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The impact of TPP to Vietnam's economy: The necessary preparation
The impact of TPP to Vietnam's economy: The necessary preparation
21/1/15
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 ]
In general, TPP commitments are ensuring consistency and homogeneity with the intention of restructuring Vietnam’s economy.
This is the most decisive factor distributing our human resources effectively in order to contribute to economic growth.
More importantly, the TPP helps reform economic institutions in accordance with international rules
Clearly, together with benefits along the TPP track, Vietnam’s economy is ready to transform in combination with its current and future competitive capacity.
The country should consider natural resources expenses, environmental protection spending and social welfare issues.
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.
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.
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.
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.
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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