Vietnam FTA Index: Data & Human Resources Key to Success

Data and Human Resources: Decisive Factors for Effective FTA Implementation

Maximizing opportunities from Free Trade Agreements (FTAs) is a top goal for many Vietnamese enterprises; however, success depends on several key factors.

In 2025, the Ministry of Industry and Trade (MOIT) released the FTA Index 2024. This event marked the first time localities, industries, and enterprises had a comprehensive, transparent tool to evaluate their capacity to implement and utilize FTAs. To apply this index strongly in practice, MOIT acted quickly and flexibly, creating an important shift to accelerate Vietnam’s goods exports.

Economist Hoang Trong Thuy shared insights on the status of FTA implementation in some localities and proposed fundamental solutions to enhance enterprise potential.

Enterprises: Proactive and Adaptive Reporter: Seven months after the announcement of the FTA Index 2024, provinces and cities have made many changes to improve implementation capacity. How do you assess the solutions being deployed by localities?

Mr. Hoang Trong Thuy: First, I would like to reiterate the 4 pillars of the FTA Index: Law propagation and dissemination; Law implementation regulations; Support for capacity building; and finally, Commitments to sustainable development. Currently, Departments of Industry and Trade (DOIT) and provinces have linked with each other, with departments, boards, sectors, and even linked from supply source to export. That linkage creates synergy—which is also the driving force for development.

In 7 months, progress in some localities has been somewhat slower, so more time is needed for operation, focusing on two key points.

• Uniformity: There is a gap between mountainous/agricultural provinces and dynamic economic zones like the South, Hanoi, or Binh Duong.
• Access: SMEs in remote areas still have limited access.

However, in general, some export units have started conceiving ideas to build professional departments, specialized personnel, and plan pathways along the product line from supply to export. I believe that is the first victory in awareness; the second victory is gradually changing behavior towards being proactive and adaptive.

5 Core Factors for Success Reporter: In your opinion, what factors help enterprises in the industry achieve the highest utilization rate of preferences, thereby improving FTA implementation capacity and helping to upgrade local rankings in the FTA Index?

Mr. Hoang Trong Thuy: I think there are 5 core factors to improve enterprise capacity and perform well on this FTA Index:

1. Rules of Origin (ROO): To utilize agreements well, the enterprise’s supply chain must be transparent. This is the core and most important factor.
2. Governance and Market Standardization: Enterprises must meet standards and conditions of “demanding” markets, requiring self-review and self-upgrade.
3. Information Access and Decoding: SMEs often lack specialized legal departments. We need specialized agencies, especially in large corporations, with experienced R&D and legal teams to collect and control information from the start to prevent rejections or violations.
4. Technology Investment and Digital Transformation: This must be automated to access markets like Europe.
5. Linkage and Cooperation: The network of enterprises in exports. MOIT has made great efforts to build an ecosystem for enterprises. Therefore, enterprises must take a proactive, leading role.

The Gap: SMEs vs. Large Enterprises Reporter: Do you have any comments on the ability to access information, C/O documents, and apply FTA rules between large enterprises and SMEs?

Mr. Hoang Trong Thuy: regarding the difference, I would like to compare on three aspects:

• Information: Large enterprises have international trade and legal departments. SMEs access information mainly via word of mouth or general reading. The gap in information accuracy for decision-making is quite large.
• Documentation: Large enterprises follow processes and standards with expert analysis. SMEs lack skilled personnel, so problem identification is sometimes driven by emotion rather than data. The economy needs indicators and standards as the best conditions for decision-making.
• Compliance: Large enterprises have clear strategies to improve efficiency based on indicators. SMEs often lack strategies to “fill the gaps” in organization or supply standards. Consequently, large corporations build trust through branding, while SMEs struggle to highlight their brand, facing export difficulties.

Promoting Connection via Ecosystems Reporter: Where should the process of improving FTA understanding and implementation capacity begin? How should associations coordinate with MOIT in building industry data platforms for the FTA Index report?

Mr. Hoang Trong Thuy: I have selected three breakthrough stages that must be done early:

First, reducing “information poverty” to standardize codes of conduct in FTAs. For exporters, this relates to production organization and raw material areas. Full information opens conditions for developing thinking, applying science/technology, and technical standards.

Second, building capacity for records and data, especially traceability. This is the “submerged part of the iceberg” of FTAs. “No data means no incentives.”

Third, training FTA personnel in provinces. They must be professional, knowledgeable, and flexible.

Reporter: In the coming time, what support mechanism is needed for the FTA Index to truly become a compass for Vietnam’s integration strategy?

Mr. Hoang Trong Thuy:

• Local Focal Points: Each province should establish a team or focal point to support FTAs, ensuring businesses receive consultation and guidance.
• Ecosystem Connection: Enterprises should connect according to the ecosystem MOIT has built. Initially, there may be questions, but we should proceed; the path will form, opening more export opportunities.
• Evaluation Criteria: The FTA Index should be included in the evaluation criteria of Departments of Industry and Trade, not just enterprises.
• Data Interconnection: Connecting industry data with MOIT and the nation for shared use, optimizing product selection.

Finally, the Government needs to empower MOIT more strongly. This empowerment provides the action framework for the 2026–2030 period to better implement the Index. When empowered, cooperation, linkage, listening, and sharing on the same path will be more successful.

Reporter: Thank you, Sir!

Note: The FTA Index 2024 is not merely a ranking but reflects the internal strength of the economy, helping each locality and enterprise clearly identify its position in the integration process. The movements after the FTA Index announcement confirm Vietnam is on the right track, but creating a breakthrough requires synchronous companionship from the government, associations, and the business community.