The Trans-Pacific Partnership (TPP) agreement "stimulus" Vietnam's GDP to increase by about $4 billion per year. Vietnam’s signing of the TPP is part of its effort to integrate into the world economy. Here’s the gist of an article by Prime Minister Nguyen Tan Dung on Vietnam’s preparations for opportunities and challenges the TPP will create.
Seafood processing for export in Tien Giang Province
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It also guarantees opportunities for member economies with different levels of development and businesses to benefit. The TPP respects each country’s political institution and recognizes the need to abide by national laws and international commitments.
Vietnam’s economy is not fully developed joining the TPP demonstrates the political will and vision of the Party and state and the strength of the Vietnamese people. New-generation FTAs will create momentum for socio-economic growth, particularly in attracting investment and boosting exports to major world markets including the EU, which has a GDP of US$18 trillion.
TPP commitments will help Vietnam develop its market economy, accelerate its restructuring, and change its growth model. Joining the TPP is also a new step in Vietnam’s implementation of its foreign policy in a region with increasing strategic competition.
Vietnam will face fierce competition at home and abroad at 3 levels: product, business, and nation, particularly in terms of institution and business environment. If businesses, after reorganization, fail to catch up, they will go bankrupt and their workers will lose their jobs. The agricultural sector and farmers will be the most vulnerable and the gap between rich and poor people will widen if Vietnam’s rapid, sustainable growth strategy is not effective.
TPP implementations requires Vietnam to adjust its legal system to improve its human resources. The state needs to stabilize the macro-economy, develop an appropriate legal and management system to create a transparent business environment to ensure business freedom and fair competition. Vietnam needs to continue fine-tuning its institutions and laws to conform to the market economy and FTA commitments politically and economically.
Efforts should be made to establish a state governed by law of the people, by the people, and for the people while accelerating the restructuring of state-owned enterprises and encouraging the development of the private sector The TPP respects the political regimes of each country, and includes a requirement to fully abide by countries’ laws in line with international commitments exclusive of defence and security terms. The Government leader added that the TPP, alongside a free trade agreement with the EU, will provide advantages and also create new challenges for Vietnam.
Such opportunities cannot turn into economic strength, interests and competitive edge in the market themselves. But through endeavours and the effectiveness of the targeted operation of the State, population and enterprises they can. Businesses determine the micro competitiveness and reflect the strength, as well as the competitiveness of the economy. The business sector be courageous and partake in the competition while taking the initiative in employing synchronous and drastic measures to raise the competitiveness of its goods and services.
The market makes decisions on the mobilisation, allocation and effective use of resources. Enterprises can do business in the fields that are allowed by law. They must improve their social responsibility and business culture. Meanwhile, through people and their representative occupational organisations and associations and independent researchers, the society can help make and supervise the enforcement of policies, thus helping reduce weaknesses of the State and the market.
To ensure success in international integration and the efficient implementation of FTAs – especially the TPP and Vietnam-EU FTA – it is essential to have resolutions from the Party and National Assembly, and specific action plans from the Government, ministries and business community. The importance of doing communication work effectively in order to create a consensus in consciousness and unity in action as well as making efforts to increase national competitiveness so as to develop the economy quickly and sustainably.
