“A lot of Vietnam’s key exports will benefit from Trans-Pacific Partnership (TPP), including apparel, footwear and seafood, thus opening new prospects for these sectors. Besides, TPP will create a new momentum for FDI flows into Vietnam and draw a new generation of investors with global production chains to Vietnam, giving the opportunity for the country to become a part of global production and supply chains,” said Tran Quoc Khanh, Deputy Minister of Industry and Trade and Chief Negotiator of Vietnam for TPP, at “TTP Dialogue- Envisioned growth for business in Vietnam” co-hosted by VCCI-HCM and the Hochiminh Stock Exchange (HOSE).
Deputy Minister Khanh said TPP will form an extremely large free trade market, which accounts for 40 per cent of global GDP and 30 per cent of global trade. He said Vietnam started its international economic integration 20 years ago (in 1995) when it officially became a full member of ASEAN. With this experience, Vietnam is totally confident to start an extensive international economic integration. That is why the Government has decided to participate in TPP negotiations and other new-generation free trade agreements (FTAs) such as Vietnam - EU FTA and Vietnam - Korea FTA.
TPP will bring both opportunities and challenges to Vietnamese companies, he said, adding that international economic integration and TPP entry are not the work of the Government itself but the very cause of businesses which have to work harder, more dynamically and creatively to capture and effectively utilise every opportunity seen, rather than sit passively to wait for windfalls from the Government.
Speaking at the event, Mr Tran Dac Sinh, Chairman of HOSE, said TPP is expected to be a positive boost to Vietnam’s export and import and generate new international cooperation opportunities, thus contributing to the cause of socioeconomic development and the progress to industrialisation and modernisation. He said “I expect positive changes in the stock market under the effects of the TPP. Based on economic development, listed securities’ quality of not only directly benefited industries such as garment - textile and leather - footwear but also other supporting industries will be enhanced.”
However, opportunities always come along with challenges and risks. As the current scale of stock market is not big enough to absorb enormous foreign investment funds, competitive pressure to domestic enterprises is relatively high in the international playground. In order to transform opportunities into economic benefit, the Government should have appropriate policies from time to time to boost the healthy development of the Vietnamese stock market.” He added that “I hope that Vietnamese enterprises will take action to enhance their competitiveness and of the whole economy in general on the international arena.”
Mr Warrick Cleine, President and CEO of KPMG Vietnam and Cambodia, said that 2016 will be a milestone for the Vietnamese economic landscape in the process of international economic integration. TPP and the other international agreements such as the EU - Vietnam FTA and the integration into the ASEAN Economic Community (AEC) will create numerous benefits for businesses in Vietnam as they will have the opportunity to expand into other markets, including important markets like the United States, Japan and Australia. He warned that TPP will also increase competition across all areas, from labour, capital, and funds to real estate and other resources. Only those that are truly well-prepared are likely to be successful.”
My Chau
Vietnamese
