The impact of TPP to Vietnam's economy: The necessary preparation

21/01/2015
The evaluation of the advantages and disadvantages of Vietnam when joining the TPP as well as the impact of TPP to the economy of Vietnam is the necessary preparation for Vietnamese enterprises to join the TPP actively and effectively.
TPP will bring major opportunities for Vietnam's economy, including: Improving the structure of export-import markets (especially in the garment industry, footwear, seafood, timber, coffee, rubber...); opening more markets for goods of Vietnam; participating higher and deeper in regional and international production chains; facilitating economic restructuring and growth model innovation; improving the institutional environment to increase attractiveness to foreign and domestic investment, creating new production capacity and jobs for workers.
However, beside the new favorable opportunities, international and regional economic integration also makes significant challenges to the economy. For Vietnam, the requirement of origin, intellectual property, transparency requirements and principles in order to ensure state-owned enterprises to compete on equal terms with private companies... in TPP are big challenge. In addition, among 12 participating countries in TPP, Vietnam is the least developed country but to make the equal commitments and non-discrimination principles.
TPP poses great challenges for Vietnam's economy such as creating direct competition for domestic producers because of reducing import tariffs and opening markets investment services...; it simultaneously creates pressure on the institutional environment improvement and adjustment of the legal system.
Business community also need more information and legal guidance to ensure opportunities in the context of Vietnam's integration into the world economy. Moreover, goverment should disseminate common experiences and evaluate the implementation of commitments related to financial markets of ASEAN, paving the way for Vietnam’s integration in line with TPP agreement.
As joining the TPP, Vietnam enterprises must have good corporate governance and evaluate production activities according to international standards of accounting, auditing, especialy pay attention to transparent business information... take advantage of new opportunities for attracting foreign capital, meet the stringent requirements of foreign investors from TPP member countries.
The main goal of the TPP is to establish a free trade space for the Asia - Pacific countries with wide and deep level of commitment. TPP is considered as the trade agreements of the century XXI. TPP aims to five main points:
1. Facilitate for the goods from the members countries to access each other's markets and favorable tax exemption; the restrictions on services simultaneously removed to create new opportunities for workers and enterprises as well as the direct benefits for consumers;
2. Develop a comprehensive regional agreements in order to create favorable conditions for trade and production - supply chains among TPP members, support the goal of creating jobs, raise living standards and improve the well-being interests in the member states;
3. To form a framework agreement on the basis of the agreements made in the framework of APEC and other fora;
4. Consider the emerging issues in global trade as part of the TPP negotiations;
5. Made TPP as an open agreement to other Asia - Pacific countries.

Until now, with the participation of 12 countries (including the US, Canada, Mexico, Peru, Chile, Australia, New Zealand, Malaysia, Singapore, Brunei, Vietnam and Japan), TPP is creating the world's largest trade area with population of over 804 million people (11.2% world) and economic output reached 27,807 billion, equivalent to 40% of global GDP and 30% of total world export revenue. Therefore, TPP is expected to bring great opportunities for Vietnam, connect the economy of Vietnam with the US and other member countries.
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All comments [ 10 ]


Quân Hoàng 22/1/15 12:27

In general, TPP commitments are ensuring consistency and homogeneity with the intention of restructuring Vietnam’s economy.

Huy Quốc 22/1/15 12:28

This is the most decisive factor distributing our human resources effectively in order to contribute to economic growth.

Hoàng Lân 22/1/15 12:29

More importantly, the TPP helps reform economic institutions in accordance with international rules

Vân Nhàn 22/1/15 12:30

Clearly, together with benefits along the TPP track, Vietnam’s economy is ready to transform in combination with its current and future competitive capacity.

Hùng Quân 22/1/15 12:31

The country should consider natural resources expenses, environmental protection spending and social welfare issues.

Lê Tín 22/1/15 12:32

With the country’s TPP participation, macroeconomics category is very important. Macroeconomic instability could hurt economic activities, harm confidence of investors and cause negative impacts on vulnerable subjects in the community.

Quốc Cường 22/1/15 12:32

Vietnam’s main benefits from the TPP agreement could be the improvement of the export and import market structure, joining regional and international production value chains, perfecting the institutional environment, increasing attraction to both domestic and foreign investment, creating new production competence and generating more jobs for workers.

Quốc Kiên 22/1/15 12:33

However, it also increases competition between domestic enterprises which will have a social impact on the country resulting in a need to adjust the legal system, management thought and capacity.

Huy Lâm 22/1/15 12:34

On the threshold of the TPP, domestic enterprises and the business community urgently need assistance in acquiring the appropriate information, legal instructions and practical orientations in order to take full advantage of investment and business opportunities.

Phạm Hiếu 22/1/15 12:35

Assessing benefits and risks to Vietnam’s joining the TPP as well as analyzing the impacts from the agreement to the economy are necessary preparations for domestic enterprises to effectively take advantage of the potential benefits

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