Vietnamese enterprises agree that preparedness is key to benefitting from the TPP.
“In terms of advantages, besides greater exports from preferential taxes or tax exemptions, the TPP will introduce a wider range of importers and suppliers to Vietnam. Domestic enterprises will be able to access information that can present us with opportunities to cooperate with international partners. The TPP will also give us direct access to customer feedback. Instead of going through intermediaries, Vietnamese businesses will be able to contact customers directly to identify their needs and receive feedback. As a result, Vietnamese enterprises will have a clearer picture of new markets to operate effectively.
However, Vietnamese enterprises will also face fierce competition in the domestic market when foreign investors come in greater numbers under the TPP. In order to compete, Vietnamese enterprises need improve their knowledge of markets and their competitors and develop their production and technology to cut costs and increase quality. Long-term, reliable capital sources should be enhanced to cope with international companies. When joining the TPP, Vietnamese enterprises must have effective corporate governance, with production and business operations based on international standards of accounting and auditing, to attract foreign capital and meet the stringent requirements of foreign investors.”
Mr. Dang Phu An, Head of the Finance Department, Viet Vuong Corporation
“The TPP will bring huge benefits to Vietnam’s economy, especially its exports, from preferential tax rates for example. By joining the TPP Vietnam’s economy is also recognized by other member countries, which may result in lower anti-dumping duties being imposed. But Vietnamese enterprises will face many challenges, such as a fiercely competitive environment. Vietnam’s manufacturing sector will have to compete on equal terms with other member countries with low import tariffs or exemptions. The services industry and investment must open up under the TPP.
Vietnam’s small and medium-sized enterprises (SMEs) remain weak in financial resources and management while their relationships with international partners are still loose. To survive in a competitive environment I think businesses need to adopt effective management processes, seek opportunities, and build strong relationships with foreign investors. Enterprises should also look to raise capital for their business and production development. The government has an important role to play in the development of enterprises. Support policies need to be transparent and specific to each type of enterprise, so SMEs can have the opportunity to access incentive funds and a good legal framework, to be able to conduct business in a competitive environment.”
Mr. Vu Thanh Thuan, General Director, HalongSky Consulting & Technology
“When the TPP is signed it will enhance trade turnover between Vietnam and its TPP partners. The demand for transport and logistics among Vietnam and its eleven partners in Asia Pacific will therefore see significant growth.
Avina Logistics as well as the other companies in the logistics field will have more opportunities to increase goods capacity and export-import markets. Competition will be fierce, however, requiring Vietnamese logistics companies improve their quality to overcome the international and regional competition.
To seize the tremendous opportunities and ease the challenges, we have been preparing for the upcoming TPP. Improving our capacity and the quality of our employees and technology and actively taking part in international logistics networks are three matters we have focused on in our preparations.
Avina and other logistics operators in Vietnam are also making a significant effort to strengthen links and ensure effective and stable cooperation, to create broad and deep value chains. If these efforts are successful, Vietnamese logistics companies can be competitive with their regional and international counterparts. Working together will make them more active in the fight for a greater role in transporting exported and imported goods.”
Ms. Le Hoang Oanh, Deputy General Director, Avina Logistics JSC
“Any enterprise that wants to succeed must understand the opportunities and challenges as markets open up. The TPP will bring new technology to Vietnam as well as make major changes to the economy. So if enterprises can access and adapt to the new environment I believe they can be very successful.
I can easily get access to information on new technology or products, for example. But I don’t know if I can find information on the competitiveness of our goods, on human resources, and on management ability. The TPP presents potential but will be a difficult playground for my enterprise as well as other Vietnamese enterprises.
Any enterprise who wants to be stable in the market must stay up to date, especially in technology. We manage everything with digital technology, such as SEO marketing. In the TPP, I see so much change ahead of us and it will take time for us to adapt. But I am ready to look for and bring new things to the Vietnamese market.”
Mr. Nguyen Thanh Duc, Marketing Director, Viet My Construction Materials Technology Joint Stock Company
“Vietnamese enterprises lack business knowledge, such as in marketing and production. They need information technology (IT) support because I think that this is the fastest way for them to reap the benefits of the TPP.
There have been many IT projects for Vietnamese enterprises but their involvement has been low. Many organizations and sponsors have projects supporting Vietnamese startups, but very few of those who really need the knowledge can access these projects.
Researching markets and brand development are matters Vietnamese enterprises have trouble with and this will continue when the TPP comes along. Many enterprises have really good products, even meeting the high standards imposed by strict markets such as Japan, but without marketing knowledge they are in a difficult situation.
Ms. Dang Thi Thoa, Deputy Director, Investment Center for the Development of Small and Medium Enterprises under the Vietnam Association of Small and Medium Enterprises