The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up multiple opportunities for Vietnam’s export industries.

Markets of the eleven economies participating in the agreement offer great opportunities for many Vietnamese export items. This includes furniture, garments and footwear. Specifically, with zero import tax tariff, the CPTPP is expected to bring great opportunities for the lumber industry, as once the CPTPP is implemented, 95 tariff lines will be reduced to zero. For that reason, timber enterprises will benefit from importing raw materials from markets such as Canada and Japan which are in the CPTPP. And while exporting products within the bloc they will also enjoy the zero per cent tax rate. In addition, the benefit of zero import tax is also a great opportunity for businesses to cut their costs for renewing machinery and equipment by 20 per cent to 30 per cent. Growth opportunities await the textile sector too.

However, there are challenges. The CPTPP with commitments on market opening can also result in considerable competitive pressure for enterprises. The detailed and complex conditions of CPTPP’s rules of origin would be another obstacle for businesses. The CPTPP includes commitments on labor, environment, intellectual property, etc. that could increase the cost for businesses.