Vietnamese businesses are currently exploiting the incentives of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership relatively well. (CPTPP), đặc biệt ở khu vực châu Mỹ.

MARKET PROMISES DEVELOPMENT

Free trade agreement (FTA) is a key feature in Vietnam's international economic integration and import-export in recent times. In the last 5 years, Vietnam has signed a series of FTAs, including the CPTPP Agreement, Vietnam – EU FTA (EVFTA), Vietnam – UK FTA (UKVFTA), Regional Comprehensive Economic Partnership Agreement (RCEP). Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) – said, with these agreements, We see a different feature from previous FTAs, that is a deeper level of commitment and broader coverage. Especially in CPTPP, The geographical scope of participating countries is also quite wide. With CPTPP, The participating countries are located on both sides of the Pacific Ocean, In which, in the Asian region, there is Vietnam, Singapore, Malaysia…

Evaluation of the level of utilization of the CPTPP Agreement, Ms. Vo Hong Anh - Deputy Director of European Market Department, America (Ministry of Industry and Trade) – said, There are 4 American countries participating in CPTPP, including Canada, Mexico, Peru, Chile. In there, The 3 countries with which we have FTA relations for the first time are Canada, Mexico, Peru; Chile alone has a bilateral FTA. Since the CPTPP Agreement took effect for Vietnam in January 2019, We have witnessed a leap in growth of Vietnam's export goods to CPTPP member countries, Especially in the Americas region, there has been strong growth. Like, Exports to Canada in 2021 reached 5,3 billion USD, increase 20,8% compared to 2020 and an increase of 75% compared to the time before the Agreement took effect. Or as for Mexico, 2021, Exports to this market have made a leap, reached 4,6 billion USD, growth of over 100% compared to the time before the Agreement took effect. Vietnamese businesses are currently exploiting the incentives of the CPTPP Agreement relatively well.

In terms of the structure of Vietnam's export products to CPTPP member markets, Leading the way is phones and components, accounting for 20%.; Next is the computer, device, Electronic products account for 16% and machinery, equipment and spare parts 9%; Textiles and garments account for 10% and footwear accounts for 7%.. Particularly these two items, thanks to the CPTPP Agreement, Exporting businesses already have a 10-20% tariff advantage over our direct competitors.. According to Ms. Vo Hong Anh, Businesses should take full advantage of these preferential tariff advantages.

Another strong export product is seafood. For seafood, Most CPTPP members have committed to reducing tariffs to 0% within 0-3 years. Presently, The coverage of Vietnamese seafood products in markets is increasing significantly. Like the Canadian market, Vietnam is the leading heart exporter, accounting for 34% of Canada's total shrimp import value; or catfish, Mexico is the hot growth market for Vietnamese pangasius. Mexico is the country that imports the most Vietnamese pangasius among CPTPP member countries.

Besides, thanks to preferential tariffs, Currently, Vietnam has become one of the 5 largest exporters of wooden furniture in the Canadian market. However with Mexico and Chile, The market share of Vietnamese wooden furniture is still relatively small, only about 1%, so the room for development of this product is still large.. besides, Vietnam also has strengths in exporting handbags, va li, umbrellas and agricultural products such as tea, cashew, coffee, pepper…

Evaluate markets under CPTPP, Associate Professor, Dr. Luong Duc Long - General Secretary of the Vietnam Cement Association - also said that, A promising market for development could be Chile, Mexico and Peru, but the difficulty for these markets is transportation, due to the very remote location.

Besides, Americas region, especially North American countries like the United States, Canada requires relatively strict requirements for product quality, in the production process as social responsibility, environmental responsibility, labor standards... In addition, Businesses also face language barriers as they mainly use Spanish in business, communicate. Opposite, the level of awareness of import enterprises in this market area regarding scale, Vietnam's product quality and production capacity are still not high.

LEVERAGING ECONOMIC LINKAGES TO EXPAND MARKET

Besides, We can consider taking advantage of the commercial infrastructure system in CPTPP countries to increase our presence, as well as gradually bringing our goods into this regional market.

Ms. Vo Hong Anh said that, next time, export enterprises in addition to improving export turnover, we must consider, Focus on adding value to our products through improving product quality, match the criteria, market tastes and requirements; renew, Apply science and technology in the production process. Towards green products, Sustainable development to suit your destination market. “The advice for businesses is to carefully study the market, understand their needs. We don't sell what we have, we have to sell what the market needs" - Ms. Vo Hong Anh shared and said, with FTA network coverage, So widespread, we can take advantage of these economic links to bring goods into the broader markets of the Americas.. Notable like Canada, Mexico participates in the USMCA Agreement with the United States, or Chile, Mexico has FTAs ​​with most countries in Latin America.

Not only that, Businesses can consider the possibility of production cooperation with CPTPP member countries. For example, export raw materials or raw processed products to this market and then cooperate in joint venture production, machining, processed into finished products and continued to export to partner markets with which these countries have FTAs, with the condition that the rules of origin are met on the basis of taking advantage of the cumulative rules of origin. Thereby taking advantage of tax incentives to export to third countries.

Besides, We can consider taking advantage of the commercial infrastructure system in CPTPP countries to increase our presence, as well as gradually bringing our goods into this regional market. For example, in North America there is the Walmart distribution system, Costco... or Fallabella retail system, Sodimac, Cencosud in Latin America.

Besides, logistics, Transportation is also an obstacle for Vietnamese goods to reach the American market. Ms. Vo Hong Anh also suggested, Businesses can consider taking advantage of the logistics infrastructure of CPTPP member countries to export goods. Canada has a very developed domestic railway system, with the largest transit volume in the region. From this Canadian railway system, our goods can reach other cities in the United States, Mexico and also South American countries.

Or export goods to Chile through the Iquique regional logistics center... From here there will be a road transport route to link with Argentina's larger market area of ​​about 200 million people., Brazil, Peru…

“This is also a direction that we can suggest for businesses to consider, Take advantage of all connections, as well as infrastructure to export to the Americas region"– Ms. Vo Hong Anh emphasized.

Source: Ministry of Industry and Trade – Author: Tue Minh