Investors at VP Securities Corporation's exchange floor. (Photo: VNA)
HCM City (VNA) - The Trans-Pacific Partnership Agreement (TPP) is expected to have a positive influence on the Vietnamese stock market, said Tran Dac Sinh, Chairman of the Ho Chi Minh Stock Exchange (HOSE)’s Board of Directors.
He made the remark during a seminar on opportunities created by the TPP for Vietnamese businesses, which was held on March 17 in Ho Chi Minh City.
Relying on the common development basis, the quality of goods in the stock market will be improved significantly, not only for the sectors that will benefit from the TPP, such as garment, footwear, and aquatic products, but also for supporting industries, said the chairman.
The foreign indirect investment flowing to Vietnam will increased sharply, creating a new driving force for the market, he added.
However, the TPP will also bring difficulties and challenges due to the fact that the stock market is not large enough to absorb enormous quantities of foreign capital and local enterprises will face competitive pressure, according to experts at the seminar.
In order to turn opportunities into benefits, not only enterprises but also management branches should undergo a vigorous change, the experts added.
TheTPP, a free trade agreement between 12 countries - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, was officially signed on February 4 after five years of negotiations.
With a market of more than 800 million people, the 12 TPP participating countries account for nearly 40 percent of the global economy and one third of the world’s trade.
Expected to come into effect in 2018, the deal will open up big opportunities for enterprises operating in trade, production, and export-import activities.-VNA
