Enterprises advised to know global trade policy
Updated : Friday, June 08, 2018 9:02 AM (GMT+0700)

Firmsare potentially missing out on key opportunities available beyond theirimmediate borders by focusing on trade policy developments on a regional scale,and showing lack of awareness when it comes to the broader global trade policyenvironment, according to an HSBC report. 

 
For companies in Vietnam, only 31 percent said the EU policy environment has had
a positive impact on their business, while 66 per cent saw no impact -
Photo: tinnhanhchungkhoan.vn

According tothe report, a majority of businesses appear to be ignoring or underminingthe impact of important policies on their operations.

For companies in Vietnam,only 31 percent said the EU policy environment has had a positive impact ontheir business, while 66 percent saw no impact. 

The data was similar for theUS policy environment (31 percent for the EU and 60 percent for the US), thetwo major markets for Vietnam’s exporters. 

Similarly, 74 percent ofrespondents said the North-American Free Trade Agreement (NAFTA) has had noimpact on their business.

A broad lack of awarenessfrom businesses that have major trade and policy initiatives has put them atrisk of missing out on significant international growth opportunities,according to the report.  

Although many firms,especially in the services sector, would consider expanding to new markets togrow their business, many could end up losing their competitive advantage ifthey do not recognise how trade policy is re-shaping the world’s supply chains,and where the best opportunities lie for them in the next few years, accordingto the HSBC report. 

The positive impact ofinitiatives that are ‘closer to home’, however, were more broadly recognised bythe survey’s respondents.

China’s Belt and RoadInitiative and ASEAN 2025 policies received the greatest vote of confidencefrom business leaders, 59 percent and 56 percent, respectively, in theAsia-Pacific region. 

Seventy-four percent ofcompanies in Vietnam said that ASEAN 2025 would have a positive impact on theirbusiness and 26 percent saw no impact. 

In addition, 50 percent ofsurvey participants in Vietnam said the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP) was relevant to their business.

Sixty-three percent ofVietnamese companies cited CPTPP as having a positive impact on their business,while 35 percent said there had been no impact. 

Meanwhile, 46 percent offirms in Asia-Pacific said the CPTPP trade deal was relevant for them and 48percent expected it to have a positive impact on their business.

Vu Tien Loc, Chairman of theVietnam Chamber of Commerce and Industry (VCCI), said at a recent meeting thatthe CPTPP would be the backbone of international economic and trade commitmentsfor Vietnamese businesses, despite some changes from its predecessor, thenow-defunct Trans-Pacific Partnership (TPP) agreement.

The CPTPP is considered abetter option for Vietnam and 10 other partner countries, after the USdeparture from the TPP, he noted. 

Conducted by HSBC CommercialBanking, the report examined sentiment and expectations towards internationaltrade in 26 countries and territories, including Vietnam, China, Hong Kong,India, the UAE, the UK and the US, among others.

Source:VNA

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