The Vietnamese economy looks set to benefit from joining new generation free trade agreements (FTAs) which will have a great impact on the expansion of the local import-export market and new online business models.

Participating in FTAs will see import and export turnover to partner countries increase as a way of solidifying traditional markets, while also opening up the prospect of doing business in new markets on the basis of promoting relations with important economic strategic partners.

The promotion of export activities, coupled with trade liberalisation in general and new generation FTAs in particular, will ultimately serve to boost export activities. Indeed, provisions stated within the FTAs force member economies, including the nation, to restructure and open up new markets, whilst striving to create attractive goods.

During the initial month of the EVFTA coming into force, there were over 7,200 sets of certificates of origin (C/O) of EUR.1 form, with a turnover of US$277 million from goods exported to the EU.

Although the emergence and global spread of the novel coronavirus (COVID-19) pandemic cast a shadow over the economic development prospects of the world in general and Vietnam in particular, many economies are in the process of accelerating their participation in various FTAs

With the only effective measure in place being social distancing as a means of avoiding direct person-to-person contact, COVID-19 has caused great disruption to the global supply chain, making it challenging with regard to the risk assessments carried out by enterprises.

Promoting non-traditional fields, including e-commerce, amid the complicated developments of the pandemic can also be viewed as a solution to overcome the economic disruption in terms of supply and demand. This is largely down to supply chains in every country and in every economic sector being severely affected.

In the current context, e-commerce can be considered to be an effective means in which to support domestic and international trade during the COVID-19 pandemic.

The application and use of electronic means not only brings about benefits from the perspective of consumers, but also for businesses. This can be of great help to connect customers, expand trade exchange, and access new business opportunities moving into the new normal.

Moving forward, future supply chains will not only revolve around performance and cost management, but will focus on the level of security and resilience of specific supply chains. This view is held by world leaders, as recorded from the latest "Global Financial Leadership Survey on COVID-19" published by PwC in May. According to the survey, leaders are planning to change their supply chain strategy to feature a more comprehensive style.

As a means of fully taking advantage of opportunities from joining new generation FTAs and thoroughly exploiting new online business models, both private and Government sectors must step up efforts to accelerate the process of digital transformation in the near future.