FTAs in the context of the global economic crisis.

On March 14, 2013, the University of Social Sciences and Humanities, in collaboration with the Rosa Luxemburg Foundation, organized a seminar entitled: “The Development of Free Trade Agreements (FTAs) in the Context of the Global Economic Crisis - Perspectives of the EU and ASEAN”.The workshop was attended by Associate Professor Pham Quang Minh (Vice Rector), representatives from the Rosa Luxemburg Foundation in Vietnam, and many scientists from international organizations, universities, and academies both domestically and abroad. The presentations at the workshop delved into the process of forming AFTA, the advantages and challenges for Vietnam and ASEAN when participating in FTAs. In the context of global economic integration, participation in FTAs ​​has become an essential need for every country. Vietnam joined AFTA in 1996 and since then has negotiated and participated in many regional and bilateral FTAs ​​with different forms and contents. As of 2012, Vietnam had participated in 6 regional FTAs, including: the ASEAN Free Trade Area Agreement (AFTA), ASEAN-China Free Trade Agreement (ACFTA), ASEAN-Korea Free Trade Agreement (AKFTA), ASEAN-India Free Trade Agreement (AIFTA), ASEAN-Australia and New Zealand Free Trade Agreement (AANZFTA), and the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP); 2 bilateral FTAs ​​between Vietnam and Japan, and Vietnam and Chile; and was in the process of negotiating and signing more important FTAs ​​such as the TPP and the Vietnam-EU FTA. In his paper "Free Trade Agreements (FTAs): Characteristics, Trends and Impacts on Vietnam," Assoc. Prof. Dr. Ha Van Hoi (Faculty of Economics, Vietnam National University, Hanoi) clearly stated that FTAs ​​have a very significant impact on Vietnam. Notably, the Free Trade Agreement (FTA) negotiations between Vietnam and the European Union are expected to help reduce 90% of tariffs on Vietnamese exports to this market, along with increasing EU capital flows into Vietnam. Furthermore, participating in FTAs ​​allows Vietnamese businesses to minimize costs, particularly through tariff reductions and investment policies. Thus, implementing commitments within FTAs ​​will boost trade, provide greater security for business investments, gradually reduce trade barriers, and foster strong future development for Vietnam. According to the report "ASEAN Free Trade Agreement (FTA): Concepts and Policies" by Associate Professor Pham Thanh Binh (Institute of World Economics and Politics), Vietnam's purpose in signing FTAs, like other ASEAN countries, is to increase exports, create attractiveness to attract foreign investment, enhance its position, and build its image internationally. FTAs ​​also increase pressure for innovation and improve competitiveness. Furthermore, the presentations argued that participating in many FTAs ​​would create too many intertwined commitments and regulations, making it difficult to formulate national trade policies and comply with and enforce FTA commitments and regulations. However, if Vietnam and ASEAN do not join this trend, they will face discrimination and the risk of a "trade diversion" effect, preventing export sectors with competitive advantages from operating effectively. Therefore, in the context of global integration, Vietnam, as well as other ASEAN countries, need to clearly identify the characteristics and trends of FTAs ​​in the world and the region. This will be key for Vietnam and other countries to participate effectively, contributing to the successful economic development of their respective countries.