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  • VINACAS: Evaluate the advantages and disadvantages of this sector when Vietnam joins the TPP

    Oct 9th, 2015

    With events successfully concluded negotiations of economic partnership agreements across the Pacific (TPP) history between countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam , Americans on 5/10/2015, we have received some comments of business sector. There is concern for agricultural products from the countries in the bloc will overflow into Vietnam affect domestic markets when tariffs are gradually being removed; Besides the foreign companies have strong economic potential investment into Vietnam will compete with Vietnam main business at home. In this context, President VINACAS have the following opinions:

    Currently cashew processing is still mainly exports primary, domestic consumption remains low. Forecasts this year Vietnam may export 320 thousand tons of cashew nuts (respectively 95% of the total cashew processing) with exports of about $ 2.5 billion; domestic individual consumption by 5%. Thus ended the TPP negotiations can therefore say is a good sign for the sector's export processing conditions present stage, especially the countries participating in the TPP has accounted for over 50% of total export value of the whole industry in which the US market is the largest exporter of Vietnam thing (over 30% of total exports), Singapore (10%), Australia (7%), Canada (5%), ....

    The issue of concern is that we must have innovative solutions to help increase the quality and yield of raw materials in the country for some exports if domestic origin of raw materials producers will be fully enjoy the preferential policies of the blocks, particularly on tax, import tax (0%). Known today of raw materials for processing export of Vietnam only meet about 50% of the processing capacity.

    For this sector, the participation in the TPP so for now is only beneficial, not harmful. However, for the agricultural sector, other foods that market in large consuming countries, the competitiveness of Vietnam is still low (meat, milk, ...) then joined the TPP, businesses also need time to adapt, these safeguards should be considered and applied but must comply with international law and must be very professional on the basis of the proposal of the business and industry organizations , Associations. Therefore, the role of social and professional organizations need to be elevated. Union officials must have lawyers really knowledgeable about areas of expertise, the international trade law and TPP. In the long term, the state should concern investors, improve competitiveness for businesses and associations. For enterprises that support credit - tax - land and technology. For the Association simply create favorable conditions for developing associations and support training and capacity building for the Association, the promotion programs, ... If such association would definitely be " extended arm "good support for joining the TPP State.


    Source: www.vinacas.com