (Department of Industry and Trade, Department of Agriculture and Rural Development, Department of Planning and Investment, Department of Science and Technology, etc. of localities); enterprises, associations, credit institutions (processing and exporting enterprises, coffee associations, banks and credit institutions); finally, coffee farmers and cooperatives.

Commenting on this project, Mr. Hoang Trong Thuy, expert Agriculture, said that the coffee industry is facing issues such as transportation costs, origin of goods, and certification of growing areas. Building and implementing an FTA ecosystem for the coffee industry is an urgent requirement for sustainable development.

Ms. Chu Thi Quynh Hoa, representative of the Vietnam Banking Association, emphasized that the Association will encourage banks to actively participate in the FTA ecosystem to provide financial support to businesses. As long as businesses have a clear and effective business plan and ensure debt repayment capacity, banks will not hesitate to provide capital support.

Source: Vietnam.vn