Vietnam FTAs cover 60 economies, 90% of global GDP: minister

Vietnam has 15 free trade agreements (FTAs) operational and one pending parliamentary approval, covering more than 60 economies and accounting for nearly 90% of global GDP, said a senior official.

Speaking at a conference on economic diplomacy in Hanoi Friday, Minister of Industry and Trade Nguyen Hong Dien said that since 2021, the start of this government’s five-year term, his ministry has advised the government to start negotiations and sign five bilateral and multilateral FTAs, raising Vietnam’s tally to 19.

Of these, three are being negotiated. Together, the trade deals make Vietnam a regional leader in international integration, opening up markets for Vietnamese exports, Dien said.

Thanks to the FTAs, Vietnam is expected to earn a trade surplus of $26 billion this year, an all-time high despite a decrease in exports due to weaker external demand, he added.

This will be the eighth consecutive year Vietnam posts a trade surplus, contributing to strengthening forex reserves, stabilizing the USD/VND exchange rate and other macroeconomic indicators, he noted.

Vietnam’s external trade surpassed $730 billion for the first time in 2022. However, this is estimated to fall to $683 billion this year due to global headwinds, with an export turnover of $354.5 billion and an import value of $328.5 billion.

Minister Dien said that his ministry has coordinated its economic diplomacy efforts with the Ministries of Foreign Affairs and Agriculture and Rural Development in order to beef up exports.

He said that for an export-reliant Vietnam to sustain economic growth, the country needs to make full use of opportunities and advantages from the signed FTAs and exploit emerging markets that hold great potential for Vietnamese goods.

Vietnam also needs to accelerate talks on new FTAs with potential partners in the Middle East, Africa and South America, opening wider the doors for Vietnamese goods to penetrate those markets, he added.