Việt Nam has officially become the seventh member of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) after all National Assembly (NA) deputies on Monday approved a resolution on the agreement.
According to NA’s external relations committee chairman Nguyễn Văn Giàu, it is a key political decision that confirms Việt Nam’s strong ability to integrate with the international community, respond to the developments of the global economy, and progress with other free trade agreements.
The CPTPP trade pact, which was signed by Việt Nam and 10 other economies in the Asia-Pacific region on March 8, 2018 in Chile, came after the US withdrew from the Trans-Pacific Partnership (TPP) deal in early 2017.
The CPTPP pact, which succeeds the TPP deal, had been in talks for eight years, Giàu said. “Six nations have passed the deal and the trade pact will come into effect within 60 days from October 30, 2018.”
Most NA deputies supported the trade pact and their approval of the CPTPP deal during the 6th NA meeting was appropriate, showing Việt Nam’s commitment to the development of the regional and global community, he said.
According to experts, Việt Nam’s approval of the CPTPP could help the nation reform and improve its legal system, better its business and investment environment, and raise the economy’s competitiveness in global markets.
The industries that are expected to benefit from CPTPP trade include textile and garment, fishery, wood processing, logistics, transportation and real estate.
However, there are potential risks that Việt Nam could encounter, including a more competitive domestic market as cheaper imports would surge into the country.