Hanoi (VNA) - Boosting support forVietnamese enterprises to capitalise on free trade agreements (FTAs) and engagemore deeply in global supply chains is an important solution to fuel post-pandemicexports and economic recovery, the Export Forum 2020 held in Ho Chi Minh Cityon November 18 heard.

Pointing out the challenges facing exports,participants cited the World Bank (WB) as saying that the COVID-19 crisis has hadan unprecedented impact on matters such as healthcare, the economy, and societyaround the world, while at the same time worsening protectionism.

Growing automation and the withdrawal of manycountries from global value chains may make it hard for processing and manufacturingand export strategies to prove effective in emerging markets and developedeconomies, according to the WB.

It also held that although Vietnam has an openeconomy, its participation in global and regional value chains remains modestand much lower than that of ASEAN countries like Singapore, Thailand,Indonesia, Malaysia, and the Philippines.

Vietnam created just 20.4 billion USD in 2018 viaits involvement in value chains, ranking 53rd among 174 economies. Itsparticipation in complex stages of those chains also remains low.

Nguyen Huu Tin, Director of the HCM CityInvestment and Trade Promotion Centre (ITPC), cited the World DevelopmentReport 2020 as showing that Vietnam’s engagement in value chains is currentlyat the “limited processing-manufacturing” level.

The country should move to higher levels invalue chains to improve productivity, he said.

Vice Chairman of the HCM City People’s CommitteeLe Thanh Liem said the city’s trading activities have greatly contributed to thetrade revenue of the country as a whole, noting that its exports have increased10 percent annually on average for many years, with industrial productsaccounting for over 80 percent of total revenue.

He acknowledged, however, that the impact ofCOVID-19 and continual changes in trade trends in many regions have considerablyaffected the city’s exports.

Therefore, assisting businesses to access marketinformation, join global supply chains, and raise localisation rates in exportitems are among the city’s top priorities for sustaining export growth and shoringup its economy, Liem added.

Tin said the ITPC has been actively carrying outprogrammes to help enterprises capitalise on advantages generated by FTAs andpromote Vietnam’s involvement in global supply chains.

During the COVID-19 pandemic, instead offace-to-face support activities, the centre has provided assistance online toupdate companies about market information and help them seek partners.

Knowledge about FTAs, especially theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)and the EU-Vietnam Free Trade Agreement (EVFTA), has also been disseminated viadifferent forms, to help businesses make use of the preferential treatment offeredunder those trade deals, he noted.

Echoing this, Pham Thiet Hoa, General Directorof the Saigon Agriculture Corporation, pointed to the need to optimise the advantagesbrought about by new-generation FTAs in order to boost the participation of Vietnameseagricultural products in global supply chains, saying these agreements featurepreferential tariffs on such commodities.

Many experts at the forum suggested the strongerapplication of modern technologies and equipment in production, the diversificationof products and markets, greater connectivity with partners in supply chains, theoptimisation of logistics services, and brand building, all of which should beimplemented immediately to raise revenue and sustainability in Vietnam’s exportsector./.