Vietnam’s National Assembly, the country’s supreme legislative body, on Monday gave pasage to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with the endorsement of 100% deputies present.
Illustrative photo.
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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.
Following the resolution, the National Assembly requested the government and related government agencies to revise legal frameworks, ensuring their compatibility with the agreement.
Prime Minister Nguyen Xuan Phuc is responsible for instructing central and local governments in implementing the CPTPP.
The government has to focus on training qualified human resources, which is necessary to take full advantage of the CPTPP. Meanwhile, it is essential to minimize negative impacts that could arise during the implementation process of the agreement, stated the resolution.
After the National Assembly’s approval, the government is expected to finalize the approval procedure of the CPTPP and announce Vietnam’s effective date for the deal.
Nguyen Van Giau, chairman of the National Assembly’s Committee for External Relations, said the government’s proposal for the deal ratification had included comprehensive evaluation on politic, national security, foreign, economic and social strategies.
On November 2, Vietnam’s President Nguyen Phu Trong submitted the CPTPP to the National Assembly for ratification.
According to Trong, with the participation in the CPTPP, country’s core interests and benefits would be ensured.
Additionally, the move would show Vietnam’s strong commitment to global economic integration, at the same time cementing Vietnam’s growing influence in the Southeast Asia and in the Asia-Pacific.
Deputy Prime Minister Pham Binh Minh added that the CPTPP would help Vietnam’s GDP and exports grow additional 1.32% and 4.04% by 2035. The country’s imports is expected to grow an additional 3.8%, which is lower than the growth rate of exports during the period.
Alternatively, the CPTPP would help Vietnam rebalance its export markets, in turn increasing its economic independence, Minh said, adding that the formation of the supply chain within the CPTPP is an important factor for Vietnam to further develop its economy and move up in the global value chain.
Meanwhile, Vietnam’s commitments in the CPTPP would put pressure on the country to improve its business environments, Minh added. The CPTPP would also play a vital role in creating an additional 20,000 – 26,000 jobs per year. A research conducted by the World Bank showed that the CPTPP is projected to reduce poor people by 0.6 million in Vietnam at the poverty line of US$5.50 a day relative to baseline conditions in 2030.
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.
