Practical benefits from effective CPTPP

The Ministry of Industry and Trade (MoIT) reported that out of 11 signatories, CPTPP is one of the global largest trade deal which covers nearly 500 customers and accounts for about 13.5% of global GDP.

The 11 economies include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam.

Viet Nam’s advantageous exports namely agriculture, aquaculture, electricity, and electronics enjoy tax exemption once the document took effect. Viet Nam’s total export turnover is forecast to increase by 4.04% and the country’s import revenue will increase by 3.8% by 2035. The CPTPP will bring about 20,000 to 26,000 jobs. 

However, CPTTP only helps Viet Nam access three additional markets as out of 10 CPTPP signatories Viet Nam has already inked FTA with seven countries in the types of bilateral or multilateral, or both. 

Specifically, with Australia and New Zealand, Viet Nam inked the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA); with Brunei, Malaysia, Singapore, Viet Nam had ASEAN Free Trade Agreement; with Chile, Viet Nam has Viet Nam-Chile FTA; with Japan, Viet Nam has the Viet Nam-Japan Economic Partnership Agreement (VJEPA) and ASEAN – Japan Comprehensive Economic Partnership (AJCEP).

Hence, this is the first time Viet Nam has FTA with Canada, Mexico, and Peru.

Viet Nam has run a trade surplus with the three additional markets over the past years. In 2017, Viet Nam shipped US$ 2.34 billion to Mexico and imported US$ 567 million. The Southeast Asian nation exported US$ 2.7 million of goods to Canada and imported US$ 774 million. Viet Nam exported US$ 331 million of goods to Peru and imported US$ 117 million./.

By Kim Loan