Vietnam’s participation in the TPP as a founding member will help improve Vietnam’s position in the region and the global market.
On the economic front, the TPP will help Vietnam increase its GDP by US$23.5 billion by 2020 and US$33.5 billion by 2025. Faced with public doubts about Vietnam’s ability to compete with large economic rivals, Vietnam’s participation in the TPP is for the sake of national interests and industry. The results of the negotiations were harmonious and acceptable.
Therefore, Vietnamese businessmen have enough ability to face new challenges. Vietnam has joined the WTO in 2007 and has made preparations in advance and is fully capable of participating in the TPP.
In terms of exports, the United States, Japan, Canada and other major countries have reduced their import tariffs on Vietnamese goods to zero, which will stimulate the export of Vietnamese products. The export volume of textile and garment products will grow significantly. It is calculated that US$1 billion in textile and garment exports will provide approximately 250,000 different employment opportunities.
It is estimated that the overall export value will increase by US$68 billion by 2025. Vietnam’s trade with the United States, Japan, and Australia is all in surplus and complementary, and exports will increase more than imports.
The reduction in import tariffs among the 12 TPP member countries is based on the reduction in product prices. However, whether the price of goods actually decreases depends on factors such as purchasing power and inflation. In addition, the TPP will not interfere with the domestic issues of member states, including their own taxes and fees. Therefore, the governments of each member state still have the right to maintain these funds.
In terms of investment, several large foreign companies and groups have considered investing in Vietnam, with the goal of turning Vietnam into an important link in the canal and other production chains; Vietnam’s participation in the TPP will help accelerate the development of this trend and provide a An important condition for Vietnam to enter a new high-tech development stage.
Vietnam may be the country that enjoys the most benefits among the 12 TPP members. However, in addition to smooth conditions, Vietnam’s goods trade also faces challenges and risks. Exports of agricultural products will face huge difficulties, especially pork and chicken. Certain industrial products in which TPP member countries have advantages, including paper, steel, automobiles, etc., have also caused difficulties for similar products in Vietnam.
Since the proportion of Vietnam’s import tax revenue is decreasing year by year, the abolition of import duties as scheduled will basically not have a sudden and huge impact. In addition, although import tax revenue has decreased, the tax revenue generated by the development of production and operations has increased, which can not only make up for import tax revenue, but also increase the national budget. Vietnam may be the country that enjoys the most benefits among the TPP members
