Vietnam preparing for opportunities and challenges created by TPP

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.

The TPP encompasses 40% of global GDP and 30% of global trade. This new-generation free trade agreement is expected to be a prototype for higher-level regional and global trade development in a time of rapidly growing production forces and extensive international integration.

Joining TPP, good vision

Prime Minister Nguyen Tan Dung said the TPP allows comprehensive market access, ensures free movement of goods, services, capital, and technology, creates an equal business environment, and facilitates trade and investment. The TPP will formulate new production and supply chains in the 12 member nations, stimulate growth, create jobs, increase incomes, and improve people’s living conditions. 

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.

Prime Minister Dung said that while 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.

Opportunities and challenges

Prime Minister Dung said 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.
 

Prime Minister Dung said 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.

Vietnam’s preparations

Prime Minister Dung called for greater efforts to increase economic competitiveness with businesses improving the competitiveness of their products and services. 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.

Prime Minister Dung said 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.