Bewildered by FTA (*): Blind information

There are many free trade agreements (FTAs) that Vietnam has signed and will sign, with quite complex content. The business community is in dire need of specific information, but up to now, the whole country has only had a project to strengthen information and propaganda for integration, but there is no detailed content of what to disseminate, how, and for what duration.

Very disturbing!

Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food Association, said that up to 80% of the association's small and medium-sized enterprises have almost no access to information about integration. "Recently, we proposed to organize propaganda sessions and seminars to disseminate the agreements to businesses, but the industry association's funding was not enough, we had to submit to the Department of Industry and Trade for funding and are currently waiting for the department's approval. I suggest that if we organize to propagate information about integration, we should have a standard project and standard reporters to convey to businesses" - Ms. Chi said.

Leaders of some localities such as Ba Ria - Vung Tau and Binh Duong stated the fact: While foreign invested enterprises (FDI) have proactively prepared for integration since 2000, Vietnamese enterprises, especially small and medium enterprises, are still "calm", do not know what to prepare and... prepare nothing. Very disturbing. Without information, businesses cannot be "bright" in strategic planning and future plans to invest and expand production.

An economic expert, also a member of the Board of Directors of a textile enterprise, told the story of when he talked with many domestic enterprises, asking about readiness for deep integration, everyone said "must change" but did not know what to change. "Many businesses build their brands for 20 years but cannot grow up, they are still small and medium scale because they do not have a clear and methodical strategy" - this person admitted.

Explaining this paradox, the economic expert said that it is because businesses lack information or a database of information so they can analyze and plan strategies. "Enterprises say they are ready to integrate, but when asked what they have to offer to the market, to compete with foreign enterprises, everyone is silent. Integration is creating conditions for Chinese and Thai goods... to flood into every corner of the domestic market. Hearing about the Trans-Pacific Strategic Economic Partnership Agreement (TPP), everyone knows, but what to do to take advantage of it is a difficult question" - this economic expert cited.

Lack of breath in propaganda

Ho Chi Minh City as well as provinces and cities have organized many seminars and conferences to disseminate FTAs ​​to businesses, but most of the information is still general and does not meet the needs of the business community according to each specific industry and field. The director of a business in Ho Chi Minh City said he was hesitant to attend conferences and seminars on integration because the more he listened, the more confused he became; Speakers often talk about general macro issues. "When I even asked an expert if he knew the specific content of the agreement that the two sides negotiated and signed, the answer was that he only knew roughly and had information through foreign press combined with finding information himself!" – this director said.

Many other businesses complain that everywhere they go, they hear people talking about integration through a series of FTAs, but few people understand specifically, so they don't know what to do. As a result, businesses face difficulties, even at risk of bankruptcy. The livestock industry is an example. Currently, farms and livestock enterprises are exhausted in competing with cheap foreign meat imported massively.

According to Prof. Dr. Doan Thi Hong Van, Ho Chi Minh City University of Economics, many businesses have the mentality that it's a done deal, no matter how much they say, they'll do whatever they can. Therefore, authorities should inform businesses in advance what Vietnam will negotiate, how it will impact businesses, and listen to businesses' comments.

Mr. Pham Binh An, Director of the WTO Center in Ho Chi Minh City, commented that businesses do not have time to read and understand the agreement. The heat of integration has reached the back of the neck, but how to get information is a big problem. "The demand is quite large, the content is quite complex, we are quite confused and feel out of breath in selecting content to convey to businesses. Right now, ministries - branches and specialized agencies must have specific plans to convey the detailed content of each agreement to each industry more clearly" - Mr. Pham Binh An proposed.

Next time: "Forcing" businesses to change