Illustrative image (Photo: VNA)Hanoi (VNA) – The Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to helpraise Vietnam’s gross domestic product (GDP) by 1.3 percent, according to anofficial of the Ministry of Planning and Investment (MPI).
The number may amount to 2.1 percent if there are opener policies for services,Tran Toan Thang from the MPI’s National Centre of Socio-Economic Informationand Forecast (NICF) said in an interview with the Vietnam News Agency.
Under the agreement, Vietnam will find it easier to access markets with lowertariffs as well as markets with which Vietnam has yet to sign free tradeagreements like Canada, Mexico and Peru, he said.
Thang cited NICF’s forecast that export will rise about 4 percent while importwill expand close to 3.8 percent.
He said garment-textile and leather-footwear will benefit most from the deal, withexport of the garment-textile sector projected to increase from 8.3-10.8percent as the result of price competition.
The agreement will also help light and labour-intensive industries grow 4-5percent, and their export climb 8.7-9.6 percent, Thang added.
Moreover, the inflows of foreign direct investment (FDI) in Vietnam will spurthe development of the support industry in the country, thus reducing its tradedeficit with China.
On the contrary, due to impacts of the CPTPP, such sectors as husbandry, foodprocessing and insurance services may grow slowly, he said, noting that withits weak competitiveness, the husbandry sector will be affected most.
The agreement will lead to fierce competition at home and in other membercountries at the levels of product, business and country, Thang said,suggesting firms learn more about the deal to optimise its advantages.
If domestic enterprises fail to bring into full play export opportunities, theywill suffer from adverse impacts on export, he said.
The 11-member CPTPP officiallycame into force on December 30, 2018. It will cut tariffs on agricultural andindustrial products, ease investment regulations and enhance protection ofintellectual property.
It is one of the most comprehensive trade dealsever concluded and strips 98 percent of tariffs for the 11 countries with acombined GDP of more than 13.5 trillion USD and close to 500 million consumers.
The agreement is expected to promote economicgrowth and poverty reduction, create more jobs and improve the living conditionfor the people at member nations.
The trade deal was signed by 11 member states,namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, NewZealand, Peru, Singapore, and Vietnam in Santiago in March 2018. –VNA
VNA
