Speaking at the TPP training course organized by the HCMC Department of Industry and Trade, the WTO Center and Thoi bao Kinh te Sai Gon on Monday, many experts warned that local firms would face big troubles as Vietnam is the least developed economy among 12 members in the negotiation.

The gap of development levels has caused many problems that remain to be addressed, such as State-owned enterprises, certificates of origin and intellectual property rights that have yet to be solved, they said.

Dinh Quang Thang from Fulbright Economics Teaching Program said that the U.S. has asked for more and more standards regarding copyright such as brand, design, sound and fragrance that local enterprises have never applied. Meanwhile, the U.S. has downplayed geographic indications, a strong point of Vietnam.

Vietnam now has around 933 products and services attached to 721 geographic names, including around 800 renowned trademarks. However, only 136 products have been granted with appellation certificates so far.

Many countries have reportedly opposed to strict requirements from the U.S. and intellectual property rights remain a big challenge during the negotiations.

Experts at the training day said that Vietnam’s negotiation team must be determined in objecting to the regulations and should try to maintain current regulations in the Trade-related Aspects of Intellectual Property Rights (TRIPs). Otherwise, the nation has to revise the intellectual property law and enterprises will have to face many lawsuits related to the issue.

Concerning the “yarn forward” ROO (Rule of Origin), which requires the TPP nation to use a TPP member-produced yarn in textiles in order to receive duty-free access, Vu Xuan Hung, deputy director of the legal department of the Vietnam Chamber of Commerce and Industry (VCCI) of HCMC, said the rule will help boost investment in the fiber industry.

However, for the negative side, the nation will meet challenges as investment in the sector is very costly. Therefore, foreign investors may reign over the yarn industry in Vietnam.

As negotiation documents and suggestions of member nations remain confidential, the experts made predictions basing on private agreements or information leaked in the Internet.

In a related development, the U.S. Ambassador to Vietnam David Shear will deliver a speech on TPP at Can Tho University on November 21.

Source: The Saigon Times