Ho Chi Minh City Boosts Business Support for FTA Leverage

Ho Chi Minh City is set to implement a series of tasks and solutions to enhance the effective leverage of Free Trade Agreements (FTAs) by local businesses. This initiative aims to boost the international competitiveness of local firms, promote sustainable exports, expand markets, and foster deeper engagement in global value and supply chains. As the economic powerhouse of southern Vietnam, Ho Chi Minh City seeks to further solidify its pivotal role in the nation's economic growth. The proliferation of FTAs in recent years presents significant opportunities for Vietnamese enterprises to improve access to foreign markets and boost exports. However, maximizing the benefits of these agreements necessitates enhanced understanding and capacity among businesses. The measures by Ho Chi Minh City are expected to encompass providing information and consulting services to help businesses comprehend and navigate the complex regulations and procedures of FTAs. Support in areas such as quality control and brand building is also anticipated. The ultimate goal is to elevate the competitiveness of Vietnamese products in the international arena and transition towards higher value-added exports. Furthermore, this strategy aligns with the broader objective of developing Ho Chi Minh City into a regional hub for trade, logistics, and international economic integration. Amidst ongoing challenges in infrastructure development and human resource training, leveraging FTAs is a crucial key to accelerating economic growth and attracting foreign investment. With Ho Chi Minh City targeting an economic growth rate of over 11% in the third quarter, these business support measures represent a concrete step towards achieving this goal. Under Vietnam's one-party system, economic growth remains a top priority for the government, and an export-driven growth strategy utilizing FTAs is central to this agenda. In terms of relations with China, as supply chains diversify and Vietnam emerges as a new production hub, strengthening economic ties with other countries through FTAs can also be interpreted as a strategy to relatively reduce economic dependence on China.