SMEs urged to seize opportunities by FTAs

Delegates said the upcoming FTAs will put pressure on the trade of goods due toa  sharp fall in tariffs, in which 90% of taxation will be reduced by zero percent by 2015.

Many local export businesses have not taken full advantages of the tariff reduction of FTAs due to a lack of information on the ASEAN market, especially information on preferential tariffs on the added value of goods and services and technical barriers.

Cao Van Dung, Dung Giang Construction and Trading Company Director said that SMEs will face huge challenges, including competitive prices and large distribution networks of major foreign businesses, when penetrating new markets in the international integration process.

Attendees agreed that in order to breakthrough the dynamic ASEAN market effectively, local businesses should renovate and apply technological and scientific advancements to improve their product quality.

Companies need to prioritise low-income markets and develop sustainable trademarks to secure big contracts from foreign partners.

Vietnam Chamber of Commerce and Industry (VCCI) General Secretary Pham Thi Thu Hang pledge her organization’s best effort to help SMEs make the most of opportunities by FTAs, especially the participation in the ASEAN community.

(VCCI) Vice President Doan Duy Khuong said taking full advantage of the opportunities from the process will help ASEAN members to reform mechanism, policy and the business environment as well as attract more foreign investment and increase manufacturing capacity, he noted.

Andrew Holt, First Secretary - UK Foreign and Commonwealth Office emphasized the key role of SMEs in Vietnam’s economic reform, especially when it is facing economic difficulties.

Local businesses have yet to fully make use of tax incentives when doing business with partners within and outside the regional grouping.

The seminar gave Vietnamese SMEs a good chance to devise solutions to cope with challenges cause by the agreements, Holt said.