VietNamNet Bridge - One of the issues to be discussed during US President Obama’s visit to Vietnam on May 23-25 is the Trans Pacific Partnership Agreement (TPP). 

According to Vo Tri Thanh, deputy head of the Central Institute of Economic Management (CIEM), the US wants Vietnam to approve the TPP this July. The US is the country which sets the rules of the game, and since it is a powerful, it can give support to Vietnam.

In TPP, Obama would ask Vietnam to be more active in legal issues related to TPP. 

“The TPP membership will not only bring positive impact, but will also require Vietnam to pay a price, and Vietnam has to prepare for this,” Thanh said.

“The US is a developed country and it will surely support Vietnam. And in reality, it has been and will support Vietnam in implementing TPP,” he said.

One of the issues to be discussed during US President Obama’s visit to Vietnam on May 23-25 is the Trans Pacific Partnership Agreement (TPP).

According to Thanh, TPP comprises commitments on the opening of the financial service market with more openness compared with WTO commitments. 

“There would be expansion and rapid development of some production and business fields. This would lead to high demand and opportunities for overseas remittance, investments, financial investment, merger and acquisitions, etc,” Thanh said.

To date, only two US banks have made investments in Vietnam, includng CitiBank, which just got the nod from the State Bank of Vietnam to establish a 100 percent foreign owned bank last July.

The other is Morgan Stanley, one of the world’s largest financial institutions which serve clients such as the government, other financial institutions and individuals. The bank has invested in Vietnam through investment funds. 

Will the Vietnamese financial market receive a big capital flow from the US following US President Obama’s visit?

Nguyen Tri Hieu, a renowned financial expert, thinks the US financial circle will make investments in Vietnam provided that Obama visits Vietnam and affirms that TPP will be ratified by the US Congress.

“Only when TPP is approved will this have big impact on US financiers. At present, the Vietnamese market is too small, while Vietnam’s GDP is modest with just $205 billion in 2015. The investment opportunities here are small,” Hieu explained.

Hieu also noted that Vietnamese laws are not fully consistent with international practice, while the way of doing business followed by Vietnamese enterprises is not the one followed by international businesses, which makes US investors more reluctant to invest.

“However, if TPP is approved, the US financiers will make heavier investment in Vietnam, because they can expect changes which will facilitate their investments,” Hieu commented.


Nguoi Dong Hanh