Being active to get “sweet fruits” from the CPTPP

	Utilising FTAs to improve businesses
	Prime Minister approves plan to implement CPTPP
	CPTTP – challenges for Vietnamese businesses

Mr. Ngo Chung Khanh

Can you tell us, what is the level of specific tariff reduction for Vietnam's export goods when CPTPP takes effect?

On average, the first rate of tariff reduction was over 60% and 3 years later is about 80%. Tariff reductions have a roadmap, instead of immediately cutting the entire tariff.

Many opinions said that intellectual property as well as meeting the rules of origin of goods are outstanding challenges for Vietnamese enterprises when implementing CPTPP. What do you think about this?

The content of intellectual property rights in the CPTPP has been reduced compared to the previous Trans-Pacific Strategic Economic Partnership Agreement (TPP), at least more than 10 important obligations have been decreased significantly compared to the TPP. The CPTPP has a number of intellectual property obligations that are higher than the previous Free Trade Agreements (FTAs), but these are the things Vietnam needs to do. The CPTPP has stricter intellectual property regulations but in return, it also protects the legitimate interests of many businesses.

Regarding the origin of goods, this depends on the goods that the CPTPP has separate regulations, for example, cars and auto parts have separate regulations, and are quite complicated. The textile and garment industry has its own regulations and levels. In order to know specific items, we must look at the details of origin to define the conditions an item is required to meet, then take action for compliance and ensure accordingly.

Vietnam has participated in many FTAs and in fact, taking advantage of opportunities from these FTAs by Vietnamese enterprises is still limited. How can we stop this happening with the CPTPP, sir?

About taking advantage of FTAs, Vietnamese enterprises have not fully utilized their potential, primarily because enterprises have not paid attention. Enterprises have not taken the initiative to clearly understand and assess, they do not find out how much a particular product is entitled to preferential tax rates, and how to enjoy such preferential tax rates. With the CPTPP, also, and to take advantage of it, enterprises must increase their activeness. For example, enterprises exporting clothes to Canada, in January, 2019, when the CPTPP takes effect, enterprises must find out whether exported products to Canada market are entitled to preferential tax rates or not. By the current basis and source of imported fabric..., what must businesses do to enjoy such preferential tax rates? Enterprises can contact the negotiating team directly to receive answers. My side is a negotiating delegation but I have hardly received any questions from businesses.

What are the solutions that need to be promoted in the coming time to make the best use of opportunities from CPTPP?

For Vietnam, the most worrying is the implementation problem because time is short. The first thing to do is to urgently propagate, as soon as possible at the local level, so that enterprises are able to take advantage and implement as soon as the agreement takes effect. The second is to quickly build focal points to execute. By joining the World Trade Organization (WTO), Vietnam has experienced this. For example, building focal points at both central and local levels to connect with each other, so that businesses know where to ask about the CPTPP. In addition, in the coming time, the review of legal documents, lots of details need to be done...

Thank you Sir!