Be Equipped with New-generation FTAs’ Rules

VCCI Vice President Hoang Quang Phong said the enforcement of new-generation FTAs such as Trans-Pacific Partnership (TPP) requires deep commitments to both traditional contents like trade, service and investment and non-traditional contents such as environment, intellectual property, e-commerce and SOE restructuring.

To effectively implement FTA commitments and take advantage of FTA opportunities, the Central Enterprise Bloc must restructure in a more drastic manner. "The restructuring must be carried out synchronously and consistently from labour, capital, science and technology, and governance capabilities, including risk management, while it still has to focus on investments in core business areas,” he said.

Mr Ho Xuan Truong, Member of the Standing Committee of the Central Youth Union, Member of Party Executive Committee of the Central Enterprise Bloc, and Secretary of the Youth Union of the Central Enterprise Bloc, said: “Youth Union staffs of the Central Enterprise Bloc must uphold the vanguard spirit, grasp information of new-generation FTAs, clearly define their own responsibilities to better contribute to building their enterprises to raise their competitiveness and sustainability to fully utilise FTA opportunities."

Dr Tran Dinh Thien, Director of the Vietnam Institute of Economics, pointed out that, after nearly eight years of joining the World Trade Organisation (WTO), Vietnam's economy still faced with difficulties because it was not fully active to join this trade bloc. The country’s economic growth climbed from 5.25 percent in 2013 to 5.98 percent in 2014 and 6.03 percent in the first quarter of 2015. Inflation was curbed at a low level while foreign exchange reserves increased and exports augmented. However, the prolonged low inflation showed the inertia of capital in the economy because of difficult profitability. The recovery was primarily driven by the foreign-invested sector.

Therefore, he recommended that Vietnam must have a long-term strategic vision for the future and must be aware that integration not only means "opening" as in previous years but means entering a common playground where it must obey the rules and may face potential risks.

Ms Phung Thi Lan Phuong, Head of FTA Division under the WTO Centre affiliated to VCCI, said that Vietnam is now focusing on seven FTA negotiations. Trans-Pacific Partnership (TPP) and Vietnam - EU FTA (EVFTA) are two new-generation FTAs. She added that the biggest difficulty against Vietnamese businesses is to receive and process information.

Mr Vu Anh Duong, General Secretary of the Vietnam International Arbitration Centre (VCCI), related FTAs to "ticking bombs" as not only businesses but the government may face lawsuits and trade disputes at any time because "FTA rules" are extremely complicated and severe. If we lose a lawsuit, the price we have to pay may amount to millions or even billions of US dollars. He advised Vietnamese businesses to study FTA commitments carefully and make response preparations to any emerging risk cases, including technical barriers to trade and trade remedies which are growing in number.

In the framework of the conference, affiliates to the Youth Union of the Central Enterprise Bloc signed agreements on coordinated actions for the “Common success of integration.” Coordination contents include (1) Youth Union members constantly study, practice, and uphold morals, political qualities and professional qualifications to stand ready for successful integration; (2) Youth unions speed up communication and dissemination of information about international economic integration; (3) Each union must have at least two useful initiatives and solutions to advise its Party committee and executive board to enhance integration capability for the unit; (4) unions jointly build a cooperation mechanism for information exchange and experience sharing, particularly those in the same industry; and (5) unions must speed up international cooperation and exchange.