Instead of running after imported products, Vietnam’s breeding industry should develop its specialties to improve competitiveness and create difference to avoid possibly bad impacts from ASEAN Economic Community (AEC) and Trans-Pacific Partnership (TPP) agreements, said head of the Vietnam Economics Institute Tran Dinh Thien.
|A pig farm in Phuoc Long, Binh Phuoc province (Photo: SGGP)|
The Vietnam’s breeding industry should speed up restructuring by determining its own strengths because the agreements would not only cause difficulties but also bring some certain advantages, he added.
Many experts and businesses have concerned that the uncompetitive breeding industry would suffer bad impacts of global economic integration more deeply with free trade agreements which negotiations have nearly wrapped up.
The breeding industry would be offered as a sacrifice to return for incentives in other fields when Vietnam negotiated free trade agreements, said Binh Duong province based Kim Long Company Chung Kim at meeting with Minister of Agriculture and Rural Development Cao Duc Phat.
According to a study group from the Institute of Vietnam Institute for Economic and Policy under the National University in Hanoi, the breeding industry is among industries forecast to suffer negative impacts from TPP. Local products will face severe competition from import frozen meat.
|Breeding industry faces many challenges from global integration (Photo: SGGP)|
In integration, Vietnam would have to accept to quit some disadvantageous industries to benefit other advantageous industries, they said.
Influences from AEC are forecast to be insignificant because import tariffs on farm produce from ASEAN nations are low at only 0-5 percent
Meantime, TPP will slash import tariffs on breeding products from Australia, New Zealand and Japan that are highly imposed now, especially to beef, pork, chicken and processed meat. Therefore, the agreement is feared to narrow local breeding industry.