CP TPP will bring in huge economic benefits for Vietnam, says WB report - Illustrative image (Source: VNA)Hanoi, (VNA) – The Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CP TPP) will bring in huge economic benefits forVietnam, as according to a new World Bank report released on March 9 amid thefresh signing of the agreement by Vietnam and 10 other countries.
Accordingto the report titled “Economic and Distributional Impacts of Comprehensive andProgressive Agreement for Trans-Pacific Partnership: The Case of Vietnam”,multilateral trade agreements like the CP TPP will help boost Vietnam’sinvestment and export driven growth model.
“Evenunder conservative assumptions, the report estimates that CP TPP would increaseVietnam’s GDP by 1.1 percent by 2030. Assuming a modest boost to productivity,the estimated increase of GDP would amount to 3.5 percent from CP TPP,” saidOusmane Dione, World Bank Country Director for Vietnam.
SebastianEckardt, the World Bank Lead Economist for Vietnam, said that the deal willdirectly benefit Vietnam, from trade liberalisation and improved market access.
Itwill also help stimulate and accelerate domestic reforms in many areas, hestated, adding that delivering commitments under the CP TPP will contribute inpromoting transparency and supporting the creation of modern institutions inthe country.
Allincome groups are expected to benefit from this new agreement, althoughhigher-skilled workers in the top 60 percent of the income distribution mayreap more. In addition, the anticipated increase in FDI is expected to lead toa further expansion of services sectors and boost productivity growth. It willcreate opportunities for domestic private firms to integrate into global valuechains and promote the development of the SME sector.
[Minister: CPTPP reflects Vietnam’s global integration]
TheCP TPP is expected to stimulate reforms in such areas as competition, services(including financial services, telecommunications, and temporary entry ofservice providers), customs, e-commerce, environment, government procurement,intellectual property, investment, labor standards, legal issues, market accessfor goods, rules of origin, non-tariff measures, and trade remedies.
Thereport is assisted by the Australia – World Bank Group strategic partnershipwhich supports Vietnam’s development agenda through technical assistance,capacity building, and analytical work.
“Togetherwith the World Bank, we are committed to helping Vietnam take advantage of thesubstantial economic opportunities created through CP TPP,” Australian Charged’Affaires Rebecca Bryant said. “This includes assistance to enhancecompetitiveness, reduce trade barriers, and improve connectivity”.
Theofficial signing of CP TPP took place in Santiago de Chile on March 8 (localtime), with the participation of representatives from 11 member countries,namely Chile, Australia, Brunei, Canada, Malaysia, Mexico, Japan, New Zealand,Peru, Singapore and Vietnam.
CPTPP was launched a year ago after the US withdrew from the Trans-PacificPartnership (TPP) agreement.
Thecontent of CP TPP was basically unchanged from the original TPP with 8,000pages, except for the suspended implementation of 22 provisions mainly relatedto intellectual property. It sets high criteria in numerous fields, includinglabour, the environment, intellectual property, digital economy and cybersecurity.
Theofficial signing of the pact will facilitate the promotion of economic growthand job generation, poverty reduction, and improvement of people’s livingconditions. With its commitment to market opening, CP TPP delivers a strongmessage against protectionism, while proving that an opening economy willbenefit member nations, according to experts.
Thepact will create one of the world’s largest free trade blocs with a combinedmarket of 499 million people and GDP of around 10,100 billion USD, accountingfor 13.5 percent of the global GDP.
Thepact will come into force 60 days after it is fully ratified by at least six ofthe 11 members. -VNA
VNA
