Utilization of tariff preferences under Vietnam’s FTAs in 2022
According to data from the Ministry of Industry and Trade, the total export turnover taking advantage of
About 4 billion USD, equivalent to 60% of Vietnamese products, should enjoy zero CPTPP tax, but businesses still need to take advantage.
This is the assessment recently released by the Trade Affairs agencies. Accordingly, CPTPP is a large market with great potential for Vietnamese export enterprises.
Although the export turnover of some Vietnamese products to the markets of CPTPP countries is positive, the value of the products is still modest, and the market share needs to be commensurate with the potential.
According to the Trade Office, the reason is believed to be because businesses are unaware of the importance of developing their brand.
Mainly still processing and exporting raw materials.
Although there are no specific statistics on the number of Vietnamese enterprises exporting to CPTPP with their own brands, the number is generally very modest.
Ms Trinh Huyen Mai, Deputy Head of the Trade Promotion Policy Department, Department of Trade Promotion (Ministry of Industry and Trade), said that currently, export enterprises are mainly SMEs, with the main form still being outsourcing or exported in raw or raw form.
On the other hand, when witnessing that the rate of using preferential tariffs in CPTPP for exported goods to Canada is still too low, Ms. Tran Thu Quynh, Commercial Counselor, Vietnam Trade Office in Canada, could not help but feel sad. Ms Quynh said that the rate of using preferential tariffs has only reached about 18%, while 81% of Vietnam's exports still use MFN tariff preferences.
Some things businesses need to keep in mind
To take advantage of trade promotion activities to effectively build and develop brands, the Department of Trade Promotion (Ministry of Industry and Trade) noted that businesses should proactively increase product value by Regularly improving quality and diversifying products to suit target markets.
In particular, pay attention to issues of great concern to schools, such as green transformation, sustainable development, and compatibility with consumer tastes.
According to the Trade Promotion Department representative, in addition to investing in a thorough brand strategy, businesses must also pay attention to periodic communication plans and register and protect intellectual property rights for their products and product brands in foreign markets.
For his part, the representative of the Department of Multilateral Trade Policy (Ministry of Industry and Trade) pointed out that there are Vietnamese export products that only account for about 3% - 5% of the host country's goods, while the market capacity is is so large that businesses need to think about ways to increase the proportion of Vietnamese goods in export markets effectively.
Build your brand in export markets.
To do this, businesses first need to think about standards. Each country has its standards, but it must ensure food safety and required market conditions, such as green and clean products, even through digital transformation.
Increasing the amount of exported goods with Vietnamese brands to the CPTPP market is the task of management and trade promotion agencies and the important role of businesses and industry associations.
Businesses must make a difference and build sustainable value for their brands. Thereby increasing the value of Vietnamese goods to markets in CPTPP and taking full advantage of opportunities from new-generation FTAs.
