Vietnam’s food exports will benefit little from the Trans-Pacific Partnership (TPP), according to experts.

Food imports, however, will increase strongly, they said at a food processing industry workshop held by the HCM City Department of Trade and Industry in collaboration with the Food and Foodstuff Association (FFA) of HCM City on August 8.

Photo for illustration: giaic.com

Vietnam has a trade surplus of 3.3 billion USD in food trade with countries in the TPP because of low tariffs on seafood and coffee, Vietnam’s major exports.

They agreed that when the TPP takes effect, rice, vegetables and fruits will benefit but revenue from these commodities are low.

In addition, most enterprises in the food industry are small and medium-sized and are limited in terms of capital and technology. They have also been slow to learn about the TPP, so most will not be able to take advantage of the agreement.

According to Dr. Duong Nhu Hung, Vice Rector of the HCM City Economy-Law University, the TPP will open up markets, increasing competition in terms of scale and brand, making it harder for Vietnamese companies, who must compete with big international names.

Ly Kim Chi, Chairman of the FFA, said Vietnamese enterprises need to be more proactive in preparing for development and integration when the TPP takes effect.

Source: VNA