The Ministry of Industry and Trade reported the results of the FTA Index 2024 to the Prime Minister. The results cover each component of the Index: FTA information and dissemination; development and implementation of legislation; FTA utilisation and support for stronger competitiveness; and sustainable development. These are areas of particular interest to businesses seeking to take advantage of FTA opportunities. The report uses an integrated analytical approach and reference data to ensure objectivity and accuracy in reflecting local FTA implementation in 2024. The results are presented below.
Overall results
1.1. FTA information and dissemination component index
The FTA information and dissemination component index assesses differences among provinces and cities in businesses’ access to FTA information and dissemination activities.
The score of the Component Index on information and dissemination activities of ranked provinces and cities is calculated as the average of the indicators after being standardised on a 10-point scale.
Ninh Binh recorded the highest score, at 8.3 points, followed in the top 10 by Quang Binh, Thanh Hoa, Ca Mau, Ha Giang, Quang Ninh, Thai Nguyen, Dien Bien, Long An and Bac Lieu. The provinces outside the top 10 with a score of 6 or higher are Khanh Hoa, Tra Vinh, Tien Giang, Hai Phong, Binh Duong, Ho Chi Minh City, Ben Tre, Ba Ria-Vung Tau, Kien Giang, Phu Yen, Dong Nai, Binh Dinh, Lam Dong, Quang Nam, Binh Thuan, Dak Lak, Can Tho and An Giang.
The lowest-scoring locality was Dong Thap with 2.75 points.
1.2. Component index on the implementation of FTA-related legal provisions
The component index on implementation of legal regulations to implement FTAs assesses the level of difference between provinces and cities in the level of access of businesses to legal documents issued to implement commitments under FTAs. This component index includes 6 indicators.
The score of the component index on the implementation of legal regulations to implement FTAs of provinces and cities is calculated as the average score of the indicators after being standardised on a 10-point scale.
Khanh Hoa recorded the highest score, at 8.69 points, followed in the top 10 by Thanh Hoa, Quang Binh, Ca Mau, Ninh Binh, Thai Nguyen, Tra Vinh, Binh Duong, Ha Giang and Kien Giang. The provinces outside the top 10 but with a score of 6 or more are Dien Bien, Phu Yen, Quang Ninh, Tien Giang, Ba Ria-Vung Tau, Long An, Ho Chi Minh City, Binh Dinh, Can Tho, Ha Noi, Bac Lieu, Lam Dong, Quang Nam, Ben Tre and Hai Phong,.
The lowest-scoring locality was Quang Tri with 2.38 points.
1.3. Component index on programmes and policies supporting stronger business competitiveness
The Component Index on Programmes and Policies to Support and Enhance Enterprise Competitiveness assesses the level of difference between provinces and cities in the level of access of businesses to support and enhance capacity programmes to implement and take advantage of FTAs.
The Component Index on Programmes and Policies to Support and Enhance Enterprise Competitiveness of provinces and cities is calculated as the average score of the indicators after being standardised on a 10-point scale.
Thanh Hoa recorded the highest score, at 7.33 points, followed in the top 10 by Ca Mau, Kien Giang, Bac Lieu, Binh Duong, Ba Ria, Quang Ninh, Long An, Ha Giang and Ninh Binh. The provinces outside the top 10 but with a score of 6 or higher are Tra Vinh, Quang Binh, Binh Dinh, Binh Thuan and Tien Giang.
The lowest-scoring locality was Ha Tinh with 3.09 points.
1.4. Sustainable development component index
The Sustainable Development Component Index assesses the level of difference between provinces and cities in terms of readiness and access of businesses to support measures in implementing commitments on sustainable development.
The Sustainable Development Component Index scores of provinces and cities are calculated as the average score of the indicators after being standardised on a 10-point scale.
Bac Lieu recorded the highest score, at 8.35 points, followed in the top 10 by the provinces of Phu Yen, Binh Duong, Dak Lak, Khanh Hoa, Thanh Hoa, Dien Bien, Tra Vinh, Ca Mau and Lam Dong. Provinces outside the top 10 but with scores of 6 or higher are Quang Ninh, Long An, Ba Ria, Kien Giang, Binh Dinh, Thai Nguyen, Binh Thuan, Ha Giang, Ben Tre, Dong Nai, Ho Chi Minh City, Soc Trang, Dong Thap, Tien Giang, Quang Binh, Ninh Binh, Binh Phuoc, Kon Tum and Nghe An.
The lowest-scoring locality was Lao Cai with 1.31 points.
1.5. FTA Index 2024 ranking results
FTA Index 2024 is the aggregate score of 4 component indexes on a 10-point scale and synthesized into a 40-point scale.
Based on the aggregate results, the research report is divided into 6 quality groups including: Very Good (From 36.55 points or more), Good (From 31.47 to less than 36.55 points), Fair (From 26.40 points to less than 31.47 points), Average (From 21.77 points to less than 26.40 points), Relatively Low (from 16.24 points to less than 21.32 points) and Low (less than 16.24 points).
According to the aggregate results, no province is in the Very Good group. There are 11 provinces in the Good group, 16 provinces in the Fair group, 16 provinces in the Average group, 10 provinces in the Relatively Low group and 1 province in the Low group.
The results of the ranking of provinces and cities according to the FTA Index 2024, specifically as follows:
The province with the highest score is Ca Mau with 34.9 points.
The provinces in the Good group other than Ca Mau are Thanh Hoa, Binh Duong, Khanh Hoa, Tra Vinh, Long An, Ha Giang, Bac Lieu, Ninh Binh, Dien Bien and Ba Ria-Vung Tau.
The provinces in the Fair group are Kien Giang, Quang Ninh, Ho Chi Minh City, Quang Binh, Dong Nai, Tien Giang, Thai Nguyen, Phu Yen, Binh Dinh, Binh Thuan, Lam Dong, Ben Tre, Dak Lak, Quang Nam, Hai Phong and Can Tho.
Localities in the Average group are Binh Phuoc, Soc Trang, Ha Noi, Thai Binh, Tay Ninh, Nghe An, Kon Tum, Hoa Binh, Dong Thap, Lang Son, Bac Giang, Gia Lai, An Giang, Phu Tho, Hai Duong and Vinh Phuc.
Provinces in the Relatively Low group are Nam Dinh, Hung Yen, Ha Nam, Yen Bai, Da Nang, Bac Ninh, Thua Thien Hue, Ha Tinh, Ninh Thuan and Lao Cai.
The locality in the Low group was Quang Tri.
Preliminary assessment
2.1. FTA information and dissemination
The level of awareness, understanding and grasp of commitments under FTAs, especially new generation FTAs, by Vietnamese businesses continues to improve.
The forms of information and dissemination of FTAs are quite diverse, including direct organization through conferences, seminars, discussions, providing publications, documents, press media, and online forms such as electronic information portals.
The quality of information and dissemination information, including trade promotion programmes, market forecasts, etc., is evaluated relatively positively by businesses, basically meeting the needs of businesses.
2.2. Guidance on legal documents implementing FTAs
The number of businesses that know about legal documents implementing FTA commitments is relatively high, on average 70% of the surveyed businesses.
Most businesses can access legal documents implementing FTA commitments, but the rate of accessing documents after issuance is higher than accessing documents before issuance.
The quality of guidance on legal documents implementing basic FTA commitments is assessed positively, showing the efforts of local regulatory agencies.
2.3. FTA utilisation and the effectiveness of policies supporting stronger competitiveness
Businesses are able to take advantage of FTAs although the level of utilisation varies according to the agreements, especially the EVFTA agreement is effectively utilised by many businesses, which is a very positive signal.
Some policies to support competitiveness enhancement implemented by local regulatory agencies bring positive effects to businesses, such as policies to connect FDI businesses, policies to deal with trade defence measures, etc.
2.4. Sustainable development
The number of businesses aware of Viet Nam's commitments on sustainable development is relatively high, accounting for more than 70% of the surveyed businesses. This shows that the implementation of communication activities on sustainable development issues in recent times has had positive results.
The effectiveness of policies to support businesses in adapting to commitments and basic sustainable development contents is positively evaluated by businesses.
Source: Multilateral Trade Policy Department, Ministry of Industry and Trade.