Disseminating information about a number of free trade agreements On the morning of December 24, at the City Convention Center, Hai Phong City People's Committee coordinated with [...]
On the morning of December 24, at the City Convention Center, Hai Phong City People's Committee coordinated with the Ministry of Industry and Trade and the Negotiation Team The government on economics and international trade organized the conference“Disseminating information about some newly signed free trade agreements” for [...]
On the morning of December 24, at the City Convention Center, Hai Phong City People's Committee coordinated with the Ministry of Industry and Trade and the Government Negotiation Team on International Economics and Trade to organize a Conference "Disseminating information about a number of newly signed free trade agreements" for the Northern Coastal region. Attending the Conference were comrades: Tran Quoc Khanh, Deputy Minister of Industry and Trade; Nguyen Van Tung, Vice Chairman of the City People's Committee; Representatives of relevant departments and agencies under the Ministry of Industry and Trade and departments, branches, associations, and business leaders in the city.
The conference was organized to meet the information needs of management agencies and businesses about a number of new free trade agreements signed or just finished negotiating in 2015, such as the Trans-Pacific Partnership Agreement (TPP), the Free Trade Agreement between Vietnam and the European Union (EVFTA), the Free Trade Agreement between Vietnam and the Eurasian Economic Union (including Russia, Belarus, Kazakhstan, Armenia and Kirghizstan)…
With the commitments, the TPP Agreement is expected to have many advantages and opportunities: economically, TPP can help Vietnam's GDP increase by 23.5 billion USD in 2020 and 33.5 billion USD in 2025. Exports will increase by 68 billion USD in 2025. Vietnam may be the country that benefits the most among the 12 countries participating in TPP. For exports, the fact that countries, including major markets such as the United States, Japan and Canada, reduce import taxes to 0% for Vietnamese goods will create a big "boost". Particularly in the textile, garment and footwear industries, turnover can increase significantly. Agricultural, forestry and fishery products also have great opportunities to increase exports. Participating in TPP will help Vietnam gain new opportunities from new supply chains, formed after TPP takes effect.force. Commitments on services and investment are expected to have a positive effect in improving the investment environment, contributing to attracting foreign investment capital. Participating in TPP will be an opportunity for Vietnam to continue perfecting the institutional environment, supporting the process of innovating the growth model and restructuring Vietnam's economy. In particular, perfecting and strengthening the protection of intellectual property rights will open up opportunities to attract investment in fields with high knowledge content.
In addition, TPP also creates many challenges for Vietnam: in terms of imported goods, with some types of agricultural products that the United States and some other countries in the TPP have strengths, the competitive pressure is quite large when the tax is brought to 0%. Some industrial products that TPP partners have strengths in can also cause difficulties for Vietnamese production, such as paper, steel, and cars. However, there is a basis to believe that competitive pressure will not be great because Vietnam's products are aimed at the middle market segment while products from TPP countries are often aimed at the high-end market segment. High standards of transparent governance and objective behavior of the State apparatus will pose great challenges for the management apparatus. However, these are also the standards that VVietnam is aiming to build a socialist law-governed state, truly of the people, by the people and for the people, with a team of cadres and civil servants with qualities, capacity, discipline and discipline. To implement commitments in TPP, it will be necessary to adjust and amend a number of legal regulations on trade, investment, bidding, intellectual property, labor, environment... Socially, increased competition when participating in TPP may cause some businesses, first of all businesses that still rely on State subsidies, businesses with outdated production technology to fall into difficult situations, leading to the possibility of unemployment among a part of the workforce.
From those opportunities and challenges, ministries and branches need to pay attention when promulgating new policies and laws in accordance with commitments; apply and support businesses, exploit commitments to bring benefits to businesses; Administrative reform and trade facilitation. For businesses, it is necessary to find out the content of commitments related to their products in terms of aspects (tariffs, rules of origin, technical measures, defense measures). Evaluate the impact of commitments on business operations as well as partners and competitors. In addition, localities also need to recognize the impact trends of FTAs on localities and businesses in the area, and transform production structures to suit the changing business environment becauseFTA. There needs to be coordination with ministries and branches to bring information to businesses, reform administration, and support businesses through training.
Speaking at the conference, Deputy Minister of Industry and Trade Tran Quoc Khanh affirmed that the new agreements play an important role for Vietnam, supporting and innovating business structure and creating a favorable environment for businesses. Business managers need to learn and research; It is necessary to apply the agreement appropriately to each locality. Deputy Minister Tran Quoc Khanh emphasized that the biggest challenge for Vietnam is the limited skilled labor force, so it is necessary to reform the teaching and training mechanism for skilled labor to meet the needs set by the TPP.
Do Hoan
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