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CPTPP workshop hears of opportunities and challenges

Released at: 14:12, 29/11/2018

CPTPP workshop hears of opportunities and challenges

Photo: Ngoc Lan

"CPTPP - Opportunities and Challenges for Vietnamese Enterprises" workshop held in Hanoi on November 28.

by Ngoc Lan

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will create opportunities for Vietnam to reform its institutions and help improve its business environment and foreign and domestic investment be sustained and grow, boosting the economy, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department at the Ministry of Industry and Trade, said at the “CPTPP - Opportunities and Challenges for Vietnamese Enterprises” workshop held in Hanoi on November 28.

He added that the CPTPP is one of the most comprehensive, high-quality free trade agreements with the deepest commitments ever. “Participation in the CPTPP demonstrates the active participation of the Party and the government in international integration, affirming the important role and position of Vietnam in the region as well as internationally,” he said.

Economist Mr. Nguyen Minh Phong said that joining free trade agreements in general gives Vietnam more opportunities to expand export and import markets and attract FDI inflows thanks to favorable tax incentives and fair competition policy, other support, and external resources.

Although the CPTPP gives Vietnam many opportunities, speakers at the workshop also said that joining new generation free trade agreements will put more pressure on the country, particularly from increasing competition and a narrowed domestic market share.

“Implementing the CPTPP poses challenges for Vietnam in the face of a number of complex competition cases, diverse anti-competitive behavior, and sophistication in the context of deepening economic integration in the future,” said Mr. Phong. “Challenges also come from Vietnam’s limitations, such as small-scale capital markets, weak liquidity, low market level, limited legal compliance, and weak sanctions for violations.”

Mr. Khanh said that Vietnamese businesses should take advantage of the opportunities provided by the CPTPP regarding tax incentives and institutional reform to expand the local market. “Enterprises need to take advantage of the market, with more than 90 million people, which many foreign companies are looking at,” he emphasized.

Dr. Vo Tri Thanh, Director of the Research Institute for Brand and Competitiveness Strategy, noted that businesses need to understand regulations relating to their business and find ways to meet those requirements. “When Vietnam exports aquatic products, it is important not only to ensure that products are clean but also that they meet requirements in fishing processes and the environment,” he said.

The 14th National Assembly (NA) adopted a resolution on the ratification of the CPTPP on November 12. Prime Minister Nguyen Xuan Phuc will be responsible for approving plans for the implementation of the agreement and instructing central and local agencies and organizations on carrying out plans, focusing on training human resources to optimize the opportunities and building and effectively implementing measures to prevent and handle any adverse impacts that may arise during implementation.

The NA has assigned the government to instruct ministries and sectors on finalizing procedures for ratification and announce the date the trade pact takes effect in Vietnam.

The NA, the NA Standing Committee, the NA Council for Ethnic Affairs, NA committees, NA delegations, and NA deputies are responsible for supervising the implementation of the resolution within their tasks and jurisdiction.

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