Vietnam’s economic linkage has gone to a new level, thanks to the recent approved Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) and the upcoming EU – Vietnam Free Trade Agreement (EVFTA), according to Prime Minister Nguyen Xuan Phuc.
Prime Minister Nguyen Xuan Phuc at the ABAC meeting. Source: VGP.
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According to Phuc, CPTPP would bring huge strategic and economic benefits to its members, including Vietnam. More importantly, the deal is necessary for Vietnam to continue the economic restructuring process and improve its business and investment environments.
Meanwhile, CPTPP would help Vietnam enhance labor productivity and national competitiveness, opening up opportunities for local enterprises to move up in the ladder of global value chain.
As a new-generation FTA, the CPTPP would pose many challenges to Vietnam. To implement the regional trade deal, Vietnam would need to revise some legal frameworks, ensuring their compatibility with the agreement. Moreover, Vietnam has to be able to compete with others for market shares of the member countries in the CPTPP.
With the addition of the CPTPP and later the EVFTA, Vietnam would participate in a network of 16 FTAs consisting of 60 countries, which account for 61% and 68% of global GDP and trade turnover, respectively.
Phuc said Vietnam has been preparing the required infrastructure for the development of digital economy, including modern IT infrastructure, e-government and smart cities.
The PM expected the regional business community and ABAC to support Vietnam during the process of developing digital economy.
At the meeting, ABAC members congratulated Vietnam on the approval of the CPTPP, adding that this would encourage more foreign investors to come to Vietnam.
On November 12, Vietnam’s National Assembly gave passage to the CPTPP with the endorsement of 100% deputies present.
As such, Vietnam has become the seventh member country to official ratify the 11-nation deal after the US withdrew in January 2017.
The CPTPP will enter into force on December 30 after six signatory countries of the agreement including Mexico, Japan, Singapore, New Zealand, Canada and Australia, have already approved the deal.
The CPTPP economies make up around 13% of global economic output and 500 million people. It includes tariff cuts and removal of non-tariff barriers among its members and is designed around high standards on human rights, labor practices, and environmental standards.
