Hanoi (VNA) – The CPTPP, which officially came into force on December 30,2018, is expected to provide a push for Vietnam t🉐o reform its economicinstitutions and further improve the business climate to optimize opportunitiesbrought by the deal.

Experts said the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) will give Vietnam better access to the ninelarge markets in the Asia-Pacific, thus helping the country diversify itsimport-export markets. Moreover, the lifting of more than 90 percent of importtariffs in CPTPP member markets immediately after the deal took effect willopen up opportunities for Vietnamese goods to enter new markets. Ngo Tuan Anh from the Economics Department, the NationalEconomics University, said the Asia-Pacific region accounts for 70 percent ofVietnam’s total export revenue and 80 percent of import value. When tariffs arecut, Vietnam can increase the export of its key products such as textile-garmentand footwear without competition from other countries. Statistics showed in Vietnam’s trade with CPTPP membereconomies, garment-textile generated the biggest export earnings at more than3.1 billion USD in 2017, followed by transport vehicles with over 2.17 billionUSD, machinery and equipment with nearly 1.72 billion USD, seafood with 1.3billion USD and wood products with over 1 billion USD. However, Chairman of the Vietnam Chamber of Commerce andIndustry (VCCI) Vu Tien Loc took a cautious approach, citing the lessons ofprevious free trade agreements. He noted that despite optimistic forecast,several FTAs have brought only modest benefits for Vietnam. According to Loc,the country has made use of just about 40 percent of benefits generated bypreferential tariffs, and most of which went foreign investors in the country. Therefore, economists emphasised the importance of strongermeasures to reform economic institutions and further improve the businessenvironment, so as to better make use of opportunities. Deputy Director of the Multilateral Trade Policy Department(Ministry of Industry and Trade) Ngo Chung Khanh said Vietnam needs to revisemany regulations on trade, customs, labour and intellectual property in orderto properly enforce the CPTPP and make the best use of the deal. “We will have to revise at least seven laws along withdozens of decrees and sub-law documents to bring our legal framework closer tointernational standards,” Khanh said. According to him, commitments under the CPTPP will generatepositive effects on the domestic investment environment. Nguyen Toan Thang from the Hanoi Law University agreed,saying that the deal will put Vietnam in a better position to attract foreigninvestment from other members, especially those with which Vietnam has yet tosign a bilateral FTA such as Canada and Mexico. Ngo Tuan Anh noted that there is a big gap between CPTPP’srequirements and Vietnam’s real capacity, which forces Vietnam to make effortto meet the requirements. Without strong enough reform, the country will facegreat risks, he said.

TheCPTPP was signed by 11 member states, namely Australia, Brunei, Canada, Chile,Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam in March2018.

It isone of the most comprehensive trade deals ever concluded and strips 98 percentof tariffs for the 11 countries with a combined GDP of more than 13.5 trillionUSD and close to 500 million consumers.

 It is expected to promote economic growth andpoverty reduction, create more jobs and improve𓆏 the living condition for thepeople at💝 member nations.-VNA