Hanoi (VNA) – The Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) has recently taken effect inVietnam, which will bring about both opportunities and challenges for manyfields, including agriculture.

Tran Van Cong, deputy head of the Agro Processing and MarketDevelopment Authority, said that Vietnamese firms will be able to expand their exportmarkets to some of the world’s largest, as well as boost exports of high-value processedproduce, making it easier to join the global supply chain.

According to him, processed fruits and vegetables, and dairyproducts will face intense competition. However, the sector also has some advantagesin low-cost manufacturing and low-paid workforce, along with an abundance ofsupply.

In order to fully reap the benefits of the CPTPP andmitigate the impacts of possible challenges, he said the agricultural sector must step up restructuring byimproving added value and sustainability, and limiting reliance on importedmaterials.

Focus must be given to national, provincial, and local-levelproducts in combination with geographical indication and the “One Commune, OneProduct” programme, he said.

Meanwhile, the wood sector will benefit from preferentialtax as import tax for Vietnamese wooden furniture into Canada, Mexico, and Peruhas been high in the past.

Huynh Van Hanh, Vice Chairman of the Ho Chi Minh CityHandicraft and Wood Industry Association, said incentives from the CPTPP willhelp the sector reduce prices and improve its competitiveness.

Vice President of the Vietnam Timber and Forest ProductAssociation Nguyen Ton Quyen said that apart from wooden furniture, taxes forwood processing equipment will also be cut to zero, raising hopes for woodprocessors.

He suggested that domestic firms improve corporategovernance, technical process, and marketing.–VNA