Utilization of commitments in the New-generation FTAs: Empirical evidence from Vietnam

The escalating number of FTAs signed by Vietnam has proven the country’s proactiveness in global economic integration. New generation FTAs contain comprehensive schemes beyond tariff reduction, bringing various opportunities for Vietnamese firms in the global market. Understanding factors underlying firms’ adoption of FTA provisions is crucial for policy leverage. A survey of 221 firms in Vietnam suggests that the perceived usefulness of FTA and organizational learning are key determinants of firms’ ability to utilize FTA commitments. Government supports and leaders’ attitudes toward FTAs do not directly impact firms’ ability to utilize them but channel effects via perceived usefulness and organizational learning. The findings have implications for businesses to create a positive learning culture and imply the government’s actions to improve perceptions of businesses about the usefulness of FTAs.