More solutions for businesses to take advantage of tariff incentives from FTAs

The rate of export turnover using preferential tariffs under FTAs should reach 40-45% by 2025. Photo: H.Dau

Specifically, regarding a number of goals on business development, the VCCI said that the target of "the business sector contributes about 65-70% of the country's GDP, about 30-35% of the total employment in the economy, and 98-99% of total import and export turnover” has not clarified the proportion and role of the domestic private sector compared to FDI enterprises, while domestic enterprises are the driving force in long-term sustainable development.

In addition, the VCCI suggested that the goal of reaching 1.5 million enterprises should be clearly stated, which must be 1.5 million enterprises in operation, in order to more closely reflect the "health" of the economy, the degree of convenience of the business investment environment.

In particular, emphasizing the role of export activities, VCCI believes that it is necessary to promote preferential exploitation of free trade agreements (FTAs).

According to VCCI, the rate of export turnover using preferential tariffs under FTAs ​​should reach 40-45%. Because the average rate of export turnover using preferential tariffs under Vietnam's FTAs ​​is quite modest, only 32.7% in 2021. Therefore, authorities need to support businesses to take advantage of tariff preferences, as this is the most easily realized benefit aspect of FTAs ​​from a business perspective.

Moreover, VCCI has also given opinions related to the group of solutions to overcome supply chain disruptions, diversify export markets, and expand domestic markets.

Regarding to the tasks of the Ministry of Industry and Trade, VCCI proposed adding additional tasks to support the establishment of stable, smooth and reliable distribution channels, especially for agricultural products.

For activities to promote international market expansion, VCCI suggested organizing general national brand promotion campaigns, national trade promotion programs for each prominent product group; through deals, overseas Vietnamese trade promotion centers to establish information channels, connect and support businesses when doing business with foreign markets, taking advantage of opportunities from foreign countries FTA for import and export of goods and services.

The business community also suggested that relevant agencies should promptly handle problems in order to reduce and overcome inadequacies in export logistics, especially for agricultural products in the Mekong river delta and the border with China; pilot implementation of self-certification of origin mechanism under FTAs, especially new generation FTAs, to facilitate enterprises to use preferential tariff under these agreements.

The Ministry of Agriculture and Rural Development needs to closely monitor the requirements, conditions and procedures for exporting agricultural products to the Chinese market, in order to provide information and guidance to manufacturers and exporters of agricultural products; strengthen negotiations and agreements with potential market partners; setting up more facilities, testing centers, handling non-tariff barriers SPS, TBT for exported agricultural and aquatic products, reducing costs related to testing and treatment.

Regarding solutions to improve the business investment environment and reform administrative procedures, representatives of the domestic business community said that it is necessary to implement effective and practical business dialogue activities, ensuring that these dialogues involve micro, small and medium enterprises.

At the same time, it is necessary to promptly publicize the results of the evaluation of the process of handling recommendations of the business community.

For the Ministry of Finance, VCCI suggested that it is necessary to add the task of improving the conditions for professional individual securities investors, auditing organizations, and asset valuation after carefully assessing the impact.