return icon Vietnamnet.vn

TPP a rose sprig with thorns

Vietnam may see its GDP increase by $26.2 billion in the period from the day the Trans Pacific Partnership (TPP) agreement is signed, slated for the end of this year to 2025.

VietNamNet Bridge – Vietnam may see its GDP increase by $26.2 billion in the period from the day the Trans Pacific Partnership (TPP) agreement is signed, slated for the end of this year to 2025.

 

{keywords}

The figure has been forecast by Professor Peter A.Petri from Brandeis University in the US, when he talked about the benefits Vietnam can expect when joining the TPP.

Especially, if Japan joins the agreement, the benefit Vietnam may get would be up to $35.7 billion.

In the latest news, Japan has expressed its willingness to join the negotiations for the agreement.

Le Dang Doanh, a well-known economist in Vietnam, said the biggest benefit to be brought by TPP is the possibility of increasing the exports once the tariffs are cut by the TPP member countries. Vietnam key export items such as garments, seafood and processed materials would meet less barriers when entering the export markets.

Dinh Hong Ky, President of Secoin, a construction material company, wishes to see the agreement to be signed soon, because it would bring big benefits to the company.

“The markets would be enlarged, while it’ll be easier to find partners,” he said. Though anticipating that the TPP membership would make the current competition stiffer, he still believes that TPP would do more good than harm, because it helps eliminate weak enterprises and facilitate the development of the national economy.

Meanwhile, the benefit Doanh can see is that TPP would help push up the ongoing reforms in Vietnam. “One of the reforms would be the one relating to the laborers’ rights,” he said.

Under TPP, laborers would have the right to set up unions, and the right to negotiate about the provisions of the labor contracts with employers. This would be contrary to the Vietnam’s Law on Trade Union, which would force Vietnam to make some amendments to make it suitable to the international commitments.

The admission to TPP would require Vietnamese policy makers to fulfill the legal frameworks to attract foreign investment capital.

However, as Doanh has noted, “all rose sprigs have thorns,” which means that Vietnam will not only get benefits from TPP, but also meet challenges as well.

According to East Asia Forum, a policy forum for researchers, the member countries are in disagreements in some key matters, including the intellectual property, e-commerce, state owned enterprises and the access to the garment market.

The source says the countries expect to finish the negotiations this year. However, as Japan has expressed its willingness to join the agreement, the negotiations would be more complicated.

“If Japan joins the agreement, the negotiations would last until 2014,” Doanh said.

It’s still questionable about the benefits Vietnam may receive for its textile and garment industry. Though this is Vietnam’s key export production, Vietnamese enterprises still have to import 75 percent of the input materials from China.

Meanwhile, under TPP, the tariff preferences would be granted to Vietnam, if it can prove that it uses the input materials sourced from TPP member countries.

According to Doanh, Vietnam has shown the list of some materials it needs to import from China and it has been awaiting for the approval of the TPP members.

The difference between WTO and TPP is that while WTO maintains some preferences for developing economies in the first periods after they join TWO, TPP would create a leveling playing field for all the members, with no discrimination about developed or developing countries.

DNSG

MORE NEWS

Sli singing - the soul of Nung ethnic minority people

Sli is a unique folk singing style of the Nung ethnic minority people in Vietnam’s northern region, which is performed as a call and response between young men and women.

Vietnam spends US$9 billion importing oil, petrol products in 2022

South Korea was the largest petroleum supplier of Vietnam, with 3.22 million tons, up 96% year on year.

Vietnam named among top food destinations by Gordon Ramsay

Vietnam's rich cuisine has made it a favorite culinary destination not only for Michelin-starred chef Gordon Ramsay but also for food lovers worldwide.

Hang Sao- a unique cave pagoda in Yen Bai

Hang Sao is one of the beautiful and sacred pagodas in Yen Bai, believed to be discovered in the reign of the sixth Hung King.

Vietnam has great opportunity to be a global production base

Vietnam is becoming a destination for global manufacturers, an opportunity that needs to be taken full advantage of.

Lai Chau ginseng: a hidden national treasure

Ethnic people in Lai Chau province have long used locally-grown ginseng to improve their health.

Late artist Nguyen Tu Nghiem’s works on display in rare exhibition

This rare opportunity for art lovers to see the artist’s works is being held to honour his career, which spanned over 70 years in the 20th and 21st centuries.

Authorities to boost implementation of OV-related tasks: official

Efforts will be accelerated in 2023 to implement tasks relevant to overseas Vietnamese (OV) affairs, said Deputy Foreign Minister and Chairman of the State Committee for OV Affairs Pham Quang Hieu.

Censorship council under pressure when approving films related to private life

Director of the Cinema Department Vi Kien Thanh said the censorship council bears increasing responsibility, especially when censoring films related to private lives.

Young VN talent awarded 2023 Clay Research Fellowships

Pham Tuan Huy, 27, has become only the second Vietnamese talent to receive an award from the Clay Mathematics Institute (CMI) which gives out various prizes and sponsorships to promising mathematicians from around the world.

AFC praises Park Hang-seo’s “lasting legacy” in Vietnamese football

The Asian Football Confederation (AFC) has published an article titled “Park Hang-seo: A lasting legacy”, to honour the Korean coach after his magical five year journey with the Vietnamese men’s football team.

Discovering pig slaughtering festival in Vietnam

A traditional pig slaughtering festival got underway in Nem Thuong village of Bac Ninh city, northern Vietnam, on January 27 as part of activities to celebrate the new-year period.

Prague Airport wants to open direct air routes to Vietnam

Prague Airport in the Czech Republic is planning to launch new direct air routes to North America and Asia, including Chicago (US) and Vietnam.

Mural village woos more visitors to Quang Binh

The coastal village of Canh Duong in Quang Trach district, central Quang Binh province, is known for its breathtaking natural scenery. But now, the 400-year-old village attracts visitors with its beautiful and unique murals.

Intertwined opportunities, challenges for Vietnam’s economy in 2023

With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.
back_to_top