Hanoi (VNA) – Many domestic businesses expect the newly signed CPTPP will bringpositive effects on Vietnam through the expansion of export market along withaccess to the abundant materials sources in CPTPP member countries.

Nguyen Van Sua, ViceChairman of the Vietnam Steel Association, was of the view that both TPP andCPTPP would have positive impacts on the domestic steel industry rather thannegative ones.

He explained thatseveral CPTPP members import large volumes of steel products, and the removalof tariff barriers will help Vietnamese steel exporters extend their markets.At the same time, some CPTPP member countries, for example Australia,  have abundant sources of materials needed bythe steel industry such as iron ore and coal, which will give Vietnam easieraccess to materials, machinery and technology in the industry.

Sua added thatnegative impacts do exist, though not large, as competition in the steelindustry among CPTPP members is not particularly fierce.

He said in order tooptimise opportunities brought by the CPTPP, domestic steel manufacturersshould carefully study the deal’s content and rules to avoid unnecessary risks,while continuing to increase the content of technology in products along withproductivity and environmental protection.

The mechanicalsector is facing bigger problems as it is at a disadvantage compared to that inother CPTPP members, according to General Secretary of the Vietnam Associationof Mechanical Industry (VAMI) Dao Phan Long.

Long forecast that thereare two directions ahead for the sector, either to continue doing outwork forforeign partners or to enter joint ventures to access technology, managementknow-how and markets. Which direction to take will depend on the Government’sorientation for the sector and the enforcement of ministries, agencies and thebusiness community itself.

He noted that manysmall-sized enterprises face the risk of collapse if they fail to seek linkagesand new markets.

To assist domesticfirms, the government should define concrete development orientations andpriorities for the mechanical sector to help businesses devise their investmentstrategies.

Another sector to beaffected strongly by CPTPP is the garment-textile industry.

Truong Van Cam, vicechairman of the Vietnam Textile and Garment Association (VITAS), said thesector hopes to benefit from the deal, which provides opportunities for Vietnamto reach other markets aside from the US.

He stressed thatincreasing added value will be an effective way for the sector to make the mostof incentives offered by CPTPP.

According to GeneralDirector of the Ho Guom Garment JSC Phi Ngoc Trinh, after the signing of CPTPP,garment-textile firms will have bigger chances to enter the Australian andCanadian markets, but the question is whether they can meet those markets’requirements.-VNA