CPTPP officially takes effect for Viet Nam

VGP – Since January 14, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has officially come into effect in Viet Nam, which is expected to contribute US$1.7 billion and US$4 billion, or 1.32% and 4.04%, of Viet Nam’s GDP and export value respectively, by 2035.

January 14, 2019 11:58 AM GMT+7

Viet Nam’s exports in 2018 hit US$245 billion, 45 times higher than in 1995 (US$5 billion) and six times higher than in 2006 (US$40 billion). The nation enjoyed the trade surplus exceeding US$7 billion in 2018.

The CPTPP has officially come into effect since December 30, 2018 for the first six nations approving the agreement, including Mexico, Japan, Singapore, New Zealand, Canada and Australia.

The Vietnamese National Assembly ratified the Resolution on approving the CPTPP and other related documents on November 12, 2018.

With comprehensive, high-standard and balanced commitments, the CPTPP will strengthen connectivity of joint benefits between member economies and boost trade, investment and economic growth in the Asia-Pacific region.

The agreement creates a huge free economic area with the scope of around 500 million people and making up 13% of the global GDP. It includes regulations on investment and service for a number of areas, gradually eliminate tariff lines on agricultural and industrial products.

Besides opportunities in trade, the CPTPP also creates an impetus for Viet Nam to enhance institutional reform and improve the business environment.

By Thuy Dung