The Vietnam TPP Agreement: What It Means for the Country and the World
The Trans-Pacific Partnership (TPP) Agreement was a trade agreement aimed at reducing barriers to trade and investment between the participating countries. Negotiations for the TPP began in 2008 and were concluded in 2015. However, the agreement was never ratified by the United States, and in 2017 President Trump announced the country`s withdrawal from the agreement. Nevertheless, the remaining 11 countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, which is a revised version of the original TPP. This article explores the Vietnam TPP Agreement and its implications for the country and the world.
Vietnam was one of the 12 original signatories of the TPP Agreement. The country saw the agreement as an opportunity to boost its economy and increase exports to other countries. By joining the TPP, Vietnam aimed to eliminate tariffs on its exports to the participating countries, which would make its goods more affordable and competitive. According to the Peterson Institute for International Economics, Vietnam was expected to be one of the biggest beneficiaries of the agreement, with an estimated increase in its GDP of 8% by 2030.
The Vietnam TPP Agreement was also seen as a way to attract foreign direct investment (FDI) to the country. With the elimination of trade barriers, foreign companies would be more inclined to invest in Vietnam as a way to gain access to its markets. The agreement also contained provisions that aimed to improve intellectual property rights, labor and environmental standards, and transparency in government procurement. These measures were designed to create a more favorable business environment in Vietnam and to increase confidence among investors.
However, the Vietnam TPP Agreement was not without its challenges. One of the biggest concerns for Vietnam was the impact of the agreement on its labor force. Vietnam has a large number of low-wage workers, and there were fears that the agreement would lead to increased competition from other countries, resulting in a decrease in wages and job losses. To address this issue, the agreement contained provisions that aimed to improve labor standards and protect workers` rights. However, it remains to be seen whether these measures will be effective in practice.
Another concern was the potential impact of the agreement on Vietnam`s state-owned enterprises (SOEs). Vietnam has a large number of SOEs, which are often inefficient and operate at a loss. There were fears that the agreement would lead to increased competition from foreign companies, resulting in the bankruptcy of many SOEs. To address this issue, the agreement contained provisions that aimed to promote competition and reduce barriers to entry. However, it remains to be seen whether these measures will be effective in practice.
In conclusion, the Vietnam TPP Agreement was seen as a way to boost the country`s economy and attract foreign investment. While the agreement contained measures aimed at protecting workers` rights and promoting competition, there were concerns about the potential impact on Vietnam`s labor force and state-owned enterprises. With the United States` withdrawal from the agreement, the remaining 11 countries signed the CPTPP, which is a revised version of the original TPP. While the exact impact of the agreement on Vietnam remains to be seen, it is clear that the country is committed to opening up its economy and attracting foreign investment.
