For­eign firms ex­pect that the Trans-Pa­cific Part­ner­ship, which is cur­rently be­ing ne­go­ti­ated, will serve them well.

Viet Nam News - - Front Page - Quýnh Hoa

HCM CITY - — A pro­posed trade deal be­tween sev­eral Pa­cific rim coun­tries is ex­pected to ben­e­fit for­eign busi­nesses based in Vieät Nam, whether or not they are from mem­ber coun­tries.

The news was re­leased at a fo­rum or­gan­ised by the Amer­i­can Cham­ber of Com­merce (AmCham) in HCM City last Fri­day.

The Trans-Pa­cific Part­ner­ship (TPP), which is be­ing ne­go­ti­ated, would make it eas­ier to find part­ners once the tar­iffs are cut by the mem­bers, Josephine Yei, a rep­re­sen­ta­tive of the Malaysia Busi­ness Cham­ber, said.

Vieät Nam’s ma­jor ex­port items like gar­ment, seafood, and pro­cessed ma­te­ri­als would meet fewer bar­ri­ers and Malaysian busi­nesses in th­ese in­dus­tries would ben­e­fit from the TPP, she said.

The ad­mis­sion to the TPP would re­quire Viet­namese au­thor­i­ties to im­prove the coun­try’s le­gal frame­work, which would en­able Malaysian busi­nesses to gain bet­ter pro­tec­tion and ac­cess to proper chan­nels for han­dling trade dis­putes and ar­bi­tra­tion, she added.

But Malaysian busi­nesses would still have some con­cerns since un­der the trade deal work­ers would have the right to set up unions and ne­go­ti­ate the pro­vi­sions of their labour con­tracts with em­ploy­ers.

In a coun­try they find at­trac­tive be­cause of the “easy ac­cess” to labour, they fear this could make things harder for them in the fu­ture, ac­cord­ing to Yei.

Con­sid­er­ing the po­ten­tial of the TPP, there should be more FDI com­ing into Vieät Nam in the com­ing years, ac­cord­ing to Chen Hs­inMing, chair­man of the Coun­cil of Tai­wanese Cham­ber.

For in­stance, his or­gan­i­sa­tion has no­ticed that some Tai­wanese in­vestors in the tex­tile in­dus­try plan to enlarge pro­duc­tion in Vieät Nam.

“We have no­ticed some large in­vestors con­duct­ing com­pre­hen­sive fea­si­bil­ity stud­ies for in­vest- ment in this coun­try. “They are look­ing at en­hanced mar­ket ac­cess op­por­tu­ni­ties once tar­iff elim­i­na­tion or re­duc­tion un­der the TPP is in ef­fect.”

Tai­wan is the sec­ond largest in­vestor in Vieät Nam with over US $27 bil­lion in more than 2,230 projects.

Antony Nezic, vice pres­i­dent of the Cana­dian Cham­ber of Com­merce, said the TPP of­fers an op­por­tu­nity to ad­vance Cana­dian in­ter­ests in the Asia-Pa­cific, which is one of the fastest-grow­ing re­gions in the world and a key driver of the global econ­omy.

It also of­fers Canada a foothold in the bur­geon­ing Asian mar­ket and ac­cess to crit­i­cal Asia-Pa­cific value chains, he said.

Asia is ex­pected to rep­re­sent two-thirds of the world’s mid­dle class by 2030 and 50 per cent of global GDP by 2050.

Junn Huyn Soo of the Korea Cham­ber of Com­merce, who is also the chair­man of the 500-strong Korean Tex­tile and Gar­ment As­so­ci­a­tion here, said: “The essence of the TPP is to pro­vide a win­ning strat­egy for all Pa­cific na­tions.”

The agree­ment would con­trib­ute to Vieät Nam ’ s eco­nomic growth, he said.

Last year the coun­try ex­ported tex­tile and gar­ments worth $15 bil­lion, of which Korean firms ac­counted for around 30 per cent.

Korean tex­tile and gar­ments firms plan to dou­ble their in­vest­ment in Vieät Nam in the short term to avail the great op­por­tu­nity of­fered by the TPP, he re­vealed. —

— VNA/ VNS Photo Danh Lam

Ko­belco-Eco So­lu­tion, a Ja­panese firm, builds a fac­tory in south­ern oàng Nai Prov­ince’s Long c In­dus­trial zone.

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