Giới thiệu

What is the FTA Index?

The FTA Index is an index assessing the results of implementing Free Trade Agreements (FTAs) in provinces.

The FTA Index is implemented to monitor changes in the quality of FTA implementation over time, assess results against a consistent set of criteria, identify bottlenecks in each locality, and provide an empirical basis for management, administration and policy formulation. Through the FTA Index, provinces have an additional tool to compare results, identify areas requiring improvement, and learn from effective implementation models.

Objectives

The survey supporting the development of the FTA Index 2025 focuses on identifying the current status of FTA implementation by provinces across four areas:

1. Access to information on FTAs;
2. Compliance with legal regulations under FTA commitments;
3. Policies and programmes supporting businesses;
4. Implementation of sustainable development commitments.

The survey results provide an information basis for the Government and the National Assembly to direct and supervise FTA implementation at the local level; strengthen the effectiveness and efficiency of state management and the supporting role of central agencies; support assessment of local FTA implementation against action programmes; and encourage greater attention by agencies, provinces, people and businesses to FTAs and international economic integration.

Methodology

The FTA Index is developed on the basis of survey data from economically independent businesses that have registered production and business headquarters in Viet Nam and conduct exports and/or imports of goods, combined with methods of aggregation, analysis and index calculation.
The sample is selected using stratified sampling combined with random sampling, based on lists of businesses with tax activities in each province. The three stratification criteria are legal form, main business sector, and import-export turnover.
For index construction, data are aggregated and analysed for the full sample, by business type, business size and locality. Indicators are standardized on a scale from 1 to 10; four component indices are then formed and ultimately aggregated into the FTA Index.

Development process

Step 1 – Data reliability check:
Survey data are reviewed, outliers are processed and consistency is checked. Indicators that do not meet reliability requirements are removed before calculation.

Step 2 – Data standardization:
Businesses’ responses are converted into scores for each indicator of each province or centrally governed municipality. The indicators are then standardized on a scale from 1 to 10; the lowest and highest values among the 34 provinces and municipalities are converted into 1 and 10 points, respectively.

Step 3 – Calculation of component indices:
The standardized indicators are calculated using an unweighted arithmetic mean to form four component indices, each on a 10-point scale:
Access to information on FTAs;
Implementation of legal regulations on FTAs;
Programmes supporting FTA implementation;
Implementation of sustainable development programmes under FTA commitments.

Step 4 – Calculation of the composite index:
The component indices are aggregated into the FTA Index on a 40-point scale. Indicator weights are determined based on their relationship with the locality’s total import-export turnover, while controlling for differences in foreign investment, labour, number of businesses, provincial competitiveness, and conditions relating to seaports/border gates and international airports.

Frequently asked questions