Businesses of Khanh Hoa Province as well as the country has a lot of opportunities but is facing challenges coming from free trade agreements.
Businesses of Khanh Hoa Province as well as the country has a lot of opportunities but is facing challenges coming from free trade agreements. To stand firmly in the situation of international economic integration, businesses need link together and being supported by the State management agencies.
According to enterprises in the province, free trade agreements will help Vietnamese enterprises to go into foreign markets more deeply thanks to decreases in import tax, costs, and then prices for consumers. Thus, enterprises can sell more products. Now, East Asia is becoming the most active developing area in the world and investment is moving to countries with low labor cost like Vietnam; therefore, Vietnamese enterprises are easy to attract FDI, which helps the ecomonic structure change positively.
However, enterprises also recognized a lot of difficulties and challenges when the international integration of the economy is expanded. Luong The Hung, director of Me Trang Coffee Joint Stock Company said that free trade agreements bring both advantages and challenges for the company’s business. Main export markets of Me Trang Coffee are Russia, the US and some Southeast Asia countries The current instability of Russian economy has made a lot of Russian people cut spending. As a result, the exports of the company to Russian has gone down. Requirements in technologies and trade law systems are also challenges to Vietnamese goods in competition…
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To overcome difficulties and challenges, beside efforts of each enterprise, the connection and link among enterprises in markets, production technologies and legal formalities will uphold advantages of free trade agreements. Besides, enterprises also need support from State management agencies.
According to Tran Van Ngoan, deputy director of the provincial Department of Industry and Trade, for the international economic integration, high quality human resource must be attended, the State need to support capital for small and medium-sized businesses to innovate and improve machines and equipment, and cardes of State management agencies need improve level as well as skill in international economic integration and manage in tendency of 4.0 industrial revolution.
Mai Hoang
Translated by T.T
T.T
