Want to be in the loop?
subscribe to
our notification
Business News
CPTPP STILL HOLDS UNTAPPED POTENTIAL FOR VIETNAMESE BUSINESSES
There is still a lot of untapped potential for Vietnamese businesses in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) three years after it went into effect, said policymakers and industry experts during an online conference in Hà Nội on Thursday.
Ngô Chung Khanh, deputy head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade (MoIT), said Vietnamese businesses have been increasingly interested in taking advantage of the trade agreement, the largest of its kind signed by the Southeast Asian country in recent years.
According to a survey conducted by the Department of Việt Nam Commerce And Industry (formerly known as the Vietnam Chamber of Commerce and Industry or VCCI), 9 per cent of businesses now said they possess a "deep understanding" of CPTPP, a significant improvement from just over 2 per cent from two years ago.
During the same period, the country's export turnover to CPTPP markets improved significantly, notably to Canada and Mexico. Last year, Việt Nam reported a trade surplus of more than US$8 billion with the two mentioned-above countries alone. It has reflected a growing interest among Vietnamese exporters in CPTPP markets.
However, Canada and Mexico could be considered small to medium-sized markets. While growth has been impressive, they only accounted for just under 3 per cent of Việt Nam's total trade with the bloc.
Another issue, according to Khanh, was even traditionally strong Vietnamese export products still struggled to penetrate CPTPP markets.
Nguyễn Xuân Dương, chairman of Hưng Yên Garment Corporation (HUGACO), said that major hurdles for Vietnamese textile manufacturers included difficulties in meeting CPTPP's product origin protocols, inadequate investment in expanding production and technology.
Dương said the country still relied heavily on raw material import from China (43-45 per cent) and has not been able to clear CPTPP's requirements on product origin, a prerequisite for tariff reduction. He added the underlying issue was a lack of capital investment and industrial infrastructure, which could be attributed to not having enough large consumer markets.
Even those who managed to secure the required investment to expand their operations could not bring production to full throttle. Many said they could only produce at 30-40 per cent of their designed capacity.
Another key issue was CPTPP's high environmental standards, which have proven difficult and costly for Vietnamese businesses to overcome.
Nguyễn Thi from the Ministry of Natural Resources and Environmental said many new-generation free trade agreements placed great importance on preserving the natural habitat, biodiversity and workers' well-being.
"Production is only a part of the equation. What good is profit if our natural resources and living habitat continue to be degraded," Thi said.
"In the long run, it is not sustainable. Input costs will eventually increase as resources dwindle while demand falls as human well-being suffers," Thi said.
He urged businesses to seek out sustainable technologies actively, saying it's no longer an option as consumers in developed markets have become highly conscious of environmental issues, which translates into political pressure to revamp the production model.
Đỗ Thị Thu Hương, deputy head of MoIT's import/export department, said Vietnamese businesses have been able to capitalise on the trade agreement's available tariff advantages, especially Canada, Mexico and Peru, which had not signed free trade agreements with Việt Nam before CPTPP.
In Việt Nam-Canada trade alone, since the implementation of CPTPP, Vietnamese businesses reported they could benefit from 24 per cent of the available tariff advantages.
Source: VNS
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.