National Assembly deputies expect that Free Trade Agreements (FTAs) willgive local enterprises both opportunities and challenges, forcing themto reform if they are to survive and grow.

Vietnam recently signed FTAs with the Republic of Korea and the EurasiaEconomic Union (EAEU) while more pacts are expected to sign in theupcoming time.

According to Cao Sy Kiem, a NAdeputy representing Thai Binh province and chairman of the Small- andMedium-Sized Enterprises (SMEs), the EAEU is a dynamic and potentialarea with markets suitable with Vietnamese goods.

The FTA with the EAEU will open up new market, new circumstances andnew chances for Vietnam’s economy to grow further, he said.

Vietnam can find good chances for the export of agro-products.Besides that, Vietnam’s abundant workforce and production capacity canmeet requirements of the market and partners in the region, he said.

However, the deputy is concerned that domesticbusinesses lag behind their peers in the target region and the world interms of management capacity, the quality of workforce, productivity,and technology level. These limitations might push up the price ofgoods, affect product quality and therefore reduce competitiveness.

Kiem said that three problems should be addressed promptly to helpimprove domestic businesses’ performance. Firstly, the country mustreform institutions such as taxation, exchange rate, interests andbusiness freedom to meet the requirement of new markets and newpartners.

Secondly, the application oftechnology should be boosted and thirdly, training a workforce and apool of managers able to use new technologies.

Kiem advised enterprises, especially SMEs, to actively take measures to make them more competitive.

Do Van Ve, member of the NA’s Commission for Science, Technology andEnvironment, said local enterprises have made preparations over the pastyears for the international economic integration.

FTAs always brings both advantages and disadvantages. FTAs offer moremarkets for Vietnam’s exports thanks to tax incentives and allow localenterprises to learn a lot from developed countries from management tomarketing.

However, Ve said, limitations intechnology, productivity, and the quality of workforce will reduce thecompetitiveness of the local products.

Veproposed that the Government should create favourable conditions throughmechanisms and policies to help enterprise grow to become internationalplayers.-VNA