Exports to CPTPP rise 22.5%

This was said by Deputy Minister of Industry and Trade Tran Quoc Khanh at the Vietnam Private Sector Economic Forum held on May 2nd to offer suggestions for enterprises to effectively utilize the CPTPP agreement.

He stressed that among about 500 origin licenses issued by the ministry to enjoy tax incentives for products exported to CPTPP in the first quarter of the year, 90% of Vietnamese commodities were shipped to Canada and Mexico. This showed that the CPTPP market is opening opportunities and great potential for Vietnam’s exports.

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CPTPP, in which 11 countries are participating, has come into effect. Vietnamese companies will have 78-95% of tariff lines removed as they export goods that the country has advantages in, such as furniture, footwear, textiles, and seafood to the market.

However, the most difficult issues facing enterprises is that, in order to enjoy the tax rate, exported products must meet the rules of origin of goods of CPTPP. Specifically, export products must have CPTPP internal origin to be exempt from taxes, while materials for production of Vietnamese goods are mainly imported from countries outside CPTPP like China and the Republic of Korea.

Establishing domestic sourcing of raw materials, such as cotton and fiber, is a very difficult problem which enterprises and representatives of functional ministries cannot give quick solutions for.

Meanwhile, enterprises said that another major difficulty is environmental concern with the development of textile and dyeing factories, because the Law on Environmental Protection of Vietnam is very strict./.