On May 11, at a workshop on the Trans-Pacific Partnership (TPP) agreement, a business leader said that TPP will open up great trade and investment opportunities for Vietnamese and Australian businesses.
Deputy Chairman of the city’s Union of Business Associations (HUBA) Pham Ngoc Hung said Vietnam is currently benefiting from a preferential tariff scheme which Australia applies for ASEAN member countries under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). However, when the TPP officially comes into effect, Vietnamese businesses will enjoy greater favourable conditions in accessing the Australian market, he added.
A representative from Australia’s Victoria State authorities said Vietnamese businesses can invest in some of the state’s potential areas such as construction-real estate, finance, and beauty care service. He noted local authorities will also provide special supporting programmes and treatments when Vietnamese businesses invest in certain sectors, such as pharmaceuticals and pharmaceutical equipment, green energy, international education, and food.
According to the Vietnam Trade Office in Australia, export turnover of the Southeast Asian country to Australia is modest compared to the Australian market’s demands. Bilateral trade between the two countries reached 1.2 billion USD in the first quarter of this year, of which Vietnam shipped 635 million USD worth of goods to Australia and spent more than 560 million USD on Australian goods.
Hanoi-based World Bank economist Sandeep Mahajan said the TPP marks a major plus for Vietnam’s economy and is set to add a cumulative 8 percent to gross domestic product (GDP) by 2030. The question is how much benefit that Vietnam could achieve from the trade pact, not whether they can derive benefit, he told AAP. Meanwhile, charge d’Affaires at the Australian Embassy in Hanoi Layton Pike, said the TPP will boost two-way trade, which is already valued at more than 8 billion AUD (5.8 billion USD) annually.
Particularly, the pact will enable Australian investors to make inroad into Vietnam ’s education market, currently Australia ’s third largest. Australian agricultural producers are also looking to increase market share in Vietnam, triggering concerns that Vietnamese farmers could lose out to more efficient Australian producers.
Brian O’Reilly, President of Australian Chamber of Commerce in Vietnam, said Vietnam offers potential for Australian investors seeking access to markets in other ASEAN countries. He said: “ASEAN is the place where you can establish in one country (Vietnam) with the TPP in place, and grow into the rest of the ASEAN community”.
Source: http://hanoitimes.com.vn-Tuan Minh
Keyword : TPP, helps to enhance, Vietnam-Australia business ties.
