Illustrative image (Photo: VNA)Hanoi, (VNA) – The domestic market is expected to see considerable changes in2019 as the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) became effective as from January 14, according to marketwatchers.
In2019, the import tax of agricultural products, milk and wine from CPTPP membercountries will be reduced in line with the set roadmap.
FromNovember 14, import taxes applied for grape wine and champagne from Canada willbe reduced from the current 56 percent to 41 percent and 36 percent in early2020.
Exceptfor Canadian lobster and salmon, Vietnam will erase all import tax forfisheries products such as frozen crab and fish from Canada and Australia,while cutting tax for Canadian salmon from 18 percent to zero percent, and thatfor Canadian lobster from 35 percent to 15 percent.
Lastyear, many foreign food businesses, including those from Japan, Australia andChile, introduced fresh and processed aquatic products as well as fruit,children’s food and vegetable to Vietnam to seek distribution channels.
LeVan May, CEO of Lotus Group, a Japanese nappy, formula milk and fooddistributor, said that Japanese firms will continue introducing more foodproducts to Vietnam to optimize the opportunities in the market.
NakajimaHayato from Japan’s Middis Inc. said that since 2017, the firm has cooperatedwith three Vietnamese businesses to introduce the milk trademark Bean Stalk toVietnam. The company will increase the sale of the product in Vietnam when theCPTPP takes effects, he said.
Meanwhile,a representative from Oitaken, a Japanese provider of Kosui pears, said thatthe company will also supply more products to Vietnamese consumers.
Seekingmeasures to improve the quality of domestic products, Nguyen Viet Dung, aNational Assembly deputy from Ho Chi Minh City, held that investment inagriculture should be carefully calculated as similar products from CPTPPmarkets are very competitive.
Hestressed the need to develop large-scale production facilities to help theapplication of technology, thus enhancing the competitiveness of domesticproducts.
TrinhQuoc Dung, Executive Director of Vinamilk group said that if Vietnamese firmsdo not make careful preparations, they will lose right in the domestic market.
Inthe context of strong competition from foreign firms, restructuring themselvesto reduce costs and improve the quality of their products is the only way forVietnamese breeding companies, meat processing and milk businesses, he stated.
Dungheld that products that are internationally competitive in the domestic marketwill have easier access to foreign markets.-VNA
VNA
