The Trans-Pacific Partnership deal (TPP) will offer more business opportunities for local small- and medium-sized enterprises (SMEs) though many challenges still remain, experts said.
The TPP deal encourages SMEs to develop, economic expert Nguyen Minh Phong said.
Diversification in the business sectors under the TPP will create large opportunities while seeking new markets at home and abroad for domestic enterprises, including SMEs, Phong said.
These business sectors include information technology (IT), e-commerce and financial services that will be suitable for young people, especially those with sound ability in IT and e-commerce.
Economic expert Huynh The Du said that it offers good opportunities for young people who have real ability in doing business and want to launch start-ups, Tuoi tre newspaper reported.
Meanwhile, according to the Vietnam Chamber of Commerce and Industry (VCCI), the local private economic sector represents 50 percent of the national gross domestic product (GDP), but operational efficiency of the sector has not improved much, with 70 percent of the enterprises running up losses.
Of the around 500,000 existing private enterprises at home, 2 percent are large scale enterprises, another 2 percent are medium-sized, while the remaining 96 percent are small-sized firms.
Therefore, economist Bui Trinh said, in the eventuality of Vietnam joining TPP, it needs to develop enterprises in the private economic sector to increase the internal power of the domestic economy.
Nguyen Dinh Cung, Director of the Central Institute for Economic Management, said that in theory, an economy cannot grow if the private economic sector does not develop. However, there are still many obstacles in the way of development of local private enterprises, Thoi bao Kinh doanh newspaper reported.
To promote development of the private economic sector when Vietnam joins the TPP, private enterprises, including SMEs, need for the State to remove obstacles, continue improving institutions, including an institution of market economy, Cung said.
The state should also promote renovation of the economic growth model, restructuring of the local economy and improvement of the business environment.
The state should soon issue a law on support for small- and medium-sized enterprises to solve their existing difficulties in investment and business activities, Cao Sy Kiem, Chairman of the Vietnam Small and Medium-sized Enterprise Association said.
The Ministry of Planning and Investment has compiled the law and launched meetings to elicit opinions from business communities, associations, and ministries, apart from cities and provinces, he said.
He hoped the law will offer support to SMEs in remaining and developing their business after the TPP come into effect, Dau tu newspaper reported.