Free trade agreements. A game changer.

Vietnam's strategic embrace of free trade agreements (FTAs) has significantly bolstered its position in the global market. With a network of 18 active and planned FTAs, Vietnam has effectively opened its doors to numerous international markets, enhancing its trade prospects and economic growth.

One of the most notable agreements is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect in 2019. This agreement includes countries like Australia, Canada, Japan, and Mexico, among others, and is expected to increase Vietnam's GDP by 1.3 percentage points by 2035. Another significant FTA is the EU-Vietnam Free Trade Agreement (EVFTA), which became effective in 2020. This agreement is projected to boost Vietnam's GDP by 15%1.

Vietnam's participation in the Regional Comprehensive Economic Partnership (RCEP), effective from 2022, further underscores its commitment to integrating into the global economy. This agreement includes ASEAN member states, along with Australia, China, Japan, New Zealand, and South Korea.

Additionally, Vietnam has bilateral agreements with key trading partners. The Vietnam-Japan Economic Partnership Agreement (VJEPA) has been in effect since 2009, and the Vietnam-South Korea Free Trade Agreement (VKFTA) since 2015. These agreements have facilitated increased trade flows and investment between Vietnam and these countries.

The UK-Vietnam Free Trade Agreement (UKVFTA), effective from 2021, is another critical milestone. This agreement ensures preferential tariffs and trade terms between the UK and Vietnam, fostering stronger economic ties.

In conclusion, Vietnam's strategic use of free trade agreements has provided it with a competitive edge in international trading activities. By reducing trade barriers and opening up new markets, these agreements have significantly contributed to Vietnam's economic growth and global trade integration