At a conference, themed, “The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Opportunities and challenges for Vietnamese enterprises,” held by the HCMC Department of Industry and Trade in collaboration with the Ministries of Industry-Trade and Finance and the HCMC International Integration Support Center in HCMC today, October 25, Thuy said the deal proves that the Vietnamese market is attractive to foreign firms with advanced technologies, experience, efficient governance and strong finances.

On the sidelines of the conference, Thuy told the Saigon Times that Elise, which has more than 100 outlets nationwide, has benefited from the deal as its stake was purchased for millions of U.S. dollars, much higher than Elise’s charter capital.

With its international business experience, Uniqlo will help Elise develop and tap global markets.

According to Thuy, the trend of international investors buying into domestic firms will develop further when the CPTPP takes effect. At that time, Vietnam’s investment environment and competitiveness can be improved, so foreign firms will be more interested in the market.

Sectors expected to attract heavy investment when the CPTPP becomes effective include distribution, logistics, food, beverages, apparel and footwear.

Under the CPTPP, Vietnam will have to open up its market to international investors by allowing foreign law firms to provide consultancy services for commercial transactions and permitting the establishment of wholly foreign-owned companies in the country.

As for distribution, five years after the CPTPP ratification, Vietnam must abolish the regulation that a foreign-invested company wishing to open more than two retail outlets in the country must pass an economic needs test. In addition, foreign traders can distribute rice and sugar in the domestic market.

There are also commitments on customs clearance and logistics.

The market opening will definitely put pressure on local firms, which also provides motivation for them to improve the quality of their products and services to better satisfy customers’ demands.

At the conference, Huynh Van Hanh, vice chairman of the Handicraft and Wood Industry Association of HCMC, voiced concern over trade fraud and the condition that enterprises in non-CPTPP members invest in the country to take advantage of the deal.

Responding to Hanh, Pham Quynh Mai, deputy director of the Multilateral Trade Policy Department, said the Ministries of Industry-Trade, Finance and Planning and Investment should intensify the collaboration to address these problems. The Ministry of Industry and Trade has established the Trade Remedies Authority of Vietnam to handle potential commercial disputes.

Also, the ministry has ceaselessly sought new markets, such as Turkey, Israel and the United Kingdom, for locally made products. However, enterprises should prepare themselves to respond to challenges brought by free trade agreements (FTAs) as FTAs are an indispensable trend.

In the coming period, the ministry will establish a portal on FTA execution to support enterprises, said Mai.