Hanoi (VNA) –The Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) has recently taken effect in Vietnam, which will bring about bothopportunities and challenges for many fields, including agriculture.

Tran Van Cong,deputy head of the Agro Processing and Market Development Authority, said thatVietnamese firms will be able to expand their export markets to some of theworld’s largest, as well as boost exports of high-value processed produce,making it easier to join the global supply chain.

According to Cong,processed fruits and vegetables, and dairy products will face intensecompetition. However, the sector also has some advantages in low-costmanufacturing and low-paid workforce, along with an abundance of supply.

In order to fullyreap the benefits of the CPTPP and mitigate the impacts of possible challenges,he said the agricultural sector must step up restructuring by improving addedvalue and sustainability, and limiting reliance on imported materials.

Focus must be given to national, provincial,and local-level products in combination with geographical indication and the“One Commune, One Product” programme, he said.

Meanwhile, the woodsector will benefit from preferential tax as import tax for Vietnamese woodenfurniture into Canada, Mexico, and Peru has been high in the past.

Huynh Van Hanh, Vice Chairman of the Ho ChiMinh City Handicraft and Wood Industry Association, said incentives from theCPTPP will help the sector reduce prices and improve its competitiveness.

Vice President of the Vietnam Timber andForest Product Association Nguyen Ton Quyen said that apart from woodenfurniture, taxes for wood processing equipment will also be cut to zero,raising hopes for wood processors.

He suggested that domestic firms improvecorporate governance, technical process, and marketing. –VNA