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TPP to impact on Vietnam's financial sector

Released at: 16:55, 12/04/2016

TPP to impact on Vietnam's financial sector

The seminar reviews opportunities and challenges to financial sector and Vietnamese enterprises’ business development

Conference hears of opportunities and challenges the TPP will present for the financial sector upon implementation.

by Hong Nhung

A conference entitled “TPP: Opportunities and Challenges for the Financial Sector and Vietnamese Enterprises’ Business Development” was held in Ho Chi Minh City on April 12 by the Multilateral Trade Policy Department at the Ministry of Industry and Trade with joint sponsorship from Vietinbank and the PetroVietnam Fertilizer and Chemicals Corporation.

Participants heard an overview of the TPP agreement, the negotiation and signing process, the impacts on and recommendations for Vietnamese enterprises, the opportunities and challenges for the banking sector, Vietnam’s ability to attract capital, and the TPP’s effect on investment management in Vietnam.

Ms. Vu Minh Chau from the International Cooperation Department (ICD) at the State Bank of Vietnam told the gathering about new facets in the TPP, such as electronic information transfer, management solutions and electronic payment services for card transactions, and, significantly, the Investor - State Dispute Settlement (ISDS) regime.

The ICD recommended that Vietnam, after joining the TPP, should complete legal documents and institutions for banking to ensure the stable development of currency and financial systems and enhance the competitiveness of local financial institutions. Improved assessment, forecasting and research will also create more advantages for Vietnam’s financial organizations in the global market.

Mr. Huynh The Du from the Fullbright Economic Teaching Program pointed to some lessons learned from Vietnam’s integration into the WTO. “Controlling business speculation and the major expectations of the WTO in Vietnam created a real estate bubble, which lead enterprises in the wrong direction,” he noted.

From these lessons some questions can be raised from the current circumstances about how to control expectations of the TPP, he said, as the agreement may lead to booming waves of investment into Vietnam.

Concluding the conference, in the Q&A session speakers answered questions from enterprises on the difficulties in applying for credit and how to make it more approachable for Vietnamese enterprises in the context of the TPP.

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