The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to help Vietnam’s GDP and export expand by 1.32 per cent and 4.04 per cent by 2035.
In addition, it is seen as helping increase total job opportunities in Vietnam and cutting down non-tariff barriers to trade and investment in all CPTPP members, which will help ease business costs and risks in Vietnam and increase opportunities for enterprises to expand markets and diversify investment resources. CPTPP members have committed to remove 78 per cent to 95 per cent of import taxes as soon as the agreement takes effect. Many key exports such as agricultural products, seafood, shoes, garment and textiles, wooden products, electronics and rubber would enjoy zero tax immediately or a few years later.
Participating in the CPTPP helps Vietnam multilateralise economic and trade relations, avoiding risks due to dependence on some big markets. CPTPP would create opportunities for enterprises to export timber and wood-based products to boost exports when products such as plywood, picture frames, door frames and especially furniture which are subject to import duties of between six per cent and 9.5 per cent will be freed of these duties. Vietnamese garment and textile products which meet with common technical standards would enjoy a zero tax rate.