Local enterprises must give priority to the domestic market with population of more than 90 million, which is being targeted by foreign firms once the CPTPP coming into force, according to Ngo Chung Khanh, deputy director of the Multilateral Trade Policy Department under th Ministry of Industry and Trade (MoIT).
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Referring to the CPTPP as a “big playground”, Khanh said it is vital for Vietnamese enterprises to grasp opportunities arising from the deal in terms of tax incentives and institutional reform for market expansion, but at the same time they should not forgo their advantages in the domestic market.
Nguyen Van Nam, president of the Institute for Brand and Competitiveness Strategy (BCSI), said enterprises play a key role in economic development and integration. Nam said the CPTPP could only benefit Vietnam if Vietnamese enterprises understands clearly regulations set by the deal.
Economist Vo Tri Thanh reminded of the “yellow card” issued by the European Union (EU) for Vietnam’s irregular unregulated fishing, saying that it is a big lesson for the business community.
Thanh said enterprises must know the rules and regulations concerning the field they are operating in, in turn fulfilling these requirements, especially the rule of origin in trade activities.
Economist Nguyen Minh Phong added that the country’s participation in CPTPP, including its commitment in the banking and finance sector, would upgrade the legal basis on competition in Vietnam.
This is key to encourage all economic sectors, including foreign companies, to commit to long-term business in Vietnam, especially when the Vietnamese government ensure a fair and transparent business environment, Phong continued.
Moreover, the CPTPP is expected to change the mindset of government agencies. For example, the process of drafting a new law must now take into account its compatibility with the CPTPP, he stressed.
On November 12, Vietnam’s National Assembly gave passage to the CPTPP with the endorsement of 100% deputies present, which is considered the third largest free trade agreement to date.
As such, Vietnam has become the seventh member country to official ratify the 11-nation deal after the US withdrew in January 2017.
The CPTPP will enter into force on December 30 after six signatory countries of the agreement including Mexico, Japan, Singapore, New Zealand, Canada and Australia, have already approved the deal.
The CPTPP economies make up around 13% of global economic output and 500 million people. It includes tariff cuts and removal of non-tariff barriers among its members and is designed around high standards on human rights, labor practices, and environmental standards.
