With the EU-Vietnam Free Trade Agreement (EVFTA) set to be approved by the National Assembly (NA) during their next session, the agreement is expected to create an array of opportunities to improve the quality of "made in Vietnam" goods.
January saw Ho Chi Minh City’s industrial production index suffer a drop of approximately 4 per cent, of which its key industries, such as manufacturing engineering, electronics, chemicals, rubber, and plastics saw a decline of 2.7 per cent.
Most notably, the wood processing industry fell by over 24 per cent while other processing industries were down 21 per cent.
This decline in the southern city’s industrial production index can largely be attributed to the extended Lunar New Year that much of the country has faced.
As a result of the impact of the novel coronavirus epidemic, many businesses are forecast to endure a number of hurdles in the near future in terms of production materials and export markets.
As a means of dealing with the situation in an appropriate manner, the southern metropolis is looking to strengthen trade promotion activities in order to help businesses boost market expansion whilst simultaneously seeking new sources of raw materials.
Indeed, if the EVFTA is adopted by the NA during their upcoming session, the agreement will serve to create a wealth of opportunities for many domestic businesses to bolster their exports.
Leaders of the Ho Chi Minh City People's Committee have therefore requested that departments and agencies move to provide further support and create optimal conditions for enterprises to improve their competitiveness, whilst taking full advantage of the export opportunities that will occur upon gaining access to new markets within the EU.
Nguyen Thanh Phong, Chairman of the Ho Chi Minh City People's Committee, stated that the ratification of the EVFTA during the upcoming NA session represents the perfect time to work on improving the overall quality of made in Vietnam products.
He also asked relevant agencies complete strategies aimed at developing key products in the industrial, agricultural, logistics, and e-commerce sectors throughout the first quarter so the opportunities from the EVFTA can be seized upon.