The Trans-Pacific Partnership (TPP) is expected to have great impact on the business activities of all sectors and enterprises as well as social life in general, an official from the Vietnam Chamber of Commerce and Industry (VCCI) said.
However, whether the impact will be positive or negative depends on the final outcome of the negotiations, said Tran Huu Huynh, Director of VCCI Legal Department at a seminar themed “Trans-Pacific Partnership and its meaning to businesses” held in Hanoi on May 23.
Huynh said the negotiations, which cover a broad range of areas, represented Vietnam’s most important free trade talks at present.
Garments and textiles remain Vietnam’s leading export items to the US, Huynh said, adding that Vietnam has to pay nearly 1 billion USD in import tax to the US each year.
Therefore, once the TPP is signed, together with tax exemptions, the country’s garment and textile export could gain great benefits, he said.
However, there is no certainty that the benefits will come to fruition as the US has made strict demands on product origin, he said.
Regarding labour issues, Nguyen Kim Phuong, Deputy Head of the International Cooperation Department under the Ministry of Labour, War Invalid and Social Affairs, said the combination of labour standards with trade offers both challenges and opportunities.
He suggested businesses take initiative in putting forward measures to ensure they will be able to comply with TPP-related commitments.
In November, 2010, Vietnam officially joined TPP negotiations with eight other countries.
The countries have conducted a total of 12 official rounds of negotiations and are making efforts to speed up negotiations to promptly reach the set targets.