Pundits: CPTPP could help stimulate growth and reforms

Chilean President Michelle Bachelet and trade ministers from 11 CPTPP member countries at the signing ceremony in Santiago, Chile on March 8, 2018. Photo: Kyodo

Multilateral trade agreements such as the CPTPP are expected to further boost Viet Nam’s investment and export driven growth model, says the report.

“Even under conservative assumptions, the report estimates that CPTPP would increase Vietnam’s GDP by 1.1 percent by 2030. Assuming a modest boost to productivity, the estimated increase of GDP would amount to 3.5 percent from CPTPP,” according to Ousmane Dione, World Bank Country Director for Viet Nam.

All income groups are expected to benefit from this new agreement, although higher-skilled workers in the top 60 percent of the income distribution may reap more.  In addition, the anticipated increase in FDI is expected to lead to a further expansion of services sectors and boost productivity growth. It  will create opportunities for domestic private firms to integrate into global value chains and promote the development of the SME sector.

Meanwhile, Sebastian Eckardt, the World Bank Lead Economist for Viet Nam said: “The new agreement will bring direct benefits to Viet Nam, from trade liberalization and improved market access. Most importantly, it will help stimulate and accelerate domestic reforms in many areas.”

“Delivering commitments under the CPTPP will contribute in promoting transparency and supporting the creation of modern institutions in Viet Nam,” Sebastian Eckardt added.

The CPTPP is expected to stimulate reforms in areas such as competition, services (including financial services, telecommunications, and temporary entry of service providers), customs, e-commerce, environment, government procurement, intellectual property, investment, labor standards, legal issues, market access for goods, rules of origin, non-tariff measures, trade remedies etc.

Ms. Rebecca Bryant from Australian Embassy in Viet Nam said her country pledged to help Viet Nam utilize opportunities from the trade deal.

HSBC Viet Nam CEO Pham Hong Hai spoke highly of the determination of the 11 member countries after the US pulled out of the Trans-Pacific Partnership (TPP) in January 2017.

The CPTPP (or TPP-11) is of significant importance in the context that protectionism tends to expand, Hai said.

By Quang Minh