Can Tho (VNA) – A seminar was held in Can Tho cityon July 25 to help enterprises in the Mekong Delta seize opportunities from theComprehensive Partnership and Trans-Pacific Partnership (CPTPP) trade agreementand take advantage of the vast Chinese market.
Attending the event, hosted by the Vietnam Chamber of Industryand Commerce’s branch in Can Tho (VCCI Can Tho), were leaders from VCCI Can Tho,economic experts, and representatives of the city Departments of Planning andInvestment, and Industry and Trade, as well as associations of enterprises andenterprises from provinces and cities in the region.
The delegates discussed the CPTPP’s impacts on some keyindustries in the Mekong Delta as well as advantages and challenges ofVietnamese products exported to Chinese market.
Phung Thi Lan Phuong, head of the FTA Division of the WTO andIntegration Centre of the VCCI, said the CPTPP was viewed as a better optionfor Vietnam and its 10 other member countries, following the US withdrawal fromthe former Trans Pacific Partnership (TPP).
She said the CPTPP would enable Vietnam to sign three newfree trade agreements (FTA) with Canada, Mexico, Peru and seven upgraded FTAswith other members.
The CPTPP brings benefits from reduced tariffs, which couldincrease Vietnam’s GDP by 1.1 percent annually. Though this number is less thanone-sixth of the same benefits the former TPP had promised, the CPTPP may helpboost the country’s institutional economic reform, she said.
She also said, however, it would be a challenge for theVietnamese business community to take full advantage of the CPTPP.
The task of implementing the deal is of great importance fordomestic enterprises.
Economic growth dynamics in Vietnam Nam are still lackingbecause of low labour productivity and over-dependence on the world economy andthe foreign-invested sector, according to Phuong.
The country must improve productivity and administration, anddemonstrate an overall commitment to the free trade conditions of theagreement, she said.
On March 8, 2018, Vietnam and 10 other economies signed theCPTPP. If six countries approve it by the end of 2018, the CPTPP will come intoeffect in 2019.
CPTPP, also known as TPP-11, is an open free trade agreement(FTA) whereby countries can join after the agreement enters into force if theyaccept its standards and member countries agree.
The 11 signatories to the CPTPP include Australia, Brunei,Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore andVietnam.
Also at the event, results of a survey conducted by VCCI CanTho were released, showing that most enterprises in the Mekong Delta areoptimistic about their business prospects in the second half of the year.
Nguyen Phuong Lam, Deputy Director of VCCI Can Tho, said according to thesurvey of 62 companies in the Mekong Delta conducted by the VCCI, more than 83percent of businesses said they had stable business production in the firsthalf of the year.
Of the figure, 41.9 percent of the enterprises said businessresults had been better during this time; 45.2 percent said they had stayed thesame; and 12.9 percent said it had been worse than the same period last year.
More than 90 percent of businesses said that business resultswould be better in the second half of the year, while 9.7 percent said it wouldbe worse.
According to the survey, 80 percent of the enterprises planto keep their current production scale, while 20 percent will expand productionin the second half.
In the second half of the year, 30 percent of businesses saidthey would increase their sales by around 25 percent or less (mainly seafood,rice and garment makers), while 14 percent said they would increase sales bymore than 25 percent.
Ten percent of businesses said their profits would remainunchanged; 34 percent said their profits would increase; and 14 percent saidtheir profits would decrease, according to the survey.
Most of the companies said they had experienced somedifficulties because of fluctuating prices of materials, as they are dependenton imported raw materials. Meanwhile, fishery enterprises said theyfaced difficulties in consumption.
In the first half of the year, the region’s export turnover reached 8.2 billionUSD, a year-on-year increase of 1.45 billion USD. The figure is expected to hit17 billion USD by the end of the year.-VNA
VNA