Minister: CPTPP vital to sustainable development in Vietnam
Updated : Wednesday, March 07, 2018 10:02 AM (GMT+0700)

TheComprehensive and Progressive Trans-Pacific Partnership (CPTPP) Agreementwould be a vital deal in utilising free trade and ensuring sustainabledevelopment in Vietnam, said Minister of Industry and Trade Tran Tuan Anh. 

Minister of Industry and Trade Tran Tuan Anh - Source: VNA

Therefore, economic sectorsshould prepare and take the initiative in economic restructuring in order tomaximise the pact, which is scheduled to be inked in Chile on March 8 (localtime) by ministers from its 11 member countries, Anh told the Vietnam News Agency (VNA). 

The minister said suchsectors as garment-textiles, footwear, food processing, beverage,confectionery, tobacco, wine and beer will benefit most from the deal. 

He cited a research jointlyconducted by the World Bank (WB) and the research institute under the Ministryof Planning and Investment as saying that Vietnam’s GDP would be 1.1 percenthigher in 2030 thanks to the CPTPP. 

Like other member countries,Vietnam has committed to market opening and trade facilitation andliberalisation towards lifting non-tariff barriers, the minister said. 

At the same time, thecountry will continue to streamline State management of market development, hesaid, stressing that through the agreement, competitiveness of the nationaleconomy as well as businesses will be likely improved. 

Citing 36 billion USD inforeign direct investment (FDI) poured into Vietnam in 2017, Anh said the pactwould lead to breakthroughs in the flow of investment into the country. 

Domestic businesses,therefore, will have more resources to develop further and access technologiesas well as quality human resources, the minister emphasised. 

However, apart fromopportunities, the agreement would pose challenges to both the business circleand people if less attention was paid to fulfilling integration commitments,the minister warned. 

He cited lessons withdrawnfrom Vietnam’s joining the World Trade Organisation (WTO) and signing of theBilateral Trade Agreement (BTA) with the US to clarify his views. 

The official said a numberof fields in the agriculture sector like sugarcane exploitation and sugarindustry have remained slow in restructuring, as compared with other sectorslike telecommunications, e-commerce, garments-textiles and footwear. 

According to him, theMinistry of Industry and Trade has designed specific communications projects inorder to help businesses and people grasp opportunities generated by theagreement. 

The ministry will alsosubmit an overall action plan to the Government in preparation for theimplementation of Vietnam’s integration commitments while reviewing its legalframework. 

The CPTPP is set to takeeffect in early 2019 after it is ratified by at least six member countries. Itsmember economies make up about 13 percent of the global GDP.

After the US withdrew fromthe Trans-Pacific Partnership (TPP), the predecessor of the CPTPP, in 2017, theremaining 11 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia,Mexico, New Zealand, Peru, Singapore, and Vietnam) agreed to maintain the dealand rename it CPTPP.

They agreed on the revisedcontent of the agreement on January 23, 2018.

On February 21, the fulltext of the CPTPP was announced, which is considered a sign showing that the 11countries are ready to sign the agreement.

According to Reuters, more than 20 provisions of theCPTPP were suspended or changed compared to the TPP.

Earlier, US President DonaldTrump said his country would consider re-entering the CPTPP if the US could geta better deal.


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