CPTPP to cause dramatic changes in domestic market in 2019
Updated : Tuesday, January 08, 2019 3:17 PM (GMT+0700)

The domestic market isexpected to see considerable changes in 2019 as the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) becomes effectivefrom January 14, according to market watchers.

Illustrative image - Source: VNA

In 2019, the import tax of agricultural products, milk andwine from CPTPP member countries will be reduced in line with the set roadmap.

From November 14, import taxes applied for grape wine andchampagne from Canada will be reduced from the current 56 percent to 41 percentand 36 percent in early 2020.

Except for Canadian lobster and salmon, Vietnam will eraseall import tax for fisheries products such as frozen crab and fish from Canadaand Australia, while cutting down tax for Canadian salmon from 18 percent tozero percent, and that for Canadian lobster from 35 percent to 15 percent.

Last year, many foreign food businesses, including those fromJapan, Australia and Chile, introduced fresh and processed aquatic products aswell as fruit, children’s food and vegetable to Vietnam to seek distributionchannels.

Le Van May, CEO of Lotus Group, a Japanese nappy, formulamilk and food distributor, said that Japanese firms will continue introducingmore food products to Vietnam to optimize the opportunities in the market.

Nakajima Hayato from Japan’s Middis Inc. said that since2017, the firm has cooperated with three Vietnamese businesses to introduce themilk trademark Bean Stalk to Vietnam. The company will increase the sale of theproduct in Vietnam when the CPTPP takes effects, he said.

Meanwhile, a representative from Oitaken, a Japanese providerof Kosui pears, said that the company will also supply more products toVietnamese consumers.

Seeking measures to improve the quality of domestic products,Nguyen Viet Dung, a National Assembly deputy from Ho Chi Minh City, held thatinvestment to agriculture should be carefully calculated as similar productsfrom CPTPP markets are very competitive.

He stressed the need to develop large-scale production facilitiesto help the application of technology, thus enhancing the competitiveness ofdomestic products.

Trinh Quoc Dung, Executive Director of Vinamilk group saidthat if Vietnamese firms do not makecare ful preparations, they will lose rightin the domestic market.

In the context of strong competition from foreign firms,restructuring themselves to reduce costs and improve the quality of theirproducts is the only way for Vietnamese breeding companies, meat processing andmilk businesses, he stated.

Dung held that products that are internationally competitivein the domestic market will have easier way to foreign markets.

Source: VNA

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