A hustle of production activities

The first weeks of the year witnessed a flurry of production activates by local enterprises as they strived to fulfill signed orders on time.

According to the Vietnam Textile and Apparel Association (VITAS), factories have been speeding up production activities to meet the delivery schedule as some Vietnamese businesses have received orders until the middle of the year.

The textile and garment industry has set a target of bagging between US$48 – 49 billion from export earnings this year, an increase of US$5 billion compared to last year.

Firms have also devised plans to proactively cope with market scenarios, especially with regard to changes in regulations of product quality and labelling, to maintain production and avoid rising costs.

With regard to farm produce processing, several local firms have drawn up schemes to invest in expanding production capacity in an effort to meet market demand and increase sales.

Meanwhile, the timber and forestry industry aims to achieve an export turnover of over US$18 billion this year by holding trade promotion activities and accelerating green production.

Ngo Sy Hoai, general secretary of the Vietnam Timber and Forest Product Association (Viforest), emphasised that prospects ahead for timber and wooden exports this year are dependent on multiple factors, including global economic recovery, consumer demand in major markets, trade policies, and enterprises’ competitiveness.

Fully tapping into FTAs to boost exports

Vietnam aims to achieve a growth target of 12% for exports this year, meaning that export turnover must rise by over US$4 billion each month.

To fulfill that goal, the Government has requested ramping up trade promotion, diversifying supply chains and import-export markets, improving product quality, and getting involved in the regional and global supply chains.

Enterprises are therefore encouraged to effectively exploit 17 signed FTAs to boost exports to key markets and fully tap into emerging markets, such as the Middle East, Halal (Muslim countries), Latin America, and Africa, as well as speeding up negotiations to sign new FTAs.

Luong Hoang Thai, director of the Multilateral Trade Policy Department, stressed that Vietnam is considered one of the countries that benefit the most from global integration.

In particular, amid a shift in global supply chains, Vietnamese firms have promptly grasped the trends of green and digital transformation to improve exports.

Moreover, the new generation FTAs ​​like the Regional Comprehensive Economic Partnership Agreement (RCEP), the Vietnam - EU Free Trade Agreement (EVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have all proved effective in expanding export markets whilst simultaneously reducing tariff barriers faced by businesses.

Industry insiders pointed out that FTAs ​​have not only helped to promote exports, but have also created opportunities for Vietnam to increase imports of modern technology and equipment from partner countries to further enhance their production activities.