This morning in Ho Chi Minh City, KPMG Vietnam, together with Vietnam Chamber of Commerce & Industry Ho Chi Minh City Branch (“VCCI HCM”) and Ho Chi Minh Stock Exchange (“HOSE”) successfully organized a seminar titled: “TPP Dialogue – Envisioned Growth Opportunities for Businesses in Vietnam”
The event attracted participation of representatives from more than 30 local and international business associations, 200 FDI’s, local businesses, and authority offices. Among the special guests in attendance at the seminar was Mr. Tran Quoc Khanh – Deputy Minister of The Ministry of Industry & Trade cum Head of Vietnam’s TPP Delegation – who was the keynote speaker. The seminar provided participants with a comprehensive overview about the Trans-Pacific Partnership agreement (“TPP”), the potential impacts this long-sought agreement imposes on the business environment, the opportunities and challenges for businesses in Vietnam.
Mr. Tran Dac Sinh, Chairman of the Board of Directors of HOSE, commented that HOSE expected TPP to make positive impacts on the stock market. As the economy is developed, the quality of goods listed on the stock market will be significantly improved, not only to the stocks of the beneficiary sectors such as textiles, footwear and fisheries, but also resonate to other supporting industries. Indirect foreign investments to Vietnam will be highly increased, motivating the market to grow.
Also in attendance at the high profile seminar was Mr. Warrick Cleine – Chairman and CEO of KPMG in Vietnam and Cambodia. Mr. Cleine said: “2016 would be a milestone for the Vietnam economic landscape. TPP and the other international agreements such as the EVFTA and the integration into the AEC will create numerous benefits for businesses in Vietnam as they will have the opportunity to expand into other markets, including important markets like the US, Japan, Australia…” However, he added: “It also increases competition across all areas, from labour, capital and funds… to real estate and other resources. Only those that are truly well prepared would likely be successful”.
“Through today’s co-organized seminar, we hope to foster an environment for business leaders, associations and authorities to openly discuss about the TPP. From that, they can review their strategies to maximize the potential benefits of TPP for their businesses and for the society.” – said Mr. Tran Ngoc Liem, Vice Director of VCCI-HCM.
Vietnam officially joined the TPP on 4 February 2016 after 5 years of negotiations. With 12 signing countries, the agreement has set the stage for what will become the world’s largest trading bloc with over 800 million people (11.2% of the world’s population), contributing 40% of the world’s GDP and 30% of the world’s total revenue from international trading activities. Expected to come into effect from 2018 onwards, TPP will open up additional opportunities directly for trading, manufacturing, import and export businesses in Vietnam.