Firms urged to take advantage of trade pacts

Import-export and logistics firms should take advantage of free trade agreements and Incoterms, a set of international trade regulations, experts have said.

Do Xuan Quang, chairman of the Vietnam Logistics Business Association (VLA) and also chairman of the ASEAN Federation of Forwarders Association, told a workshop in HCM City on September 27 that this would help double foreign trade.

Incoterms are a set of standard international regulations last updated in 2010 and used for commercial transactions and procurement and to communicate the costs and risks associated with goods delivery.

Companies who conform to Intercoms provisions would be able to control cost and time while providing transport and logistics services, he said, adding that it would also help Vietnam achieve this year's export target of 126.1 billion USD, a 10 percent jump over 2012.

Vietnam has signed eight FTAs, both bilateral and multilateral, Quang said, citing a Ministry of Industry and Trade report.

Six other FTAs are under negotiations, including the Trans-Pacific Partnership Agreement that is set to be signed by year end and the Regional Comprehensive Economic Partnership to be signed in 2015.

If Vietnam fully implements all agreements signed from now through 2018, its GDP will rise by an additional 3 percentage points per year.

Le Duy Hiep, deputy chairman of VLA, said most of import-export firms do exactly the opposite despite warnings about financial losses and job losses in sectors like maritime transport and insurance.

The Government should work out policies to enable firms to buy under FOB mode and sell under CIF mode for better logistics management and reducing risks, he added.

Source: VNA

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