At Binh Duong Apparel Co.Ltd.
Part 2: Enterprises should hold the initiative
Up to now, many bilateral and multi-sided free trade agreements between Vietnam and other nations have taken effect, helping enterprises gain advantages after enjoying 0% tariff. However, many enterprises have yet to learn about FTA’s essence as well as harsh regulations of goods origin, especially apparel, footwear, furniture and more. To take advantage opportunities of FTA, enterprises should hold the initiative and prepare for effective strategy of business.
Many businesses lack of information
Participating in FTA, enterprises will face numerous difficulties of technical issues of FTA such as original principles and procedure of testifying origin of commodities. According to Tran Thi Thu Huong, director of Center for Certificate of Origin for the goods (COVCCI) said that application of structure of Certificate of Origin is a compulsory condition. Accordingly, Vietnamese business community will enjoy many advantages, of which importers and exporters will self-declare origin of goods with competent agencies without submitting C/O. However, once applying this way, many enterprises will be confused implementation of regulations of C/O.
At present, many enterprises have yet to learn clearly about FTA’ essence. Leaders of local companies said that they have yet to learn deeply about FTA. According to Do Thi Kim Loan, general director of Sao Nam Woodwork Company, vice chairwoman of Binh Duong Woodwork Processing Association added that Vietnamese enterprises would face some technical barriers and some legal corridors. Besides, most of Vietnamese enterprises lack of information on FTA. The Ministry of Trade and Industry, Vietnam Chamber of Commerce and Industry have yet held training classes on FTA information for companies.
Aside from the mentioned difficulties, our country still faces obstacles of capacity, poor technology and more. Therefore, enterprises holding the initiative of information, business strategy for integration are very important thing.
Taking advantage of opportunities
According to economists, some large or foreign enterprises have prepared well for integration, owing to good sources. Production and business of these enterprises are close to change of local and international market, so they learn about impact of international integration in every period.
Meanwhile, local and small and medium enterprises lack understanding of requirement and impact of integration.
Therefore, many ideas said that business community wanting to develop should be active and join in global playground, obey international regulations and simultaneously renovate and grasp opportunities and launch implementation of plans and strategies immediately.
Besides, testification and inspection of origin of export goods are very important for enterprises. If enterprises well obey regulations of customs, they will enjoy advantages of certificate of origin.
Improving competition capacity
Do Thi Kim Loan said that joining in FTA, all input materials of timber must have origin, so enterprises must buy materials with clear origin. To take advantage of FTA’s opportunities, Binh Duong Woodwork Processing Assocation held many trade promotion programs in the EU and US. In the last January, the association participated in an exhibition in Germany to grasp new products. Sao Nam timber company alone made a survey in France and Germany to buy materials with clear origin in a bid to prepare well for integration in this year.
Pham Van Xo, chairman of Binh Duong Import and Export Association said that Vietnamese enterprises must compete with goods of other nations, so they should improve competition capacity, quality of goods. He added that businesses need to prepare business strategies, minimize cost and price of products. Moreover, enterprises need to have technique, advanced equipment to make quality products.
Reported by P.Le – Translated by A.C
