Experts say that Vietnamese firms need to prepare for the strict regulations on quality, origin and social responsibility of the Comprehensive Progressive Trans Pacific Partnership trade agreement (Photo: VNA) HCM City (VNS/VNA) – The Comprehensive Progressive Trans PacificPartnership (CPTPP) promises great benefits for Vietnamese firms, but manyregulations on technical barriers and social responsibility will have to be metin order to take full advantage of the trade deal, experts said at a conferencein HCM City on December 15.
Vietnam’s participation in the CPTPP demonstrates the spirit of cooperation andintegration, especially in light of the rising trend of protectionism aroundthe world, Dr. Le Dang Doanh, a member of the United Nations’ Committee forDevelopment Policy, said.
The CPTPP includes 11 economies that are highly supportive of Vietnam’s economyand account for 13.4 percent of global GDP.
The trade agreement promises strong tax reductions, opens up export traderoutes for Vietnamese firms, and reduces Vietnam’s dependence on any particularmarket. Despite this, competition within domestic markets will also arise,according to Doanh.
Under the terms of the agreement, prevention of corruption will be important,while less discrimination and exploitation in the work environment will berequired.
Doanh noted that Vietnamese firms would also have to pay more attention tocertain factors.
To be eligible for tax exemption, for example, Vietnamese goods must followrules of origin whereby a certain ratio of goods’ materials or processing mustoriginate from CPTPP countries.
Firms have been urged to carefully study the rules to ensure that their goodswill be eligible.
Vietnamese firms will also have to satisfy technical barriers to trade such asquality specification, consumer safety standards, labour and socialresponsibility regulations and environmental protection standards.
Many agricultural goods and seafood firms struggle with technical barriers likefood safety violations, so they need to work on brand building and improvingproduction processes to adhere to the regulations.
In addition, firms will need to adhere to worker rights’ regulations such as nochild labour and no discrimination, intellectual property rights, consumerrights protection and fair competition regulations.
Clarity and fairness in solving disputes are also required.
Many small- and medium-sized firms have limited understanding of free tradeagreements and exporting regulations, according to the Association of Small-and Medium-Sized Enterprises in the South.
The association said it would work on organising more trade facilitationevents, help firms acquire funding, and offer more consultancy and trainingprogrammes.
Thai Nhu Hiep, Chairman of Vinh Hiep Co. Ltd, which specialises in coffee andpepper, said that administrative procedures regarding internationalcertifications for exports were problematic for many firms.
To take advantage of trade opportunities, businesses should network, study theCPTPP regulations carefully, and make sure they can qualify for tax exemptions.
The conference was held by the Association of Small- and Medium-SizedEnterprises in the South.-VNS/VNA
Vietnam’s participation in the CPTPP demonstrates the spirit of cooperation andintegration, especially in light of the rising trend of protectionism aroundthe world, Dr. Le Dang Doanh, a member of the United Nations’ Committee forDevelopment Policy, said.
The CPTPP includes 11 economies that are highly supportive of Vietnam’s economyand account for 13.4 percent of global GDP.
The trade agreement promises strong tax reductions, opens up export traderoutes for Vietnamese firms, and reduces Vietnam’s dependence on any particularmarket. Despite this, competition within domestic markets will also arise,according to Doanh.
Under the terms of the agreement, prevention of corruption will be important,while less discrimination and exploitation in the work environment will berequired.
Doanh noted that Vietnamese firms would also have to pay more attention tocertain factors.
To be eligible for tax exemption, for example, Vietnamese goods must followrules of origin whereby a certain ratio of goods’ materials or processing mustoriginate from CPTPP countries.
Firms have been urged to carefully study the rules to ensure that their goodswill be eligible.
Vietnamese firms will also have to satisfy technical barriers to trade such asquality specification, consumer safety standards, labour and socialresponsibility regulations and environmental protection standards.
Many agricultural goods and seafood firms struggle with technical barriers likefood safety violations, so they need to work on brand building and improvingproduction processes to adhere to the regulations.
In addition, firms will need to adhere to worker rights’ regulations such as nochild labour and no discrimination, intellectual property rights, consumerrights protection and fair competition regulations.
Clarity and fairness in solving disputes are also required.
Many small- and medium-sized firms have limited understanding of free tradeagreements and exporting regulations, according to the Association of Small-and Medium-Sized Enterprises in the South.
The association said it would work on organising more trade facilitationevents, help firms acquire funding, and offer more consultancy and trainingprogrammes.
Thai Nhu Hiep, Chairman of Vinh Hiep Co. Ltd, which specialises in coffee andpepper, said that administrative procedures regarding internationalcertifications for exports were problematic for many firms.
To take advantage of trade opportunities, businesses should network, study theCPTPP regulations carefully, and make sure they can qualify for tax exemptions.
The conference was held by the Association of Small- and Medium-SizedEnterprises in the South.-VNS/VNA
VNA
