FTAs between Vietnam and the markets have been maximised. (Source: VNA)

Ta Hoang Linh, Director of the European-American Market Department under the MoIT, said to maximise advantages and minimise challenges to both exports and imports, the ministry will keep a close watch on market developments, as well as changes in terms of politics and policies in the regions and the world in order to give timely warnings to businesses and consultancy to the Government.

It will also coordinate with relevant sides, associations, enterprises and localities to implement development strategies, and optimise free trade agreements (FTAs) and other cooperation frameworks to diversify markets, products and distribution channels, he added.

The Ministry will work to raise awareness of domestic producers and exporters about the approach to circular economy, and sustainable production and consumption, thus changing their mindset in production, according to the official.

The MoIT reported that trade between Vietnam and the European-American markets dropped about 9.5% last year to 208 billion USD, with exports worth of 166 billion USD, down 9.6%.

Experts explained that the decline was due to the global economic slowdown in the first half of 2023, and the sluggish and uneven recovery of economies worldwide in the second half. At the same time, inflation and political uncertainty have changed consumption habits in the market.

Regarding advantages for the trade, Linh pointed out that FTAs between Vietnam and the markets have been maximised, and the consumption demand is bouncing back.

Furthermore, industrialised countries continue to promote strategies to diversify sources of supply, supply chains, and investments, turning Vietnam into an important production and export centre in the global value chain, he continued.

Regional countries are also boosting the green economy, digital transformation and the circular economy, which are advantages of the Vietnamese business community, opening up many new cooperation opportunities as well, Linh said.

For challenges, the official said the economic growth in the world and the European and American markets this year is forecast to be lower than in 2023, plus persistent geopolitical conflicts and uncertainties, and the trend of "globalisation".

Countries have also imposed more protectionist policies, he said, adding that developed countries are paying more attention to sustainable development, climate change response, and consumers' safety, prompting the formation of new, more stringent standards and regulations to imports.