The good impact of the Trans-Pacific Partnership is going to spill over to stocks of companies in other industries, not just stocks of companies in direct beneficiary sectors such as textiles, footwear and fisheries.
Speaking at the seminar titled “TPP Dialogue – Envisioned Growth Opportunities for Businesses in Vietnam” held today by KPMG Vietnam, together with the Vietnam Chamber of Commerce and Industry Ho Chi Minh City Branch and Ho Chi Minh Stock Exchange (HoSE), Tran Dac Sinh, chairman of the board of directors of HOSE, said that HOSE expected that as the economy grows, the quality of stocks listed on the stock market will be significantly improved.
“Not only the stocks of the beneficiary sectors such as textiles, footwear and fisheries, but also stocks of supporting industries will improve in quality. Indirect foreign investments to Vietnam will increase strongly and motivate the market to grow,” he said.
The seminar saw the participation of representatives from more than 30 local and international business associations, 200 foreign-invested and local businesses, and government agencies.
With Tran Quoc Khanh, Deputy Minister of Industry & Trade cum head of Vietnam’s TPP negotiation delegation as the keynote speaker, the seminar provided participants with a comprehensive overview of the Trans-Pacific Partnership, the potential impacts of this long-sought agreement on the business environment and the opportunities and challenges for businesses in Vietnam.
Warrick Cleine, chairman and CEO of KPMG in Vietnam and Cambodia, said that 2016 would be a milestone for the Vietnamese economic landscape.
“TPP and the other international agreements such as the EVFTA and the integration into the AEC will create numerous benefits for businesses in Vietnam as they will have the opportunity to expand into other markets, including important markets like the US, Japan and Australia,” he said.
Vietnam officially joined the TPP on February 4, 2016 after five years of negotiations. With 12 signing countries, the TPP has set the stage for what will become the world’s largest trading bloc with over 800 million people (11.2 per cent of the world’s population), contributing 40 per cent of the world’s GDP and 30 per cent of the world’s total revenue from international trading activities. Expected to come into effect from 2018, the TPP will open up additional opportunities for trading, manufacturing, import and export businesses in Vietnam.