Unlock credit capital sources to support businesses to effectively take advantage of FTAs

Ms. Nguyen Thi Lan Phuong - Deputy Head of the WTO and FTA Department, Multilateral Trade Policy Department, Ministry of Industry and Trade said that currently Vietnamese businesses are facing some difficulties in exploiting the FTA market. One of them is limited financial resources..., solutions to support businesses are urgently needed.

Businesses have not fully exploited the opportunities from FTAs

Ms. Nguyen Thi Lan Phuong, Deputy Head of the WTO and FTA Department, Multilateral Trade Policy Department (Ministry of Industry and Trade) said that the process of implementing FTAs has brought some positive results.

However, according to Ms. Nguyen Thi Lan Phuong, the process of taking advantage of the recent FTA shows that there are still many problems that need to be resolved. The proportion of Vietnam's exports in FTA markets is still very modest. Along with that, the rate of FTA utilization in Vietnam's FTA partner markets has also not met expectations. For example, with the EU, even though the market is considered to have a relatively high utilization rate, it only reaches about 26%.

Besides, businesses that are taking good advantage of FTAs are mostly FDI enterprises, while Vietnamese businesses, especially small and medium-sized enterprises, are relatively taking advantage of opportunities from these FTAs. limit.

In addition, a representative of the Ministry of Industry and Trade said that most export products are mainly processed, businesses have not built products with the "Made in Vietnam" brand on the markets of FTA countries.

 Processing pangasius fillets for export at the factory of Multinational Investment and Development Joint Stock Company (Dong Thap province). Photo: Pham Hau/TTXVN

Regarding the limited implementation of FTA by businesses, Ms. Nguyen Thi Lan Phuong said that one of the very important reasons and plays a very key role is the access to capital and financial resources of businesses. Karma.

Citing VCCI's survey results, a representative of the Ministry of Industry and Trade said that in 2022, in a survey of businesses, up to 55.6% assessed that they had difficulty accessing credit, while this number was In 2019 it was only 34.8%, in 2020 it was 40.7% and in 2021 it was 46.9%. The international organization IFC also assessed that 70% of Vietnamese small and medium enterprises find it difficult or impossible to access finance.

According to Ms. Nguyen Thi Phuong Lan, businesses need easier access to finance to be able to invest more methodically, convert production technology, and invest to meet the sustainable development standards of the FTA market. to take better advantage of these FTAs.

Unlock financial resources for businesses

Mr. Nguyen Hoai Nam, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that by 2023, seafood exports will decline by 30-40%. To overcome difficulties, seafood businesses proposed the first issue to the Government, Ministries and branches: credit.

“Credit and interest rates have contributed significantly to removing difficult bottlenecks in recent times. The VND 15,000 billion credit package has contributed to reducing a lot of pressure, at least creating a space in the past two months. From August 2023 until now, our seafood exports have increased. growth by month", Mr. Nguyen Hoai Nam informed.

Referring to credit - financial solutions for businesses, Mr. Nguyen Hoai Nam hopes to continue to receive the companionship of the banking industry to be able to lend to businesses with interest rates in Vietnam Dong of less than 7 % and the interest rate for USD is below 4%. This will be a significant support, creating momentum for businesses to recover and develop in 2024.

Mr. Nguyen Quoc Hung, General Secretary, Vice Chairman of the Vietnam Banking Association (VNBA) said that for manufacturing enterprises exporting to FTA areas - this is one of the subjects banks lend to. incentives with lower interest rates, currently the lowest is 4%, lower than USD interest rates. Mr. Nguyen Quoc Hung said that although banks have abundant liquidity, they still have to lend according to the principle of ensuring compliance with their regulations and cannot lower lending standards.

For export businesses, Mr. Nguyen Quoc Hung said that to take advantage of capital, first of all, businesses must aim at green production and consumption following the general trend.

From a management perspective, Ms. Nguyen Thi Lan Phuong said that recently, the Ministry of Industry and Trade reported to the Prime Minister on the results of implementing new generation FTAs in 2022 and one of the recommendations was to assign The State Bank presides and coordinates with relevant ministries and branches to develop measures to support businesses in accessing credit capital sources to better take advantage of FTAs. Special attention is paid to businesses that want to improve their capacity for sustainable development, green transformation and develop more socially responsible products.

According to a representative of the Ministry of Industry and Trade, at the same time with the support of the Government, ministries, branches and businesses also need to restructure and focus on industries identified as strengths to have plans to borrow and use. Effective sources of credit and finance...

In addition, businesses need to pay attention to adjusting financial management, cash flow management, management of production and labor issues... to be able to meet the conditions for loans from banks and credit institutions.

According to baotintuc.vn