Vietnam will benefit from the TPP playground

Vietnam, along with eleven countries in the Asia-Pacific region, is currently in the process of concluding negotiations on a Trans-Pacific Strategic Economic Partnership (TPP) agreement, The expression of the 21st century, is expected to be signed later this year.

This is the content of the conference “Transpacific Partnership Agreement and Vietnam’s Participation” organized by the Ministry of Industry and Trade in cooperation with the Vietnam Chamber of Commerce and Industry (VCCI) on November 15th. Hanoi.

At the meeting, Deputy Minister of Trade and Industry Tran Quoc Khanh, Head of the Government Delegation, presented the process of forming the TPP Agreement and introduced key requirements in the key negotiating areas such as tariff reductions. Textiles, services and investment liberalization, government procurement, intellectual property, trade and environment, labor and trade unions, state-owned enterprises, e-commerce …

In addition, Vice Minister also made comments on opportunities and challenges for Vietnamese enterprises as well as proposed some recommendations for effective participation and implementation of this Agreement.

Deputy Minister Tran Quoc Khanh, unlike the WTO negotiations, negotiated a much broader TPP.
If the WTO negotiates on the market for goods and services, some issues related to intellectual property rights, in TPP negotiations, besides these issues, Government procurement, labor issues, environment, state enterprise issues, etc.

If the WTO Agreement is a one-way negotiation, Vietnam must open the market to WTO members and have no right to require them to open their doors, the TPP Agreement is a “reciprocal” Countries want to open their markets and they also open up markets for Vietnam.

Currently, 12 TPP members are continuing discussions to reach wide consensus in October and will sign the agreement later this year.
According to experts in the country as well as international, when participating in this “playground”, Vietnam will be one of the most profitable countries because the main goal of the TPP is to reduce taxes and barriers to goods. For service.

As tariff lines decrease, Vietnam may be able to increase its exports of clothing, footwear and other commodities that have strengths in major markets, especially in the United States, without having to compete with Products of other countries.

Representatives of the textile and garment industry, one of the areas in which Vietnam has significant interest in negotiating the TPP Agreement, Le Tien Truong, Vice Chairman of the Vietnam Textile and Garment Association, has also raised the view and approach Of the textile and apparel industry for this agreement.

According to Truong, the TPP Agreement can create great export opportunities for Vietnam’s textile and apparel industry. However, in order to turn the opportunity into a concrete benefit, Vietnam’s textile and apparel industry faces certain challenges such as rules of origin, tariff reductions and the competitiveness of the textile and apparel industry. .

Assessing the impact of the TPP Agreement, according to economist Vo Tri Thanh, countries with lower levels of development will have the opportunity to grow stronger. In many quantitative studies of foreign experts, Vietnam is one of the big beneficiaries of TPP (most beneficiary countries are about 1-2 percentage points from TPP, about 5% in Vietnam alone).

However, this assessment does not fully account for institutional changes in domestic reform, which may support the process. In addition, among the 11 partners currently negotiating with Vietnam, seven partners now have free trade relations with our country; The remaining 4 partners (United States, Canada, Mexico, Peru), have not established free trade, so the main opportunity of Vietnam will expand in these four markets.

It is worth mentioning that, according to the economic structure of the countries negotiating with Vietnam, they have a more economic mechanism to complement Vietnam. Thus, the direct competitive impact with Vietnam may be but not as serious as concern.

At the conference, experts also said that through some qualitative research shows that the domestic industry may be the first difficulty is the car if Vietnam opens the market completely to the United States and Japan . Along with that, the agriculture sector with chicken, pig and cow is the advantage of the United States or sugar is the strength of Australia, the corresponding branches of Vietnam may also be difficult.

According to Deputy Minister Tran Quoc Khanh, the TPP Agreement is very broad, so the issues covered are not limited to the border but also to the issues beyond the border. It is important to introduce a transparent policy and this will bring tremendous benefits to local businesses.