The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), effective since December 30, may push Vietnam to reform its economic institutions and improve the business climate to optimise opportunities. CPTPP will offer Vietnam better access to the nine large Asia-Pacific markets, thus helping diversification of markets, experts feel.
As more than 90 per cent of import tariffs in CPTPP member markets have been lifted immediately after the deal took effect, it has opened up opportunities for Vietnamese goods to enter new markets, according to a Vietnamese newspaper report.
When tariffs are cut, Vietnam can increase the export of its key products such as textile-garment and footwear without competition from other countries, said Ngo Tuan Anh, economist at the National Economics University.
Garment-textile generated the biggest export earnings of more than $3.1 billion in 2017 for Vietnam with CPTPP member economies.
However, chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said several free trade agreements (FTAs) have brought only modest benefits for the country.
Vietnam needs to revise many regulations on trade, customs, labour and intellectual property to properly enforce the CPTPP and exploit its benefits, said Ngo Chung Khanh, deputy director of the multilateral trade policy department under the ministry of industry and trade.
The CPTPP was signed by 11 member states, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam in March 2018.