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1 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam When Vietnam to participate in the free trade agreements Vietnam – EU (VEFTA) and proposes appropriate business strategy for the business TABLE OF CONTENTS 1 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam When Vietnam to participate in the free trade agreements Vietnam – EU (VFFTA) and proposes appropriate business strategy for the business 1.1 General Presentation of VEFTA 1.1.1 The parties negotiated Vietnam and the EU: In particular, the EU to negotiate with nature as a unified block trade, the commitments that the EU offer will bind all the Member States of the EU-is composed of twenty-seven countries; In contrast the Vietnam's commitments will be valid for goods and services from all EU member countries The EU is Vietnam's major trading partners (particularly in the area of exports) So getting the free trade agreement with this market will impact directly and in full scale for several sectors of Vietnam 1.1.2 The commitment In principle, the degree of "liberalization" of the contents of commitments is to separate free trade agreements (FTAs) with open trade agreements normal So free trade agreements Vietnam - EU trade deal would be that the parties (EU and Vietnam) will be presumed to make a strong commitment, wide open than the orange WTO, for example: + Trade in goods: tariff reduction commitment (to 0% or near 0%) for many (or most) of the commodity groups + Trade in Services: Committed to open services markets in more fields and / or to schedule an earlier WTO commitments + Investment, Intellectual Property: the commitment to create more favorable conditions for investment activities, strengthen the protection of intellectual property rights The commitments in the framework of the free trade agreements are seen as "exceptions" to the principle of non-discrimination in the WTO and is only applicable for partners in the deal that did not apply to countries other For the Vietnam side, the negotiation results are considered beneficial if the EU accepts open market (tax cuts) for the areas in which Vietnam may increase export and reduce the barriers to this market access and Vietnam are not forced to open markets where domestic competitiveness is weak 1.1.3 Status of negotiations On 2/7, the fourth round of negotiations on the free trade agreement between Vietnam and the European Union (VEFTA) was officially opened in Brussels, this negotiating session lasted from 2-5/7, as the first two sides go into substantive negotiations and expressed hope negotiations the two sides in the coming days implement the roadmap formulated VEFTA negotiation had been through sessions and the goal was led to the Vietnam and the EU agreed to try to conclude negotiations by the end of 2014 To reach that goal, the two sides have set a roadmap to work extremely hard The three are mutually determined by the roadmap is intended to unify the basic content of the frame agreement to clarify the requirements, the desire of the other party Three rounds of negotiations to start was made with the very positive attitude of the two negotiating delegations The two sides exchanged for another letter of agreement of each party for each chapter Essentially, through sessions, both the Vietnam-EU has clarified the text that you want in the other party, at the same time was switched on some important leads as touted on the open commodity market This step is especially important for building the Foundation for the agreement that the two sides are negotiating Therefore, the fourth negotiating session is very important in the transition from negotiations to clarify the benefit each other's demands to negotiate essentially to open each other's market like Therefore, the focus of the talks Wednesday would be the most important issues of the two sides, which is particularly concerned that problems such as goods, services, investment, Government purchases as well as other matters related to the frame agreement to mutually make the process of opening up markets for each other, such as the protection of intellectual property rights, the General regulations on the trade of goods and The two sides expect this Wednesday negotiations, Vietnam and the EU will be "the bricks to form the agreement." However, the negotiation process is the same as EVFTA the negotiation of other agreements of the EU recently is the very high standard agreement, so this is a very complex process The free trade agreement EU-Vietnam once formed will create a more favorable environment for Vietnam, the taxes to zero for most goods such as agricultural products, food products, footwear, apparel and This expected commercial activity will be promoted, as well as bring more safety in the process of enterprise's investment At the same time, the free trade agreement EU-Vietnam is also expected to European business to invest more aggressively into Vietnam in the coming time Vietnam and the EU have signed off the comprehensive partnership agreement (PCA) on 8/10/2010 tonight-a text which the EU usually signed before the talks and the signing of the FTA with the partners So the future of the free trade agreement, Vietnam-EU is relatively certain However no formal round of negotiations would be conducted Due to the fundamental issue of the FTA has not been decided should be the opportunity to comment and suggestions on the content of the FTA and the possibility the proposals being considered are also larger 1.1.4 Scope of negotiations Because there have been no official decision on the matter will be discussed and are committed in the framework of this FTA should not yet able to define exactly the scope of negotiations However, the EU has signed several FTAS with many other partners, including partners in the developing countries is similar to Vietnam could speculate that for Vietnam, they can also apply the same range The scope of this FTA is basically also matches the statement guide/disambiguation about the scope of the EU's FTA (especially the EU Global 2006) Specifically, EU's FTA usually follow the following directions: a) The specific commitments to achieve a wider opening commitments under the WTO ("WTO +" FTAs), namely: - Tariffs and quotas are eliminated for ninety to ninety-five tariff lines; - To intensify liberalisation in services (including most of the service sector) and investment; - Go beyond the WTO in matters relating to government procurement, competition, intellectual property rights and commercial goods - Including the provisions related to labor and environmental standards - Simplification of rules of origin - Non-tax issues is enhanced (transparency Bill, acknowledge each other, in accordance with international standards, discussed regulatory issues and technical support) However, the EU does not really desire for open market like the United States should in the FTAs of the cube: - The issue of open market not heavy (especially with issues regarding agricultural products and Agriculture) - Can accept the roadmap is open longer than - Not too interested in the services sector and investment are not open as well as the settlement of disputes between investors with the Government, to allow for negotiations on the "protection" with partners in a number of sensitive services sectors (e.g health, education, communications etc.) - Not too stressed to the strong binding elements in domestic law - No more demanding agreement on intellectual property rights in the WTO (TRIPS +) with respect to intellectual property issues (except for the issue of geographical indications) - Do not necessarily require WTO + issues, labor standards, the environment (adopted international standards included) b) Pay attention to the non-trade issues (for "EU export model" to other countries through FTAs), for example: - "Social Justice": FTA with the aim of strengthening the European values, including issues of environmental standards, social and cultural diversity worldwide - Link the trade issues with climate change (FTA provisions on trade and sustainable development) - The statement of the FTA on climate change, democracy, and human rights issues c) The issues to manage risks in international trade (related to SPS and TBT): use caution with the standard trade restrictions with the network of safety and health (which not be based on international standards) - The scope of the FTA that the EU often concluded with developing countries, as mentioned above, we can see Vietnam can achieve favorable agreements with the EU that trade-offs are not so much about the opening market (not too stressed by the EU in this issue), but Vietnam may have to accept commitments beyond issues of trade (such as environmental, labor, social values EU,etc, ) - Businesses can refer to the scope of the FTA that the EU has signed to make preliminary plans or proposals for each group of issues related to their industry in line with the interests of the EU industry and ease the acceptance receive 1.1.5 The effect of VFFTA to the fields of Vietnam Food production, Vietnam is the largest impact will be subject to the reduced 11-26% of output and 13-30% of workers (both skilled and simple labor) The income from this sector will decline because of both output and prices are falling So farmers in Vietnam will have difficulty when consumers benefit because the price reduction On trade, Vietnam will experience more difficult, Vietnam will boost exports 26-44% thanks to the low initial levels However, due to the market share of the food trade in the total trade between the EU and Vietnam small so not much substantive impact As for the food-processing industry, Vietnam will reduce manufacturing (Vietnam rising 14.99-33.05%) and price Textiles, apparel & footwear: Vietnam will increase 154.1% footwear and rose 133.1 percent of labor and 14.6% of the production of apparel However, in the textile industry, Vietnam's production will fall by 17% and 23.3% reduced labor Overall, Vietnam is considered to be most beneficial and will be the transformation of labour between field Production of autos and parts: Vietnam will decrease production Due to the initial trade (prior to the FTA) of this sector are very low, Vietnam will reduce production at most (28-47%) and reduced revenue by about 35% Financial services & insurance: Vietnam has advantages in the field of financial services, but will have difficulty in insurance services However, if both this field 2, the output is steadily increasing for all ASEAN countries FTA will not impact heavily on the price of financial services, but in Singapore the price of insurance will decrease while increases in Vietnam The biggest impact of the FTA for theVietnam trade in financial services and insurance, particularly imports In the field of financial services and insurance, Vietnam are all rising exports, increased imports and reduced labor for Vietnam, a negative effect to insurance services will reduce about 25% of labor Aquatic products: FTA does not cause big impact, but in the short run production of Vietnam will decrease Production will increase for most ASEAN countries, except Vietnam However, due to Vietnam's exports to the EU will increase and with the price of EU market than many other markets should the producers would benefit, while consumers will not benefit due to the price increase With the implementation of FTA, seafood exports of ASEAN countries are producing strong fisheries will increase soon After the long-term restructuring process, exports will focus on items with higher value, however specific level will depend greatly on the agreement on rules of origin for these products in the FTA, because some countries have to import raw seafood Raw material exports will decline due to her for the process industry 1.2 Establishment History and development of the Company 1.2.1 Overview of Van Lan Joint Stock Company Certificate of business registration no: 0203002084 Corporation by the planning and investment of Hai Phong city signed on 27 February 2006, the registration level change for the third time on May 29, 2008 Head Office address: 110 Km, Highway 5, Dong Hai Ward I, Hai An district, Hai Phong city Since March 20, 2013, Office construction company Van Lan switch back to the new address at: room 311-312 new petroleum hotel building, at 441Da Nang street, Dong Hai I Ward , Hai An district, Hai Phong city Phone number: 0312.219.255; Corporate fax number: 0313.979.538 Charter capital: 1,650,000,000 VND Face value of shares: 1.000.000 VND • The value paid shares: + The number of shares : 1.650 stake + The value of shares :1.650.000.000VND 1.2.2 Scope of Business of the Company  Transportation and freight services, passenger waterway - the road  Sales of petroleum products, construction materials, fuel, internal combustion engines, machinery, equipment, automobiles, construction machinery, materials, tires, automotive parts, motorcycles, drugs domestically produced tobacco, wine, beer, soft drinks, candy  Business and mining  Business, processing and aquaculture - seafood  Recycling of scrap, waste  Production of agricultural products - native products, handicrafts, textiles, paper, leather, animal feed, fertilizers, materials, machinery, equipment, tools, technology information  Business services, travel, dining restaurants  Construction of civil, industrial, transportation, public  Freight forwarding services, customs brokerage  Services export goods In fact, the main line of business of business is business freight services 1.2.3 Business Process freight  Signing contracts with freight transport lessee  Perform freight  Transportation of goods: Goods deemed to have been delivered to the shipping company to be computed from the received enough goods company, to complete the procedures and give tenants transportation bill send commodities  Check the name and status of goods; Sealing goods  Store products in transit  Delivery to the consignee 1.3 Analysis of the impact of positive and negative of VEFTA to enterprises in Vietnam in general, Van Lan Joint Stock Company in particular 1.3.1 Reason for choosing Van Lan Joint Stock Company to research topics Van Lan Joint Stock Company is import-export business, specializing in the field of automobiles and auto parts, and food processing FTA is negotiated, so the unknown will exclude what However the rate in terms of macro, until the year 2015, 2020 and 2025 Through the subdivision for agriculture, industry, services, tariff policy of the EU for goods exported from Vietnam have specific changes The branches are likely to benefit the most include textile and garment, footwear, food processing However, the degree of expansion of production capacity to meet rising demand by the EU of a number of items that will decide the overall increase on exports have significantly or not; service areas according to the expectations also expanded significantly and can increase performance for the entire economy If there is no such intensive review will not see the tremendous impact because the EU is the largest export market of Vietnam Even so, VEFTA would still be considerable pressure to the country's exporters The EU market is quite rigorous in asking about the quality of the product, the origin of goods, sanitary epidemiological, labor standards and But if you look on the positive side, this is an opportunity to convert the production platform, encouraging clean technology investments, improve competitiveness and corporate responsibility So, besides its positive effects, the VEFTA still poses for businesses not small challenges, including the Van Lan Joint Stock Company The business of the company is one of the main subjects under the influence of VEFTA, with a direct impact to the business 1.3.2 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam when Vietnam to join the free trade agreements Vietnam - EU (VEFTA) a) The positive impact: First, if VEFTA was signed, the EU will waive tariffs for most products exported from Vietnam, bringing an important comparative advantage for Vietnam's goods with other competitors store information on the EU market, reduces the risk of not being entitled to preferential tariff regulation (GSP) Vietnam tariff reduction follow FTA between the two sides also benefit if EU exports of goods and technology, raw materials, trade, service,etc, High quality in Vietnam, in the long term contribute to increase capacity competition for Vietnam business; Vietnam on the other hand will also improve the legal framework in non-commercial areas better Second, benefits from VEFTA should be viewed from many different aspects, not just in the balance of import and export Even after the FTA, if Vietnam became a net importer in trade relations with the EU (an unlikely possibility), this is also good for Vietnam when can supply high quality and durable replacement than focusing imported goods of poor quality, outdated technology from one country today Third, according to experts, the negotiation and signing of FTA with Vietnam, the EU expectations which will boost exports and promote investment in Vietnam aims to ASEAN and other Asian countries such as Japan, China, India,etc, ; create marketing opportunities for investors and service providers of the EU,etc, The 4th, when EVFTA was signed will bring great benefits for many sectors of Vietnam as well as increase two-way trade In addition, the expansion of production capacity in Vietnam also has many advantages and advantages, by EVFTA is expected to spur investment and technological innovation thanks to the tax pressure for the technological machinery and equipment to be reduced to a maximum, then shift the productivity and increase output However, for effective enforcement EVFTA, Vietnam needs to ensure the interests of business and Government are mainstreamed in the final agreement At the same time, there should be more consultation activities, to analyse and raise awareness for the parties concerned to negotiate FTA there is still very poor in Vietnam The 5th, When EVFTA is signed, the EU will tariff exemptions for most export products of Vietnam, providing an important comparative advantage for Vietnam's goods with the other competitors for circulation on the EU market, reducing the risk of not enjoying tariff preference regulations universal (GSP) Vietnam cut tariffs according to the EVFTA between the two sides also benefit when the EU exports of technological products, raw materials, trade, service,etc, There is high quality in Vietnam, contributing in the long term to help increase their competitiveness for businesses to Vietnam On the other hand, Vietnam will also improve the legal framework in many non-commercial sector better Along with that, after signing the agreement, Vietnam will have more about 95,700 people will get rid of poverty by 2020 In addition, according to experts, through the negotiation and signing of the EVFTA with Vietnam, the EU was expected to boost exports, promote investment in Vietnam toward the goal of ASEAN and other Asian countries such as Japan, China, India, and at the same time, creating more opportunities for market access for investors and provides the service of the EU The 6th, The signing of FTA Vietnam - EU would be an important boost for Vietnam to further promote economic relations and trade with the EU With the size of 500 million consumers and GDP over 17,000 billion USD, the EU is a large market 10 for enterprises of all countries, including Vietnam Currently, Vietnam's exports to the EU reached only 0.8% of total EU imports In fact, only 42% of export turnover of Vietnam to the EU enjoy 0% tax rate (including articles of Preferential general tariff GSP) While this rate of some ASEAN countries amounted to 80-85% Thus, both sides have strong potential to develop economic relations and trade after the FTA The 7th, setting up a FTA with the EU will certainly contribute to the process of creating the business environment, investment openness, more ventilation, since that would promote direct investments from the EU and other countries in Vietnam More and more EU companies choose Vietnam due to treat this as a good investment destination Vietnam's companies often lack the know-how, technology and capital: the elements are available in European companies with international growth potential On the other hand, labor costs in Europe and therefore does not compete in the global context The cost structure of the companies rather attractive Vietnam, Vietnam's advantages are quite diverse, better quality as well as the protection of intellectual property rights better than those in other countries in the region Therefore, cooperation between the EU and Vietnam is a relationship brings many benefits, help companies of Vietnam to reach West's knowledge and at the same time giving the European company a production base for reliable and cost effective in Asia not only the EU's investment in high-tech products increased, The FTA will also promote the FDI by the EU in the field of high-quality services that Vietnam's economy is desperately needed as financial services-banking-insurance, energy, telecommunications, ports and maritime transport thanks to alleviate the conditions for EU service providers With the scale and potential of the EU investment development, Vietnam has the opportunity to become the central switch, connected to the activity of the EU's trade and investment in the ASEAN region This will be of great help to the process of economic restructuring, growth pattern transformation in the direction of Vietnam In principle, join the FTA means open to foreign goods on the domestic market, and vice versa, domestic goods, easy access to more foreign markets Then on the market Member States, including Vietnam will have a chance to discount those items in the agenda of tax relief However, the reality may not have the instant discount some items by themselves have had low import tariffs; or not lies in the rapid 11 reduction of tax; or due to market policies of member countries not yet perfected and inefficiencies, which causes prolonged and protection status of market monopoly, etc This fact is true for both Vietnam, such items and imported dairy products in recent years (particularly for dairy goods, prices were constantly left due to other causes such as raw material prices added up, large advertising costs are cornered on pricetoward the mentality, a foreign buyer for the excessive advertising on the mass media about the quality of some foreign milk products; loophole of market management mechanisms, including chassis and price is too wide and the inability of measures linked exclusively about price,etc, ) According to the General Statistics Office, the total level of shipping commodities, Vietnam imports showed that from 2005 to the present, as from 2007, the effect of the tax cuts under the roadmap commitments in the international trade agreement that Vietnam's export turnover to participate, have markedly improved in both speed and scale over each yearexcept in 2009, due to the impact of the economic crisis-global finance In addition, Vietnam bilateral trade agreement (BTA)-the United States has contributed to the economic relations of the two countries achieve these impressive results, including two-way trade turnover of 450 million USD in 1995 has increased to more than 15 billion dollars in 2009 Free trade agreement between India and ASEAN will help to more than 4,000 items of ASEAN member countries are easily entered the market of 1.1 billion people of India, contributing to boosting bilateral trade value rose from 40 million USD at present to over 100 billion within the next five years Have to say, your participation in the FTA between ASEAN with China and India, Vietnam will have a chance to advance potential giant market accounted for more than 50% of the population and GDP in the world, with the technological resources and financial resources necessary,etc, Current trade relations, the EU is currently the third largest trading partner of Vietnam and is the second largest export market of Vietnam (after the u.s.) In 2008, the total turnover between Vietnam and the EU reached 14.9 billion dollars, up about 2.5 times compared in 2003 In particular, exports to the EU reached 10.85 billion u.s dollars, up 19.36 percent, and imports from the EU reached 5.4 billion dollars, an increase of 6% compared in 2007 The Group of Vietnam's exports to the EU have high growth rates are the traditional products like textiles, garments, furniture, green 12 coffee beans, seafood, accounting for nearly 80 percent of the total export turnover of Vietnam to the European market The EU market is the largest footwear exporter of Vietnam, with 2.5 billion won The main imports are machinery and equipment, technology, transportation, chemical,etc, In which the biggest import from Germany with reached 1.48 billion (accounting for 27.2% of turnover), followed by France, I-Ili-a turn is more than 820 million USD and over 669 million USD Thus, the structure of import and export goods not only to compete but also to computer support In recent years, Vietnam's Super to EU from to billion dollars per year So, consider a direct way, in trade relations with the EU, the Vietnam business, including FDI, will benefit when lower import tax Investor relations, currently, twenty-one of the twenty-seven EU member countries have investment projects in Vietnam If we have the right policy when doing business with the EU, to be able to acquire high-tech, technologies from the EU, facilitate industrialization, modernization There needs to be an appropriate roadmap for FTA Vietnam With regard to exports, not only have advantages as we all know, that the requirements for the quality of goods, environmental standards, origin of goods, intellectual,etc, The EU is very high, these measures, technical barriers is always a challenge to Vietnam's export businesses Many analyst said that the EU was applying "double standards" in trade policy with many developing countries On the one hand, the EU sought to increase the pressure to open markets for goods, services and investment with the partner countries, on the other hand still firmly maintain protection through strong support policy of agricultural fields and other protectionist measures For imported goods, whether businesses that Vietnam can cope and compete with the goods and services of high quality from the EU, whether the slogan "The regular Vietnam Vietnam" is true when the psychology of consumers toward foreign goods are also quite popular and quality items as well as a lack of price competitiveness in the domestic market? Can anticipate the competitive pressure in the electronics, automotive, motorbikes and machinery, equipment, etc This sector may be in decline due to the impact of the Vietnam-EU FTA 13 The FTA between EU-Vietnam will broaden for Vietnam's goods exports to the EU; reduce or eliminate tariff barriers (proposed Vietnam's goods to 90% in the EU are entitled to a tariff of 0%) Vietnam currently are adjusting strategies to attract FDI (foreign investment), quality-focused investors with the possibility to transfer new technology,etc, The EU's partners are fully capable of satisfying the requirements of that b) Negative impact: First, when signed FTA accords with the EU, Vietnam businesses will bear great competitive pressure at home The EU goods when going into Vietnam will more easily and will be cheaper (by not subject to import tax) at the same time enterprises from the EU can be easily established enterprises with 100% foreignowned operations in Vietnam and participated in the field at present Vietnam does not yet have the strength or are in the early stages of development, such as the logistic industry, sea port, some loss of consumer goods With management experience, superior to superior quality of EU businesses, Vietnam business risk will be Bulgarian part is pretty obvious Second, the FTA could set out for Vietnam the requirements more closely on the issue of dumping, subsidies and the use of trade defence instruments With some of the industry's export strengths, the EU will require cutting the fence tax-free, firstly remove the form of subsidies from the Government of Vietnam Some of the major exports of Vietnam as shoe leather and aquatic products will be more impact if Vietnam is not resolute defending Third, when the signing of the FTA with the EU, Vietnam is still facing problems concerning the quality of goods Want to export to the EU, Vietnam businesses have to comply with the terms and regulations on hygiene, environment, labor and technological processes This will cause the small and medium enterprises, Vietnam's hard to meet demand due to the financial and technical capacity limitations, unqualified products to sell on the market Meanwhile, European enterprises have greatly experienced, reputable and advantages both in terms of technology and management in the context of the foreign enterprises can also establish the material production plant or establishment of auxiliary industry of their own, the small and 14 medium enterprises of Vietnameven when just producing for the domestic market would also face great risk forced downsizing production or bankruptcy In addition to the aforementioned challenges, the signing of the Vietnam-EU FTA also creates the risk of Vietnam enterprises were annexed as well as the increased risk of making Vietnam fall into "the trap of trade liberalization" If the domestic economy without far-reaching reforms In parallel with these opportunities from the new Vietnam business FTA will also be faced with considerable challenges Businesses are able to export opportunities lost if one does not know about the opportunity to take advantage of (TPP-secret talks), does not qualify for tariff preferences (a new origin rules, procedure of the new certificate of origin) In addition, domestic businesses are also facing stiff competition on the domestic market, faced with the hurdles new disguised in the context of the trade defence cases in the capital markets have been known to "rampage " The top challenges that Vietnam must face when joining FTA is the risk of increased trade deficit due to the disadvantage of their competitiveness on price, technology and production structure, foreign trade According to figures, Vietnam's trade deficit level in 2008 was 18 billion dollars (rounded) increased four times the level of about four billion dollars in 2005, the high speed double the increase of the foreign trade turnover and turnover in the same period of comparison Typically, the trade deficit of Vietnam from China in the same period of comparison, the export growth rate of Vietnam into the Chinese market only on less than 3%, while the import growth rate is above 32%, leaving the deficit from China accounts for more than 90 percent of Vietnam's annual deficit from 2005 to the present In total, in the future, the FTA will have significant impact on the business activities of enterprises Vietnam as tax cut deeper and closer to nature liberalization bold business market more, the technical barriers become more diverse, more complex and higher for the export business and Vietnam FTAs as high quality, with coverage areas from basic areas such as trade in goods, trade in services to new issues such as government procurement, competition policy, the effects on the environment, labor the participation of high-quality FTAs will create conditions to promote reform mechanisms, policies and business environment of the country, leading to increased 15 competitiveness of the economy, while also creating greater competitive pressures and shrinking market share at home,etc, One of the major challenges for Vietnam enterprises are encountering the "internal forces" weak and vulnerable "lesions" from the volatility of global issues and domestic, especially in last five years Besides, Vietnam is now in trouble because of competition from other FTAs in the region 1.3.3 Proposes appropriate business strategy for the business When concluding FTA Vietnam-EU, both Vietnam and the EU will achieve the benefits individually However will also met the effects in common, the disadvantages for competition, market share when reduced taxes But overall, according to the experts, there is no charge for first place in export, Vietnam's imports on the EU market Vietnam businesses need a preparation, the proper route before concluding FTA Vietnam-EU In that context, clearly require enhanced solutions and the effective coordination, synchronization required between the State administration, enterprises in order to increase awareness, information, opportunity and competitiveness for enterprises and Vietnam, which note the six problems: First, the study of the method and the roadmap commitments that best suits each kind of FTA negotiations when appropriate, flexible yet secure their rights; need to consult the business community in the country and learn from the experience of countries going ahead in terms of policy engine when enforcing the FTA commitment Second, promote institutional reform, including economic and political institutions, and staff, the procedures and administrative procedures, including shortening the time and simplify the way certificate of origin of goods-C/O to enjoy preferential tariffs for business, avoid to place but c/o yet and the client has not yet received Third, provide adequately for businesses, especially for small and medium businesses, the information on the level and route of tax breaks, on the open market, tariff comparison between the MFN tariffs of all countries and various preferential tax rates for other items, process C/O as well as the technical barrier to trade that countries are adopting as for Vietnam in the FTA which Vietnam is a member 16 Fourth, the development of business support services international, in which regard the information services, electronic commerce, support judicial and international arbitration,etc, The 5th, stepping up the process of restructuring the economy, developing strong ancillary industries and sectors, products that Vietnam has a competitive advantage and business partners in the different FTAS, improved navigation structureimports and global value chain of enterprises and commoditiesbrand, Vietnam The 6th, the basic resolution of the ' bottleneck ' button on the infrastructure, technology, human resources and promoting anti-corruption capacity-Basic, enhanced, effective governance for the socio-economic life in General and the activities within the framework of the FTA in particular First of all, enterprises should take the investigation, meticulous survey for market partners to explore the tastes of consumers Through it, the business will determine for themselves the appropriate step in the process of negotiating and planning data An effective information system, complete, accurate and timely is essential for businesses today At the same time, the Government should also support enterprises to Vietnam in building tools that have a higher value, such as distribution channels in the EU, creating a national brand, The negotiation and signing of the FTA will be a significant milestone in the expansion of trade-economic relations between Vietnam and the EU As a result, Vietnam businesses need to prepare thoroughly and comprehensively to get ready to enter the contest In fact, many businesses have yet to fully take advantage of the tariff benefits from FTAS not know, does not meet the conditions of a rule of origin, or by the sequence of procedure c/o complex incentive of The leverage ratio C/O incentives on export turnover is also very low For example, with the incentive of the Korean, Vietnam business exploits are over 70%; also with other countries is only about 20%, even with the incentives are completely vacant Furthermore, the opening of the domestic market under FTA has a broader scope, so the REAL Vietnam will face increased risk of lawsuits the trade defense The technical barriers in trade and quarantine requirements from these markets will increase rather than decrease when the tax barriers no longer Other than the previous period, when business was less engaged and aware to the negotiations and trade 17 agreements, in this period, enterprises need access to information to negotiate, be directed to determine, assess the impact for businesses, are substantive and regular consultations In addition, when the FTA was signed, to provide accurate information to businesses, full, can understand about the FTA, guide and practical ways to take advantage of the opportunities from the FTA and especially advise on FTA for the business when they need it The Government can assist the small and medium enterprises by training, consulting support, these are not banned under the commitment to the FTA 1.3.4 Proposes solutions for Van Lan Joint Stock Company Implementation of the FTA would also bring benefits to businesses, investors in the formation of regional production chains Raw materials inputs would enjoy incentives, facilitate domestic production, expanding the market for the products or services of the investors Access equipment, clean and modern technology, access to capital investment quality, remove goods tariffs, transparency, simplification of import procedures for holding Van Lan Joint Stock Company can take advantage of the opportunities from FTA is no easy thing in the context of corporate competitiveness is also weak In fact, the Van Lan Joint Stock Company has yet to fully take advantage of the tariff benefits from FTAS not know, does not meet the conditions of a rule of origin, or by the sequence of procedure c/o complex incentive of The leverage ratio C/O incentives on export turnover is also very low Furthermore, the opening of the domestic market under FTA has a broader scope, so the Van Lan Joint Stock Company will face increased risk of lawsuits the trade defense The technical barriers in trade and quarantine requirements from these markets will increase rather than decrease when the tax barriers no longer Other than the previous period, when the company was less engaged and aware to the negotiations and the trade agreement at this stage, companies need access to information to negotiate, be directed to determine, assess the implications for the company, and in fact consulted regularly In addition, when the FTA was signed, construction Van Lan Joint Stock Company need to update these information accurate, complete, can understand about the FTA, learn practical ways to take advantage of the 18 opportunities from the FTA and especially to hire experts to advise on the FTA to the company if required 19 LIST OF REFERENCES [1] Lecture courses International Business Management, Assoc Dr Ngo Thi Tuyet Mai, 2014 [2] International Business Administration, Nguyen Thi Lien, 2013 [3] The financial statements of Van Lan Joint Stock Company, 2013 [4] Annual Report of Van Lan Joint Stock Company, 2013 [5] VEFTA impact of enterprises, Le Bao An, 2013 [6] VEFTA processes involved, Truong Thi May, 2013 [7] Enterprises in the integration process, Le Thi Phuong, 2013 [8] Business management tools, Nguyen Thanh Phuong, 2013 [9] The relevant documents 20 ... Vietnam small so not much substantive impact As for the food-processing industry, Vietnam will reduce manufacturing (Vietnam rising 14.99-33.05%) and price Textiles, apparel & footwear: Vietnam... Vietnam when Vietnam to join the free trade agreements Vietnam - EU (VEFTA) a) The positive impact: First, if VEFTA was signed, the EU will waive tariffs for most products exported from Vietnam,... trading partner of Vietnam and is the second largest export market of Vietnam (after the u.s.) In 2008, the total turnover between Vietnam and the EU reached 14.9 billion dollars, up about 2.5