Economic Sector

Last updated: Wednesday, May 15, 2019


Joining CPTPP, Businesses Must Sharpen Competitiveness

Posted: Wednesday, February 20, 2019

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to produce major impacts on Vietnam’s economy, especially on the business community. Vietnam Business Forum has an interview with Mr. Mac Quoc Anh, Vice Chairman and Secretary General of the Hanoi Small and Medium-sized Enterprises Association, on this issue. Anh Phuong reports.

Could you please tell us about impacts of CPTPP on the Vietnamese business community, especially on member companies of the Hanoi SME Association?
For Vietnamese enterprises, the biggest advantage of the CPTPP is a wider market and lower tariffs, especially for commodities imposed high duties. Joining the CPTPP, businesses can do free trade and enhance market access to value chains in 11 member countries, learn a lot from enterprises in CPTPP countries, and bring Vietnamese brands and exports to more countries. For the Vietnamese market in general, the CPTPP promotes the investment environment and attracts foreign investment into Vietnam.

In addition to advantages and opportunities, the CPTPP poses challenges to Vietnamese enterprises. They must excel and compete on par with foreign rivals. Those challenges are even bigger when over 97% of Vietnamese enterprises are small and medium in size. This is not an exception in our association.

What should Vietnamese businesses do to overcome challenges and enjoy the great advantages brought by the CPTPP Agreement?
Vietnamese businesses need not only to actively seize opportunities, but also to understand both barriers and challenges that they may encounter in order to make the most of CPTPP advantages.

Besides, they need to change their business administration and thinking, focus on improving product and service quality, reducing production costs, applying measures to increase labor productivity, effectively meet demands from local supplies and export to other countries to compete with foreign competitors because CPTPP is also an opportunity for foreign companies to enter the Vietnamese market, a potential market with more than 90 million people.

In the face of the above challenges, have you had any solution to support and assist its member companies?
To enhance the effectiveness of the CPTPP, in addition to the efforts of enterprises, actions of the government are important to shape an enabling investment and business environment.

The Hanoi SME Association is now not only a bridge for economic cooperation among its member enterprises from all economic sectors, but also a bridge for enterprises and authorities. The association, a member of the Hanoi City's Steering Committee for Business Support, has worked closely with municipal departments and branches to clear difficulties against local enterprises and boost exports; stepped up domestic and international trade promotion; and carried out trade and industrial cooperation programs between Hanoi with other provinces and cities.

Thank you very much!

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