FTAs speed up Dong Nai’s production and export growth

For many years, Dong Nai has consistently ranked among the country’s top localities in terms of export performance, thanks to the effective market exploitation by enterprises operating in the province. This feature is especially true for markets covered under Vietnam’s free trade agreements (FTAs).

Production of export garments at Dong Tien Joint Stock Company (Amata Industrial Park, Long Binh Ward, Dong Nai Province). Photo: Huong Giang

According to the provincial Department of Industry and Trade, Dong Nai’s export value has grown between 8.5 and 18 percent annually over the past five years, exceeding both provincial targets and the national average. This performance reflects the efforts of local governments and enterprises to flexibly overcome challenges, promptly adapt to global consumer demand, and supply products that meet market needs.

FTAs unlock international markets

To date, Vietnam has signed 17 free trade agreements (FTAs) with nearly 60 economies worldwide, covering close to 90 percent of global GDP. Many of these agreements eliminated 65–85 percent of import and export tariff lines immediately upon entry into force. This endeavor offers a significant advantage for Vietnamese enterprises in expanding trade relations with member countries. As tariffs are either removed immediately or phased out over a period of 3 to 7 years, Vietnamese exports enjoy a significant boost in competitiveness in partner markets.

For instance, under the EU–Vietnam Free Trade Agreement (EVFTA), signed between Vietnam and 27 member states of the European Union and effective from August 1, 2020, the EU eliminated 85.6 percent of tariff lines at the time of implementation, while Vietnam removed 65 percent. Within a few years, tariff elimination on both sides is expected to reach up to 99 percent. Similarly, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which comprises 12 member economies with a combined GDP accounting for 15 percent of global output, officially came into effect for Vietnam on January 14, 2019. Under the CPTPP, member countries committed to eliminating import tariffs on goods originating from Vietnam ranging from 97% to 100%, depending on each country's specific commitments.

According to Assoc. Prof. Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, Vietnam ranks among the world’s leading countries in terms of economic openness, with 17 effective FTAs that have opened up major markets for Vietnamese exports.

The Ministry of Industry and Trade reports that FTAs have driven strong growth in Vietnam’s trade over recent years. In 2024, two-way trade between Vietnam and CPTPP partners surpassed 102 billion USD and is expected to reach a new record this year.

“Trends in supply-chain diversification and shifts in investment by multinational corporations are creating opportunities for Vietnam to boost trade, attract foreign direct investment, expand production, and increase export turnover.”

Director General of the Department of Foreign Market Development, TA HOANG LINH  (Ministry of Industry and Trade)

Dong Nai maximizes FTA opportunities

Dong Nai has effectively leveraged opportunities from FTAs to expand export markets and boost its industrial production index. For example, in 2021, despite being severely impacted by the COVID-19 pandemic, including three months under social distancing measures, the province’s export turnover still reached nearly 21.8 billion USD, up almost 16 percent, nearly double the annual target. By 2024, Dong Nai had recorded an export value of approximately 24 billion USD, representing a year-on-year growth of almost 11 percent. In 2025, exports are projected to approach 35 billion USD, with Dong Nai expected to remain among the country’s top localities in terms of trade surplus.

Nguyen Van Hoang, General Director of Dong Tien Joint Stock Company (Amata Industrial Park, Long Binh Ward, Dong Nai Province), said: “Over 75 percent of our garment products are exported to the European market, which demands high standards of product quality. To access this market, products must meet ESG (Environmental, Social, Governance) requirements. Therefore, we have invested in green and smart manufacturing facilities to satisfy customer expectations, while also expanding exports to Japan.” The markets targeted by the company are all partners of FTAs that Vietnam has signed and implemented.

In recent years, Dong Nai has consistently ranked first in the country in exports, thanks to enterprises’ proactive utilization of FTA potential and advantages to expand market access. Companies have also sourced more domestic materials to satisfy rules of origin and benefit from tariff preferences. As a result, Dong Nai’s trade surplus has grown steadily for nearly a decade, contributing to the country’s overall trade balance.

According to Ta Hoang Linh, Director General of the Department of Foreign Market Development under the Ministry of Industry and Trade, new-generation FTAs such as CPTPP, EVFTA, and RCEP (Regional Comprehensive Economic Partnership) have opened up vast and diversified market spaces, creating significant competitive advantages for participating economies, including Vietnam, in expanding exports.

The current global landscape presents both challenges and opportunities for Vietnam. If the country can effectively leverage the advantages offered by FTAs, proactively adapt to tariff and non-tariff barriers, and simultaneously promote green transformation, accelerate digitalization, and foster innovation, it will be well-positioned to enhance its role as a key link in global supply chains.

In 2025 and beyond, projections for 2026 anticipate that geopolitical conflicts in various parts of the world, strategic competition among major powers, and rising protectionist trends will heighten uncertainty and unpredictability in global trade. Many countries are likely to intensify the use of tariff and non-tariff barriers to protect domestic industries, creating new obstacles for international commerce.

In this context, enterprises in Dong Nai have adopted proactive and flexible approaches to strengthen market connections and expand into markets covered by FTAs signed by Vietnam, thereby enhancing their competitiveness against similar goods from other countries.

                                 By Khanh Minh - Translated by Thuy Trang, Minho