Can Tho (VNA) - The Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) is expected to help Vietnamcontinue speeding up its reforms in order to tap opportunities and deal withchallenges from the deal.

Minister of Industry and Trade Tran Tuan Anh made the statement at a conferenceon the CPTPP and market development held in the Mekong Delta city of Can Tho onMarch 21.

According to Anh, an official study of the Ministry of Industry and Tradeshowed that economically, the CPTPP can help Vietnam’s GDP and export expand by1.32 percent and 4.04 percent by 2035, respectively.

Socially, the trade pact can help increase total job opportunities in Vietnamby 20,000-26,000 per year. The World Bank forecast the agreement to helpVietnam reduce 600,000 poor people by 2030.

In addition, cutting down non-tariff barriers to trade and investment in allCPTPP members will help ease business costs and risks in Vietnam and increaseopportunities for enterprises to expand markets and diversify investmentresources.

Minister Anh said the active participation, negotiation and signing of theCPTPP showed the unified policy of the Vietnamese Party and Government ininternational economic integration.

“The ministry has implemented solutions to expand markets, promote exports,strengthen import control and limit its trade deficit. It is formulating andsubmitting to the Prime Minister a scheme on handling international tradedisputes, promoting implementation of key projects, and increasing theindustry’s production capacity to contribute to economic growth,” he said.

He said verifying the origin of products is a basic requirement when exportingto foreign markets. The import markets have the right to select businesses andgrant import permits. Management agencies need to improve the law to meetmarket demand. Meanwhile, enterprises need to accompany the State managementagencies to orient the market and actively participate in expanding.

Luong Hoang Thai, Director of the ministry’s Multilateral Trade PolicyDepartment said CPTPP members committed to remove 78 to 95 percent of importtaxes as soon as the agreement took effect. Many key exports such asagricultural products, seafood, shoes, garment and textiles, wooden products,electronics and rubber would enjoy zero tax immediately or three to five yearslater. “However, fierce competition requires careful preparation from localbusinesses when joining the CPTPP,” Thai said.

To improve competitiveness of small and medium-sized enterprises (SMEs), hesaid that the Government needs to provide adequate information to SMEs,creating an equal business environment, satellite businesses and new regionalsupply chains.

Pham Tuan Anh, Deputy Director of the MoIT’s Department of Industry said theindustrial sector continued to play an important role in Vietnam’ssocio-economic development with key export products.

This result was partly thanks to opportunities from signed bilateral andmultilateral free trade agreements (FTAs), contribute to market expansion,increase investment to expand domestic production, and boost export growth.

"Participating in the CPTPP helps Vietnam multilateralise economic andtrade relations, avoiding risks due to dependence on some big markets,” hesaid.

The CPTPP would create opportunities for enterprises to export timber andwood-based products to boost exports when products such as plywood, pictureframes, door frames and especially furniture which are subject to import dutiesof between 6 and 9.5 percent will be removed immediately.

With the textile and garment industry, the export tax rate on textiles andgarments to markets that do not yet have a common FTA is currently above 10 percenton average. When the CPTPP took effect, Vietnamese garment and textile productswhich meet with common technical standards would enjoy a zero tax rate. Thesector would be strengthened with competitive advantages in price. It is also amotivation for domestic and foreign investors to invest in developing rawmaterials and support industries in Vietnam. It would establish links in thegarment and textile chain more effectively, creating a foundation for theindustry to develop sustainably.

However, the CPTPP also poses many challenges, requiring Vietnamese enterprisesto have thorough preparation as well as long-term strategies to improvecompetitiveness in the international arena.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS),said there are both opportunities and challenges for the industry.

“In the industrial development programmes, attention should be paid to creatinguniformity in investment and planning of enterprises in the industry intoindustrial parks to ensure environmental issues and labour safety standards aswell as focusing on sustainable development, as these are requirements whenbringing goods into the CPTPP market area,” Giang said.

The conference, with the participation of more than 300 delegates fromagencies, associations and businesses in 19 southern localities, aimed toresolve difficulties when joining the CPTPP and other FTAs.-VNA