Opportunities from TPP Agreement

Date: 19/12/2013

Steel businesses can achieve a higher growth

(VEN) - Together with an increase in exports, steel exporters will enjoy benefits when Vietnam participates in the Trans-Pacific Partnership (TPP) Agreement.

Overcoming difficulties for steel businesses

According to the General Statistics Office (GSO)’s data, in the first 11 months of this year, the country exported two million tonnes of steel with a total value of US$1.61 billion, an increase of 17 percent compared to the same period last year. In the context of economic difficulties, exports have actually become a solution to overcome difficulties for steel businesses.

According to forecasts, in 2013, the country could export about 2.3 million tonnes of steel, an increase of 15 percent compared to 2012. Some steel products reach high export volume such as corrugated iron (an increase of 62.8 percent) and stainless steel (an increase of 39 percent). Thanks to exports, the steel sector could reach a growth of about seven percent in 2013.

In terms of markets, steel products are exported to 26 countries around the world such as Brazil and Southeast Asia nations.

Opportunity from the TPP Agreement

Steel businesses will enjoy benefits when Vietnam participates in the TPP Agreement. Vietnam Steel Association former Chairman Pham Chi Cuong said that when Vietnam participates in the TPP Agreement, the steel sector can consume more products and import better products. In addition, thanks to tax reduction, the steel sector will have more opportunities to increase sales in foreign countries. Moreover, many countries in the TPP Agreement have modern technology to produce high quality steels. This is also an opportunity for domestic consumers to purchase good products at cheaper prices.

Vietnam mainly exports steel to the ASEAN market with preferential tariff of zero percent. However, when the TPP Agreement takes effect, steel businesses can export their products to potential markets such as the US, Chile, New Zealand, Australia and Mexico.

Vietnam Steel Association former Deputy Chairman Nguyen Tien Nghi said that the steel sector was ready and prepared all conditions to enter larger markets. In particular, the steel sector would take full advantage of opportunities from the TPP Agreement. Many steel businesses have strongly invested and expanded production line. The Ton Dong A Joint Stock Company has invested in constructing a plant covering on an area of 12 hectares with a total capital of about US$120 million with a capacity of 350,000 tonnes. In particular, many steel businesses have implemented trade promotion programs to catch up opportunities from the TPP Agreement.

“Many businesses have actively invested in modern machinery and equipment to reduce production costs and manufacture high quality steel products in order to improve their competitiveness. This is the most intelligent manner because Vietnam’s steel businesses must to compete with foreign businesses,” Nguyen Tien Nghi said./.

Phuong Lan

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