Many billion dollar export industries are excited about the CPTPP

The textile industry is one of the sectors that will benefit most from the CPTPP. Photo: Nguyen Thanh.

Positive growth

The textile industry is one of the sectors that will benefit most from the CPTPP. About this issue, Mr. Le Tien Truong, General Director of Vietnam Textile and Garment Group (Vinatex) said: In the coming years, the textile industry determined that without the CPTPP, it would be extremely difficult to maintain the export turnover of $US 3 billion. In contrast, when the CPTPP and the Vietnam - EU Bilateral Trade Agreement (EVFTA) come into effect, Vietnamese textile industry could maintain its growth rate of $US 3-3.5 billion per year.

"The CPTPP has potential markets for the textile industry such as Australia and Canada. These are two large markets for textiles and garments, about $US 10 billion a year, while the export market share of Vietnamese textile industry in these markets is quite modest”, said Mr. Truong.

In addition to the textile industry, the CPTPP also offers significant advantages for the footwear industry. According to Ms. Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO): When the CPTPP agreement comes into effect, the chance for leather and footwear exporters to improve their export proportion in markets such as Chile, Australia, New Zealand, Mexico, Canada, Japan... are quite large. "For example, with Japan, it is now one of the key markets for Vietnam's footwear and handbags exports with an average annual growth rate of 20-35%. If Vietnamese enterprises take advantage of positive terms from the CPTPP, the export growth will be higher. In the Canadian market, when the CPTPP comes into effect, the import duty on leather shoes and bags will be immediately applied at 0%. This is a good opportunity for enterprises to infiltrate this market”, Ms. Xuan said.

Not giving specific quantitative figures for products such as textiles, footwear industries, but about the fishery sector, Mr. Truong Dinh Hoe, Secretary General of Vietnam Association of Seafood Exporters and Producers (VASEP), told a Customs News reporter that the CPTPP brings a lot of benefits for seafood processing and export enterprises. So far, Vietnam seafood has exported pretty much to the 11 countries in the CPTPP. In particular, Japan is the biggest partner. "There is a bilateral Free Trade Agreement (FTA), within the CPTPP, which will facilitate Vietnamese seafoods to better exploit this market. In addition, some other markets in the CPTPP will become better potential markets for Vietnamese seafoods”, Mr. Hoe emphasized.

Reaching the markets outside the CPTPP members

In fact, with the CPTPP, the tariff benefits to promote the export of goods to the CPTPP countries are only a part of the potential. Enterprises also recognize that, an opportunity also comes from being able to join forces to promote exports to extra-regional trade.

In this regard, Mr. Truong Dinh Hoe analyzed: With the high integration, the CPTPP helps parties to intergrate strongly and determines the position of the Asia-Pacific region in the international stage. In addition to promoting intra-regional trade, commodities in the countries participating in the CPTPP can also join forces to export more.

"For example, enterprises import raw materials from other countries in the Agreement, then outsource, use the advantages of processing to export goods to other markets. With regard to the fisheries sector, all export tariffs have been at 0%, so the CPTPP does not bring a benefit from tariffs. It can be said that the CPTPP is a driving force to create opportunities for the fisheries sector to improve, to ensure competitiveness and other related factors. Particularly, there are issues such as food safety, environment, social responsibility... On that basis, the fishery industry have access to big markets, outside the CPTPP”, said Mr. Hoe.

Opportunities are wide open, but how to increase competitiveness and make good use of that? In response to this question, Mr. Le Tien Truong said: The basic solution of the textile industry is still to have good quality, timely delivery and reasonable price. The Vietnam Textile industry does not go in the direction of receiving the lowest price orders that go in the direction of the most reasonable price with the requirement of skills, high technology. To do this, the key is to invest in the right technology, improve productivity not only through the skill of the workers but also through production, management and computerization in administration and automation in each step in the production of the industry.

Importantly, in order to make the best use of the opportunities provided by the CPTPP, state management agencies should quickly raise awareness and popularize specific contents of the CPTPP, so that the associations and enterprises can timely catch up and develop a rational plan.