Viet Nam is working fast to repair business gaps in anticipation of a myriad of bilateral and multilateral free trade agreements (FTA) expected to be signed in 2015.

An automobile assembly line

Commenting on FTA impacts, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said domestic firms will be able to enter major markets worldwide with minimal tariffs and barriers, such as the US, Europe, Japan, the Republic of Korea, the ASEAN, Belarus and Kazakhstan.

However, he urged exporters to meet international requirements of standards and quality, safety and hygiene, and source of origin, as stringent technical barriers are to be expected in many of the agreements.

According to the VCCI, up to 96% of Vietnamese firms are considered small- or medium-sized and are weak in capital, technology and skills, limiting their ability to compete with foreign rivals in the global supply chain.

Ho Nghia Dung, Chairman of the Vietnam Steel Association, stressed the need to crack down on counterfeit products taking tolls on domestic business activity.

The Viet Nam Association of Mechanical Industry submitted a draft of recommendations to the government, including more 0-3% loans for support industry within 15-20 years, or subsidy on loan interest for the first five years.

The Ministry of Industry and Trade and other agencies are also asked to modify policies for the auto industry.