(VOVworld) -  A number of Vietnam’s multilateral and bilateral free trade agreements with other countries have taken effect, which has impacted Vietnam’s economy, businesses, and people. Vietnam will likely sign more trade deals, like the Trans-Pacific Partnership and the EU-Vietnam free trade agreement, with even more commitments to open its market. Vietnamese enterprises can grow only if they learn to make the most of integration, free trade agreements, and bilateral investment treaties and are treated fairly.   

The Đông Anh Mechanics Company, which specializes in manufacturing covers for loudspeakers and telephones and vacuum cleaner tubes, has been listed among businesses eligible for preferential tax incentives on imported materials.

Director General Nguyễn Mạnh Hà said that this is one of the government’s support policies for auxiliary manufacturers.  

He noted that “Firms in the auxiliary industry like us have been supported by the government. Taxes on imported materials for export production have been exempted or slashed. This assistance is necessary for us. In addition to aluminum items, products made by our parent company but related to exports also enjoy tax incentives.”

A recent survey on food processing and electronics, Vietnam’s two hard currency earners, by the Central Institute for Economic Management indicates that government support policies have not been very effective.

Nguyễn Anh Dương, deputy director of the Department for Macroeconomic Policy of the Central Institute for Economic Management, said that “Support measures for domestic companies are modest compared to what is offered by other countries in their initial development period. Countries like the Republic of Korea, Japan, or Thailand, use tariff and non-tariff methods to promote growth. In Vietnam, I’m wondering whether we’ve opened the market too fast without providing adequate support for domestic businesses.”

The recent Central Institute for Economic Management survey reveals that only 20% of businesses in food processing and electronics, are aware of tax reductions in line with FTAs and only 10% know about preferential treatments for foreign invested companies in that industry.

The Institute’s deputy director Võ Trí Thành said the figures are quite alarming and highlight the need for the government to increase the exchange of information on international integration programs and the details of trade deals.

Enterprises should be more proactive in information sharing and looking for consultancy on policies and trade deals.

Minister of Planning and Investment Bùi Quang Vinh said “I’m particularly worried that our businesses haven’t made careful preparations. The most important task is to increase communications, and training for all companies so that they understand what the free trade agreements will men and what they should do to take advantage and avoid any downside. Recently we have been actively involved in international integration but haven’t got a specific plan to disseminate information to businesses, local administrations, and sectors about future challenges and ways to overcome them. We should do this immediately.”

To make full use of FTAs and BITs, economists says Vietnam should create a fair business environment and remove discrimination among economic sectors .