The Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) was ratified at the National Assembly (NA)’s ongoing meeting on November 12, and the trade deal will help Vietnam expand its relations with CPTPP members, especially strategic partners.
Following Party General Secretary and President Nguyen Phu Trong’s report on the Agreement, NA deputies discussed opportunities and challenges that Vietnam faces during international integration.
The CPTPP agreement involving 11 countries in the Asia-Pacific region will take effect next month after Australia ratified the Agreement last month on October 31 and became the 6th country to do so. Vietnam’s ratification of the agreement reflects its strong commitment to renovation and international integration and elevates its status in Southeast Asia, Asia Pacific, and in the world.
CPTPP improves Vietnam’s political, economic position
Amid rapid, unpredictable, and complicated security and political changes in the region and the world, the ratification of the CPTPP will improve Vietnam’s response capacity and strengthen Vietnam’s external policy of independence, self-reliance, multilateralization, and diversification and its national defense and security.
Deputy Prime Minister and Foreign Minister Pham Binh Minh said, "Vietnam’s participation in the CPTPP agreement reflects its strong commitment to international integration and its geopolitical role in Southeast Asia and the Asia-Pacific region and raises its position in ASEAN, the region and the world. Economically, the markets of CPTPP countries are big and their GDP account for 13.5% of global GDP. Japan is the world’s 3rd largest economy, so participating in CPTPP will bring great benefits to Vietnam. According to the Ministry of Planning and Investment, the agreement could boost Vietnam’s GDP more than 1.3% and exports and 4% by 2035."
Turning challenges into opportunities
NA deputies agreed that the CPTPP will help Vietnam strengthen its economy, attract more foreign investment, and expand its exports to larger markets.
Tran Anh Tuan, a deputy of Ho Chi Minh City, said, "During international integration, there will be fierce competition with respect to product prices, quality, and design which will demand innovation and creativity. The application of technology to production will help Vietnamese enterprises boost productivity."
National competitiveness is Vietnam’s great challenge in participating in CPTPP. To address the problem, the Vietnamese government has improved its business environment and promoted a competitive attitude.
Economist Tran Hoang Ngan said, "This agreement is not just a trade agreement but a comprehensive and progressive agreement on tariffs and investment, intellectual property rights, government procurement, labor, and investment in services. It’s a progressive agreement because it concerns all types of enterprises including small and medium sized enterprises. We need to publicize the agreement to enterprises so they will understand its opportunities and challenges."
The CPTPP is the third largest free trade area in the world after the North America Free Trade Agreement and the European Single Market.
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