HCM City (VNA) – Rubber businessesshould devise sustainable development strategies to maximise opportunitiesgenerated by the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP), experts said at a workshop in Ho Chi Minh City on June 14.

Tran Ngoc Binh, from the Import and ExportDepartment under the Ministry of Industry and Trade, said many opportunitiesand pressures will await the rubber sector after the deal comes into effect.

He explained that natural rubber will enjoyzero percent import duty in member countries of the CPTPP.

“This creates opportunities for Vietnamesenatural rubber to expand the market. However, the domestic rubber sector willhave to face a fierce competition since natural rubber production countrieswill step up exports to Vietnam,” Binh added.

The countries will also completely scraptariffs imposed on rubber products within 16 years, according to the official.

He suggested businesses abide by regulationson product origin in order to utilise tax incentives as committed.

Tran Thi Thuy Hoa, from the Vietnam RubberAssociation (VRA), highlighted the common development trend of the world’srubber sector that commits to sustainable development, with higher productivityand quality.

To bring into full play advantages offeredby the integration process in order to expand the market, the Vietnamese rubbersector should focus on building its brand name, while ensuring quality,prestige and sustainable development, she said.

The official said local firms can promotetheir prestige by observing laws and policies towards labourers, and performtheir social responsibility.

She also proposed rubber associationsintensify the public-private partnership (PPP) in management to look towardssustainable development.

Vietnamcurrently ranks third globally in natural rubber production and export,according to the VRA.

The association revealed that in 2017, thecountry earned 2.3 billion USD from export of 1.4 million tonnes of naturalrubber, up 36 percent in value and 11.4 percent in volume year on year.

The Vietnam Rubber Group alone produced over250,000 tonnes of rubber latex and earned revenue of 21.38 trillion VND (936million USD), exceeding the plan by 20 percent. Its pre-tax profit reached over4.1 trillion VND (179.58 million USD), surpassing the yearly plan by 36percent. The firm contributed 1.7 trillion VND (74.46 million USD) to the Statebudget in the year, while paying its employees about 7.1 million VND (310 USD)each per month averagely.

The original Trans-PacificPartnership (TPP) was signed by 12 countries in February 2016 but US PresidentDonald Trump pulled his country from the deal upon his inauguration in January2017. 

The remaining 11 countries, namely Australia,Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singaporeand Vietnam, signed the pact and renamed it the CPTPP in March 2018 in Chile. -VNA