CPTPP comes into effect in Viet Nam today
CPTPP comes into effect in Viet Nam today
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect in Viet Nam today. The impact of the CPTPP on the economy depends greatly on the country’s ability to obtain opportunities and overcome challenges.
The Viet Nam’s National Assembly passed a resolution approving the deal and related documents on November 12, 2018.
With comprehensive commitments, high standards and balances, the CPTPP will help strengthen mutually beneficial links among member economies and boost trade, investment and economic growth in Asia Pacific.
According to calculations by the National Centre for Socio-Economic Information and Forecasting under the Ministry of Planning and Investment, the CPTPP would boost Viet Nam’s GDP by US$1.7 billion and exports by more than $4 billion by 2035, up 1.32 per cent and 4.04 per cent respectively.
The agreement will open new opportunities for trade and create more motivation for Viet Nam to reform its economic institutions and business environment.
The 11-member CPTPP officially came into force on December 30, 2018. The trade deal was signed by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam in Santiago in March 2018.
The agreement will create a huge free economic sector, with a market of about 500 million people and a combined GDP of more than US$13.5 trillion that accounts for 13 per cent of global GDP. The CPTPP has agreed on investment and service regulations for many areas, gradually abolishing 98 per cent of tariffs on agricultural and industrial products, easing investment regulations and enhancing protection of intellectual property.
In order to help Vietnamese businesses to understand the commitments of the CPTPP, the Ministry of Industry and Trade has co-operated with the Embassy of Australia in Viet Nam and the World Bank to build an e-commerce portal to introduce free trade agreements that Viet Nam is participating in (including CPTPP) with search tools specific for commitments and regulations in each sector and industry for each partner participating in the agreement.
The portal is expected to be introduced soon and officially operated on the Ministry of Industry and Trade’s website.
