Although Vietnam has signed 17 free trade agreements (FTAs) with global partners, the proportion of domestic firms able to utilize tariff preferences from these agreements has not met expectations, especially for next-generation FTAs. One of the groups most at risk of being left behind in the process of international economic integration is domestic small and medium-sized enterprises (SMEs). Due to their inherent characteristics, SMEs face clear disadvantages compared to large firms in capturing opportunities from FTAs. Can domestic SMEs take advantage of tariff preferences from next-generation FTAs? At present, there are no official statistics on the proportion of SMEs that successfully utilize tariff preferences from FTAs. However, this rate can be indirectly estimated through the overall national utilization rate of FTA tariff preferences and the share of SMEs directly participating in export activity. To determine the extent to which tariff preferences under FTAs are being utilized, one common indicator is the proportion of export value accompanied by certificates of origin (C/O), which are required to qualify for preferential tariffs under specific agreements. Official statistics show that some next-generation FTAs, such as RCEP and CPTPP, have relatively low utilization rates. After six years in effect, only 8.8% of Vietnam’s exports to […]
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