Opportunities and challenges posed by TPP on economic and financial sectors
The National Assembly (NA)’s Committees for External Relations, Economic Affairs, Finance and Budget and Committee for Science, Technology and Environment chaired a conference on impacts of the Trans-Pacific Partnership (TPP) agreement to Vietnam’s economic, financial and intellectual property sectors in Vinh city, the central province of Nghe An on July 7.
During the conference, delegates mentioned opportunities and challenges posed by the TPP on several industries and how domestic firms have prepared for the trade deal.
They also discussed on its impacts on finance and intellectual property sectors, and proposed institutional and legal solutions.
Speaking at the meeting, Head of the NA’s Committee for External Relations Tran Van Hang said the TPP will have significant affects to the national economy and all domestic businesses.
The pact will provide opportunities for Vietnam to improve its institutions and create a more dynamic, transparent and effective business climate, Hang noted.
The country needs to restructure its economy and enhance the competitiveness of enterprises before the agreement takes effect, he added.
According to the World Bank, the TPP may expand Vietnam’s GDP and exports by 33.6 billion USD and 68 billion USD, respectively, in 2025, as the zero customs duties in large markets like the United States, Japan and Canada would create a big advantage for the country’s exports, particularly of key industries including clothing, footwear and timber products.
Besidies, Vietnam is expected to welcome a new wave of foreign investment into the country. Vietnamese consumers and businesses will have a chance accessing to high-quality goods and input materials with lower prices.
However, he highlighted concern over the TPP commitments on fair treatment to be given to both foreign and local enterprises, which means less government subsidy for local businesses. It is also more difficult for the government to manage capital flows and ensure a safe financial market, according to Hang.
Dau Anh Tuan from the Vietnam Chamber of Trade and Industry (VCCI) said it is not easy for local businesses to understand the TPP commitments when there is very little information provided by the state agencies on these matters.
In addition, there are many other barriers in terms of taxation policies, customs procedures, infrastructure and local labour, Tuan noted.
He suggested the competent agencies examine the compatibility between TPP regulations and Vietnam’s legal system in economic, financial and intellectual property fields and continue dialogues with those touched by the trade deal to support the policy-making process for the future implementation of the agreement.
They also discussed on its impacts on finance and intellectual property sectors, and proposed institutional and legal solutions.
Speaking at the meeting, Head of the NA’s Committee for External Relations Tran Van Hang said the TPP will have significant affects to the national economy and all domestic businesses.
At the conference.
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The country needs to restructure its economy and enhance the competitiveness of enterprises before the agreement takes effect, he added.
According to the World Bank, the TPP may expand Vietnam’s GDP and exports by 33.6 billion USD and 68 billion USD, respectively, in 2025, as the zero customs duties in large markets like the United States, Japan and Canada would create a big advantage for the country’s exports, particularly of key industries including clothing, footwear and timber products.
Besidies, Vietnam is expected to welcome a new wave of foreign investment into the country. Vietnamese consumers and businesses will have a chance accessing to high-quality goods and input materials with lower prices.
However, he highlighted concern over the TPP commitments on fair treatment to be given to both foreign and local enterprises, which means less government subsidy for local businesses. It is also more difficult for the government to manage capital flows and ensure a safe financial market, according to Hang.
Dau Anh Tuan from the Vietnam Chamber of Trade and Industry (VCCI) said it is not easy for local businesses to understand the TPP commitments when there is very little information provided by the state agencies on these matters.
In addition, there are many other barriers in terms of taxation policies, customs procedures, infrastructure and local labour, Tuan noted.
He suggested the competent agencies examine the compatibility between TPP regulations and Vietnam’s legal system in economic, financial and intellectual property fields and continue dialogues with those touched by the trade deal to support the policy-making process for the future implementation of the agreement.
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