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72% of enterprises in favor of TPP

Released at: 17:39, 22/06/2016

72% of enterprises in favor of TPP

Photo: Duc Anh

Increasing numbers of Vietnamese enterprises understand the agreement and are in favor of its ratification.

by Tuyet Minh

Knowledge about the TPP is on the rise and so is the positive perception of the agreement among enterprises in Vietnam, with 72 per cent in favor last year, up from 62 per cent in 2014, according to a survey by the Vietnam Chamber of Commerce and Industry (VCCI).

Ms. Nguyen Thi Thu Trang, Director of the WTO Center at the VCCI, said that number is already healthy and increasing and indicates that enterprises welcome the agreement. This, she said, is cause for optimism.

According to the survey report, by the end of 2015 77 per cent of local respondents fully understood the TPP, as did 86 per cent of foreign enterprises in Vietnam from TPP member countries. The ratio of Vietnamese enterprises understanding the TPP was actually less than those from non-TPP member countries, where 82 per cent of respondents said they understood the agreement.

Domestic enterprises were most in favor of the TPP, with 73 per cent, compared to 67 per cent of foreign enterprises from TPP member countries and 65 per cent of respondents from non-TPP member countries.

The report also revealed a decline in favorable perceptions among domestic enterprises regarding the four factors of opening up markets, investment, workers, and State-owned enterprises. Domestic enterprises that focus on the domestic market recorded the sharpest decline because they will be negatively impacted by the agreement.

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), in the first five months of this year newly-registered FDI and additional capital reached $10.159 billion, up 136.4 per cent year-on-year.

As at May 20 there were 907 newly-registered FDI projects with total capital of $7.56 billion, a 155.9 per cent increase year-on-year. Investment capital was added by 425 projects, totaling $2.59 billion, up 93.3 per cent year-on-year.

Manufacturing and processing attracted the most FDI, with 398 newly-registered projects. Total newly-invested capital and additional capital in the sector reached $6.61 billion, accounting for 65.1 per cent of all FDI in Vietnam in the first five months.

Among the 60 countries and territories with investment projects in Vietnam, South Korea led the way with total investment of $3.42 billion, accounting for 33.7 per cent of the total.

Exports by foreign enterprises (including crude oil) in the first five months were $48.264 billion, up 7.7 per cent and accounting 71.28 per cent of Vietnam’s export turnover. A trade surplus of $9.108 billion was recorded during the period.

Figures from the General Statistics Office (GSO) showed that in the first five months there were 44,740 newly-established enterprises while 28,582 enterprises suspended operations.

The number of newly-established enterprises increased 24.1 per cent and their registered capital of VND349 trillion ($15.58 billion) was 59.3 per cent higher than in the first five months of last year. Registered capital per enterprise averaged VND7.8 billion ($347,800), a 28.5 per cent increase year-on-year.

Of the 28,582 enterprises that suspended operations (which was 25.9 per cent higher year-on-year), 10,794 nominated an intended day of returning to operations while 17,788 could not determine when they would re-open.   

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