Analysts say Vietnam’s economy is set to benefits from the TPP (Trans Pacific Partnership). With an appealing market for foreign investment and trade, and economic growth among the fastest in the Asia region. The country is poised to become a competitor to China.
Vietnam, as a middle income country, stands out from the TPP group that together account for 40 percent of global output, said Hanoi based World Bank economist, Sandeep Majayan. Among the key industries to gain from TPP membership include Vietnam’s textiles and garments as well as global supply chain operators, such as in telecommunications, able to take advantage of Vietnam’s close proximity to regional economic giant China.
But Vietnamese commentators hold fears for other economic sectors such as agriculture, seen as vulnerable from competition from major commodity exporters such as Australia.Analysts say the gains from the TPP will add further momentum to a generally positive economic outlook.
New foreign investment into Vietnam has also played a key role, especially by producers seeking an alternative to rising costs in neighboring China. Daniel Martin, a senior Asia economist with Capital Economics in Singapore, said strong export growth and foreign funds are now key drivers of growth in the economy.