Vietnam has recently approved the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (Photo: VNA)Hanoi (VNA) – Joining the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP) will provide Vietnam with a goodopportunity to continue perfecting its socialist-oriented market economyinstitutions and improving its business and investment environment in a more openand transparent manner, many experts have said.
CPTPP isthe new name of the Trans-Pacific Partnership Agreement (TPP), made up of 11signatories following the US’ withdrawal. The current member states are Australia,Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,and Vietnam, who signed the deal in March 2018.
TheVietnamese National Assembly passed a resolution ratifying the CPTPP andrelated documents on the afternoon of November 12. Mexico, Japan, Singapore,New Zealand, Canada and Australia had already ratified the agreement.
It is considereda high-quality free trade agreement and one of the most comprehensive tradedeals ever concluded. CPTPP member states form a giant market with 500 millionconsumers, accounting for 15 percent of the world’s gross domestic product(GDP) and 15 percent of the global trade turnover.
The pactnot only mentions traditional issues regarding tariff cuts, the servicesmarket, intellectual property, and technical barriers related to trade; butalso addresses new and non-traditional issues related to labour, theenvironment, and the purchase of state-owned enterprises.
Inaddition, member states signed several bilateral agreements and commitments inthe form of letters and memoranda of understanding.
ForVietnam, being one of the first countries to join the agreement demonstratesthe Party and State’s policy of taking the initiative in internationalintegration, affirming the country’s important geo-political position and rolein both Southeast Asia and in the Asia-Pacific region, as well as raising itsposition in the Association of Southeast Asian Nations (ASEAN), the region andthe world.
Thecountry’s ratification of the agreement is a step towards realising its policyof multilateralisation and diversification of international relations. Theagreement is expected to open up more chances and favourable conditions,helping boost Vietnam’s exports to countries in Asia, America and Oceania,including such major markets as Japan, Australia and Canada.
Vu TienLoc, Chairman of the Vietnam Chamber of Commerce and Industry, stated that the CPTPPwill offer Vietnam a chance to expand its trade ties with new potential marketsin America, and expand and deepen relationships with current markets, includingmany strategic partners.
This isalso an opportunity to raise profits for enterprises, generate more jobs forlabourers, improve people’s living conditions, boost economic development, andmultilateralise international economic relations, thus helping ensuresustainable and autonomous development, Loc said. He added that the opportunityis more valuable in the context of the world’s unstable economic situation withits escalating trade wars and conflicts.
Accordingto a survey carried out by the Ministry of Planning and Investment, the CPTPPcan help the country’s GDP, export and import increase by 1.32 percent, 4.04percent and 3.8 percent by 2035, respectively.
Engaging infree trade agreements with member states will help Vietnam restructure itsimport-export markets in a more balanced manner, thus contributing toincreasing the country’s independence and autonomy.
It willalso offer a chance for the country to participate in a supply chain formedafter the agreement becomes effective so it can take part in production stageswith higher added value, said the survey.
Last year,Vietnam’s total trade turnover with CPTPP member states surpassed 67 billionUSD, accounting for 15.84 percent of its total import-export value. Vietnamenjoys trade surpluses with almost all signatories.
At present,Vietnam is paying close attention to stepping up production for export with a numberof tax incentives and openness in technical barriers.
Theagreement will bring about big opportunities for import-export enterprises inVietnam, including both domestic and foreign invested ones. Its investment andservices-related commitments are expected to help improve the nation’sinvestment environment and facilitate it in attracting more FDI, especially infields it holds a particular demand.
Currently, allmember nations except Peru have invested in Vietnam. Altogether, they have sofar poured around 123 billion USD into the country, accounting for nearly 37percent of the total FDI registered for Vietnam over the past 30 years. –VNA
VNA
