TPP – opportunities should be taken

This is the general opinion that enterprises have givenin the face of Trans Pacific Partnership (TPP) is achieved with Vietnam on October 5.

·        Mr. Nguyen Van Le, Deputy Chair of Vietnamese Shoes Association and General Director of Dong Hung Shoes Company in Di An Town:

Cooperation will be made to produce auxiliary industrial products

From the end of 2014, we have gained our purchase orders for the end of 2015; as for this year, all purchase orders have been fixed for the end of Q3 of 2016. The market has its good signs as exporting purchase orders constantly change from China and Taiwan to Vietnam, offer advantages to shoes-making industry in Binh Duong Province. The advantageous development was thanks to the effects of Vietname presence in TPP which will bring up practical and larger benefits as well as great challenges.

In the face of this, Binh Duong Provincial Shoes-making Association and Dong Hung Company have made agreements and have general voices in setting up a factory of auxiliary materials to be supplied to and service member enterprises. It is expected that the factory will be put into use by the end of 2016.

Besides, to help member enterprises to be more active in seeking markets for their products and promote their exportation on TPP, Binh Duong Provincial Shoes-making Association will organize meetings and events of seeking cooperation opportunities with domestic and foreign partners.

Enterprises in Binh Duong Province should make use of the opportunities and drive back challenges to be successful with TPP. In this photo: Production operations are on-going at Binh Duong One-member Garments Co. Ltd.

·        Mr. Le Hong Phoa, President of Binh Duong Provincial Association of Textile and Director of Binh Duong One-member Garment Co. Ltd.:

TPP opens up opportunities for textile and garments

Member nations of TPP have fulfilled negiotiations to open up opportunities for textile and garments of Binh Duong in particular and Vietnam in general by offering preferential taxes to facilitate market share expansion of enterprises on exporting textile products and garments to the US as the exporting tax is declining towards 0%. Besides, if the auxiliary industries for textile can catch up the practical needs, textile industry will be promoted as more purchase orders have been oriented to Vietnam.

However, TPP also opens up challenges to enterprises as we are mainly importing materials. Besides, enterprises will bear more cost as labor payments increase while their skills are lack and increasing social expenses.

To make use of the opportunities brought about by TPP, for the time to come, the enterprises should concentrate on indepth development with capacity increase by rational investments into modern technologies which can assure them of production and quality to compete in the markets.

·        Mr. Pham Van Xo, the President of Binh Duong Provincial Association of Exportation:

The employees should improve their skills

TPP is accounted for 40% of the world GDP. On approval, it will promote strong growth of Vietnam, especially the growth of exportation into the US and Japan. Those are the nations becoming major exportation targets of Vietnam.

Certain drawbacks remain on TPP approval. Currently, commodity quality of Vietnam is still low and not so sophisticated as products of developed economies, making Vietnamese commodities lose their positions. This requires enterprises to enhance their market competition. In the meantime, the State should reduce various taxes against importing Vietnamese commodities, causing budget reduction…

To catch the opportunities brought about by TPP, enterprises should be more rational in production of well mastered products of textile, shoes, and wood… while being accessible to materials without depending on foreign resources. The State and enterprises should make greater investments to improve human resources to meet the demands of the enterprises and the society.

·        Mr. Nguyen Van Hung, Deputy President of Binh Duong Provincial Association of Electromechanics:

Enterprises should sustain internal forces

Global integration is inevitable. Thus, in the first negotiation rounds of TPP, we are determined that TPP will be signed and applaused by Vietnamese enterprise community. TPP increase internal importation and exportation, opening up opportunities for both investors and Vietnamese enterprises.

To catch up, enterprises should sustain their internal forces by enhanced labor. Certainly, TPP brings about great opportunities for Vietnam.

Reported by P.An – K.Vinh – Translated by Vi Bao