Firms urged to target TPP
Firms urged to target TPP
Domestic enterprises should actively build plans and strategies to expand markets in countries joining the Trans-Pacific Partnership (TPP) Agreement.
Ngo Chung Khanh, deputy director of the Ministry of Industry and Trade's Multilateral Trade Policy Department, made the suggestion at a conference in Ha Noi yesterday.
The TPP pact, also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade deal that aims to further liberalise the economies of the Asia-Pacific region.
There are presently nine TTP countries (so called TPP9) – Viet Nam, Australia, New Zealand, Brunei, Singapore, Malaysia, Peru, Chile and the US.
Khanh said the TPP agreement aimed to remove all tariffs and investment restrictions and that it would even include non-business fields such as labour, environment and corruption.
He said the TPP deal would help participating economies reach a combined gross domestic products (GDP) of over US$35 trillion by 2025, and help lift Viet Nam's GDP to $235 billion in the same period.
The rise in the nation's income would be backed by increasing exports of processed products, greater access to imported goods and stronger foreign direct investment growth, he said.
The TTP agreement will include garments and textiles, footwear, electrical goods and transportation, which should see import-exports increase sharply by 2025, he said.
Khanh suggested that firms concentrated on working out plans to expand sales in the US and enhance their competitiveness, while strengthening co-operation with foreign partners regarding global supply chains.
Tran Quoc Khanh, head of the Government delegation for international economic and trade negotiation, said the TTP pact was the most comprehensive free-trade agreement that Viet Nam would have participated in.
"Viet Nam, when it joins the TTP pact should focus on expanding export markets, boosting foreign investment, while supporting economic restructuring and aiming to achieve more sustainable, dynamic and efficient models of growth," he said.
"In order to fulfil those targets... there will be challenges in the public administration area, but the majority of challenges will be set out for businesses," he added.
Khanh said the country would need to change its policies to meet TTP rules, while companies were likely to face more competition within the TTP framework.
Yesterday's conference heard that local authorities and businesses should strive to improve conditions for public procurement, labour, goods origins, sanitation for farm produce, the environment and intellectual property rights in order to qualify for integration.
Viet Nam officially joined TPP negotiations in November 2010.
TPP13 is expected to be established over the next few years with the participation of Canada, Japan, South Korea and Mexico; and a free trade area in the Asia Pacific (FTAAP) to liberalise 21 APEC economies
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