The Hanoitimes – On March 1, the Ministry of Industry and Trade held a seminar themed “TPP – Opportunities and challenges for the industry development in Vietnam.”
Speaking at the seminar, Mr. Tran Quoc Khanh – Deputy Minister of Industry and Trade stressed: Free trade provides an opportunity for the market but also creating greater competitive pressures in the domestic economy; State roles as policymakers, but the market itself is screening, evaluating the effectiveness of that field. Therefore, enterprises should actively explore the relevant information about the free trade agreement, in order to capture information as well as specific commitments in the field of production, its business, from including measures to take advantage of the opportunities that the TPP brings.
The Trans-Pacific Partnership (TPP) has concluded after five years of intense negotiations, marking a historic milestone for its member countries, including Vietnam, which is now presented with both new opportunities and challenges. According to the Ministry of Industry and Trade, trade ministers of the 12 TPP members, who met for five days (instead of three days as planned) in Atlanta, the US on October 5 reached an agreement on contentious issues – including market liberalisation, intellectual property, labour regulations and state-owned enterprises – officially concluding negotiations for the ambitious and comprehensive trade pact.
According to Minister Hoang, the TPP is considered a model for regional economic cooperation in the early 21st century, with 30 chapters covering not only traditional issues such as trade in goods, services and investment, but also new issues such as e-commerce, supply chain facilitation and state-owned enterprises. The TPP will be a comprehensive and high-standard trade agreement, taking into account the diversity of levels of development of its member economies. It is also expected to boost economic growth in all TPP members; create jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty; and promote transparency, good governance, and strong labour and environmental protections.
In order to expand production and exports, and mitigate the negative impact of market opening, the government and enterprises should work together immediately. Government agencies need to conduct further research into the impact of the TPP on trade in goods, investment and services as the basis for long-term policy establishment and adjustment.
Vietnam also needs to introduce polices to develop industries where it sees potential and has strengths in the TPP region and support domestic enterprises to get involved in regional supply chains. At the same time, necessary policies should be formulated to help increase value in all sectors of the economy through capacity upgrading, technology, long-term cooperation with strong partners in respective fields, and diversifying and innovating products.