Vietnam Academy Of Social Sciences

Impacts of Comprehensive and Progressive Agreement for Trans-Pacific Partnership on Vietnam

11/06/2019

Ngo Van Vu, Vietnam Social Sciences Review,

Vietnam Academy of Social Sciences.

 

Abstract: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially came into force on 14 January 2019 for Vietnam. Vietnam is the 7th  country approving CPTPP, which took effect for the first six other countries (Mexico, Japan, Singapore, New Zealand, Canada, and Australia) on 30 December 2018. The agreement creates a huge free economic region with a market scope of 500 million people and covers 13.5% of the global Gross Domestic Product (GDP).  After  the  enactment  of  CPTPP,  the  Vietnamese  economy  will  experience  multi- dimensional impacts (both positive and negative). The visible negative impacts involve the legal and  institutional  environment,  competition,  commodity  trade,  banking  and  finance, and a liberalised public procurement market.

Keywords: International integration, free trade agreement, global trade. 

Subject classification: Economics

 

1. Introduction

In February 2016,  the Trans-Pacific Strategic Economic Partnership Agreement (TPP) was officially signed among 12 member states, including Australia, Brunei, Canada,  Chile,  Japan,  Malaysia,  Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.  At  the  end  of  2016,  after  Mr. Donald Trump won his presidency, the US officially withdrew  from  the  agreement in accordance with his new policy. After the withdrawal of the US from the TPP, the 11 remaining countries continued their promotions and agreed to sign TPP-11 on 8 March 2018 in the Chilean city of Santiago, and  reached  unanimity  on  the  agreement’s new name, CPTPP. Fundamentally, this new agreement retains the core contents of TPP. However, it has more than 20 points (mainly stiff  commitments  on  intellectual  property which  were previously put  forward  by the US)  temporarily  postponed  in  comparison with  TPP.  Specifically,  11  out  of  the  20 provisions are related to intellectual property and strongly protect the rights of invention owners. For example, the CPTPP will delay requesting its member states to change their laws and common practices to protect new medications,  including  biological  products, from the competition with generic drugs. The agreement  also  suspends  the  regulation  on extending the copyright time if it is due to the lateness  of  license  authorities  or  irrational postponements in licensing the copyright and  permitting  the  import  of  some  medication into member states. Member states of CPTPP will not have to extend the copyright protection from 50 to 70 years. In addition, CPTPP adds regulations on the withdrawal from, accession to and review of the CPTPP in the future (to create its flexibility and be ready for the accessions of new members). In fact, countries such as the UK, China and the Republic of  Korea (South Korea) are thought to be in the process of considering their accession to CPTPP.

Among the 11 member states of CPTPP, Vietnam is in the list of countries with the least economic development (in contrast to highly developed countries such as Japan, Singapore, Australia, and New Zealand). Vietnam has a fledgeling  market  economy  and  still  lacks experience  in  organising  and  managing  a fully-developed economy. Notably, Vietnam’s scientific  and  technological  development  is also  rather  low  among  CPTPP  countries. Nevertheless, joining in the agreement is a new  and  crucial  milestone  of  Vietnam’s global  economic  integration  and  helps  the country to be ready for a straightforward and impartial  competition  with  other  members. This paper will analyse the opportunities and challenges of the Vietnamese economy after the enactment of the CPTPP and recommend some solutions.

 

2. Opportunities

CPTPP is a comprehensive agreement which covers all principles of trade, investment, intellectual property, and others. The agreement will put pressure on the  reforms  of  the  investment  and  trade environment,  open up many opportunities for  the  development  of  enterprises  and promote  the  socio-economic  development of Vietnam.

Firstly, CPTPP will promote institutional  reform and business environment consolidation  for  enterprises. It  sets  high standards in terms of  institutions, state management quality as well as legal frameworks. Joining in CPTPP will make contributions to the institutional  reform, moving towards international “rules of the game”. This is a necessary condition  for growth and  a positive driving force to develop the country. The institutional reform will help the whole society to boost the competitiveness, mobilise and tap factor endowments within the country at their full potentials, and utilise better external resources. CPTPP will also encourage and promote domestic reforms  in  numerous fields such as services, customs, e-commerce, government procurement, intellectual property, investment, legal issues,market access for goods, principle of origin, non- tariff measures, and so forth. Through member  states  of  CPTPP  (countries with highly-developed economies and complete legal  systems),  Vietnam  will  study  and exchange  experience  to  finalise  its  legal system as well as the mechanism of market economy management and operation.

Accordingly, the agreement will help Vietnam to promote the economic restructuring and state-owned enterprise reform and reorganisation; strengthen the reform and simplification of administrative procedures; create the connectedness among ministries and sectors to improve the business environment competitiveness and boost the cooperation  between  home  and overseas enterprises.

Secondly,  the  CPTPP  will  create  the driving  force  for  economic  growth.  The Foreign  Direct  Investment  (FDI)  of  the CPTPP member states, especially of investors from big countries such as Japan, Australia, New Zealand, Canada, and Mexico, will continue to flow into Vietnam. By receiving increased FDIs, Vietnam will have the opportunity to  improve   the economic development and people’s living standard, while expanding sectors and areas that Vietnam desires to develop. This is also the opportunity for Vietnamese enterprises, especially  big  ones,  to  seek  investment markets in other CPTPP member states.

According to the research of the Ministry of  Planning and  Investment,  the agreement will also help Vietnam to benefit quite greatly from the country’s export with a total increased turnover of more than 4%, equivalent  to  about  USD  4  billion.  The export will increase mainly in CPTPP member  states  at  a  rate  of  14.3%  (the progressive consumption to 2035), equivalent to USD 2.61 billion. Meanwhile, the export to non-CPTPP countries will go up by 1.7% (USD 1.4 billion) [12]. In conclusion, the implementation   of   the   agreement will enable Vietnam to expand its export markets and utilise advantages in markets with which Vietnam has not had Free Trade Agreements (FTAs) in the past yet such as Canada, Mexico, and Peru.

Thirdly, the CPTPP  will  create new business opportunities and expand markets for Vietnamese enterprises. Upon the enactment of the CPTPP,  member  states have exempted export taxes (or the export tax  may  be  reduced  to  0%)  for  66%  of commodities, and this figure will be 86.5% in three years with a set roadmap. This will offer new business opportunities to enterprises and expand their export market to big names within the CPTPP bloc such as Japan, Australia, New Zealand, and Canada.

With strong commitments on tariff reduction, the CPTPP will generate benefits for many manufacturing industries in Vietnam, especially for the  textile and footwear and leather  ones.  For  instance, with the market of Canada, the tariff on all textiles from Vietnam was removed right at the  time  that  the  agreement  took  effect. According  to   statistics   of   the   Vietnam National   Textile   and   Garment   Group (Vinatex), the import turnover of textiles of Canada in 2017 reached USD 13.86 billion with     only     USD     814     million from Vietnamese products, accounting for 5.9% of the market share. The import turnover of textiles of Australia in 2017 was USD 9.01 billion  with  only  USD  256  million  from Vietnamese  products,  occupying  2.8%  of the  market  share.  The  textile  industry  of Vietnam  thus  has  many  opportunities  for  export  expansion  [5,  p.2].  The  CPTPP  is also   the   opportunity   for   footwear   and leather export enterprises to increase their share and possibilities to export products to potential markets that Vietnam has not had FTAs  yet  such  as  Mexico,  Canada,  and Peru. For Japan, one of the major markets of Vietnam’s footwear  and leather export industry, the export of Vietnamese handbags can grow, on average, by 20-35% per  year.  If  Vietnamese  enterprises  know how to utilise the provisions of the  agreement, this growth rate will be even  higher  than  it  is  at  present.  Aquaculture products   are   major export   goods   of Vietnam.   In   the   CPTPP,   the   products (except for canned tuna and fish meatballs) originating from Vietnam will be free from import tax right after the agreement’s enactment  or  the  following  three  years. Therefore, Vietnamese aquaculture products for export will achieve quite a good level of market access in CPTPP countries.

 

3. Challenges

Firstly,  there  are  challenges  in  legal  and institutional frameworks. The CPTPP requires a highly transparent and competitive environment.  To  honour  the  agreement’s commitments,  Vietnam  will  have  to  adjust and  revise  some  legal  regulations  such  as those on trade, customs, intellectual property, and   labour. In the recent international economic integration, Vietnam has actively finalised the legal framework, amended and supplemented some new important laws such as the Law on Competition (2004), the Law on Commerce (2005), the Law on Intellectual Property  (2005),  the  Law  on  Conclusion, Accession to and Implementation of Treaties (2005), the Law on Lawyers (2006, revised in 2012),  the  Law  on  Bankruptcy  (2014),  the Law on Enterprises (2014), and the Law on Investment (2014). However, the implementations of these laws are still slow and fail to satisfy the high requirements of the international  integration  in  general  and  the accession  to  the  CPTPP in particular.  The system of regulations in Vietnam is overall less  developed  than  that  of  other  CPTPP member states. Hence, the alignment of the regulation  system  in  Vietnam  with  that  of other parties is a real challenge [9, pp.5-6].

One recognisable issue in the institutional reform, as well as investment and business environment improvement recently, is the fact that the Government has continuously removed many conditions for business and licenses. Administrative procedures  have also been simplified  to stimulate  enterprises. Therefore, it is not how many licenses or business conditions have been cut that matters. The bottom line falls on the operation and the human factor, which can make real institutional changes rather than simply reducing.

Secondly, challenges in competition and trade in commodities. With the accession to the CPTPP, the Vietnamese economy will be under huge competitive pressure posed by   the   goods   of   ten   other   countries, especially  the  hi-tech  products  of  Japan, Australia, and Canada,  which will stream  into  Vietnam.  Vietnam  is  a  country with agricultural  strengths.  However,  in  some sectors  such  as  pig  and  poultry  raising, agricultural and mining products for export, the qualities of cash products are not high with higher prices in comparison to other CPTPP member states, which is due to the sporadic  and small scale of goods production, low labour productivity, limited application of scientific advancements, and the reliance on imported materials. This is quite a big challenge that Vietnam has to face.

According to the evaluation of the Ministry of  Planning  and  Investment,  the  import  from  countries  within  the  CPTPP bloc does not show a great increase, which mainly belongs to the importers outside the bloc. Vietnam will continue its dependence on imports from some traditional countries such as China and South Korea. This means that Vietnam may not benefit much due to the regulation   on   the   origin   in   the agreement. One of Vietnam’s strengths is the textile industry, but its materials often fail  to  ensure  the  requirements  on  the  origin.  Vietnamese  enterprises  must  shift  their  sources  of  materials  from  countries which  are  not  signatories  of  CPTPP  to Vietnam or one country within the bloc.

In   the   implementation   of   CPTPP’s commitments, it is noteworthy that the flow of imported goods from member states into Vietnam  surges  with  competitive  prices while  the  technical  barriers  of  Vietnam either   do   not   exist   or   are   not   tough. Therefore,  goods  in  the  domestic  market will  be  in  a  disadvantaged  position.  For example, there are now many kinds of high- quality rice from Thailand and Japan in the Vietnamese market, occupying great shares [9, p.6]. For main products  such as  ones from  exporting  textiles  and  footwear  and leather  industries,  the  CPTPP  requires  its member   states   to   meet   regulations   on proving that their materials must originate from the bloc and not using materials from a third country outside CPTPP. For instance, although  Vietnam’s  textile  industry  is  a major export industry, 75% of its materials are imported from China. Because Vietnam’s    supporting    industry    is    still underdeveloped, many other manufacturing industries share the same story and are not beneficiaries of tariff incentive policies.

Thirdly, challenges in the revenue, operation of the banking system, and restructuring of state-owned enterprises. To honour  commitments of the CPTPP, Vietnam must reduce its export tax, which can decrease the revenue but will not leave any sudden impacts on the CPTPP member states  because  seven  out  of  ten  countries have signed FTAs with Vietnam (only three countries   with   moderate   trade   capacity, namely Canada, Mexico, and Peru have not had FTAs with Vietnam yet). Although the  accession   to   the   agreement   will   create certain  limits  for  the  liberalisation  of  the banking  market,  conditions  to  access  the market in this sector will be gradually lifted. This  can  be  likened  to  a  challenge  for developing countries in general and Vietnam in  particular.  Despite  some  progress,  the Vietnamese  banking  system  still  exposes many vulnerabilities (high amounts of bad debts, poor management capacity, numerous inadequacies in risk management at banks and others). By early 2016, there have been 9,673  branches  and  transaction  offices  of commercial  banks  all  over  the  country. Banks   strongly   develop   the   systems   of Automated Teller Machines (ATMs), Point of   Sales   (POSs),   internet   banking,   and mobile   banking   channels.   However,   in comparison with some regional and global countries,   the  accessibility to banking services in Vietnam is still   not up to expectation, with an uneven distribution of branches and transaction offices.

The State revenue has shown a positive development over the past years; however, its  structure is not sustainable. The domestic  sources  were  increasing  slowly owing to the economy’s inefficiency. The State revenue sources neither originate from the results of production and trade nor the efficiency  of  economic  transition.  Some unstable revenues  sources  such as  selling crude oil, collecting import tax, and selling or leasing land, cause the State revenue to be   sensitive   to   global   economic   and political situations, e.g., the price of crude oil in the international market. On the other hand, the management and operation of the State   revenue   collection   still   need   to improve with the occurrence of tax invasion and lost tax revenue.

In 2018,  the  operation  of  the  banking sector   had   gained   praiseworthy  results. However,  from  an  objective  perspective, the sector restructuring has remained slow as shown in the result of nominal bad debt treatment. Economic experts conclude that in order  to process the restructuring efficiently, the whole banking system must operate  very  healthily  and  transparently and comply strictly with the law, thereby developing standard banking products and services. Recently, some cases in the banking system have caused public discontent   such   as   money   lost   in   the clients’ accounts or scams related to staff or officers of the banks. Those cases prove that the restructuring of the banking system in Vietnam is still stagnating. In addition, the risk management in banks within the country  still  shows  many  shortcomings. Some  banks  have  weak  capacities  and violate principles of corporate governance and risk management. The asset quality of the banking system develops in a negative direction. Many banks possess low rates of capital. Some banks even have lower rates than the regulated one (9%) from the State Bank of Vietnam. Estimatedly, the capital adequacy   ratio   of   the   whole   banking system only stands at 8.5%, which is rather low   in   comparison   with   neighbouring countries  such  as  China  (11%),  Thailand (15.7%) and the Philippines (15.2%) [9, p.7].

Progress made in the restructuring, especially of the banking sector and state- owned enterprises, is disproportionate. The project  of equitisation and  divestment  of enterprises in ministries and sectors approved  by  the  Prime  Minister  in  the period  from  2016  to  2020  is  very clear. According to the set plan, 85 enterprises, including 21 transferred from the 2017 list and 64 in the 2018 list, must finalise their equitisation within 2018. Nevertheless, by the end of 2018, only 19 enterprises have been   successfully   equitised   with   three enterprises (An Giang Urban Environment Company, Vietnam Television Cable Corporation  and  Dong  Thap  Petroleum Trading Import and Export JSC) in the list of equitised enterprises in 2018. The State divestment  in  enterprises  has  proceeded well   behind   schedule. In pursuant to Decision No.1232/QĐ-TTg, 135 enterprises must proceed with     their divestment in 2017, but this only happened in 17 enterprises. In 2018, 181 enterprises must proceed with their divestment, but the divestment  was  only  conducted  in  ten enterprises at the end of the year [1, p.7]. According to the report of the Ministry of Finance, in the first two months of 2019, no  enterprises  were approved  to  proceed their equitisation by competent authorities yet,  and  there  have  not  been  any  state- owned enterprises proceeding their divestment either.

Meanwhile, in accordance with the plan in 2019, 18 enterprises must complete their equitisation, and 62 enterprises must complete their divestment [13]. One of the main   reasons   slowing   the   process   of equitisation and State divestment down is that  the  leaders  of  enterprises  which  must carry out their equitisation and representatives of  owners  of  economic  groups  and  State corporations   do   not   comply   with   the Government’s  stewardship  of  equitisation and divestment in state-owned enterprises. In  addition,  they  are  not  active  to  make advice and proposals to the Prime Minister within their     authorities to address difficulties and inadequacies in equitisation and divestment and often tend to wait for the  task  transfer  to  the  Committee  for Management of State Capital in enterprises.

Fourthly, challenges in the liberalisation of  the  public  procurement  market.   For Vietnam,  the  liberalisation  of  the  public procurement market (or Government procurement) is completely new and only emerges in the process of negotiation and signing of CPTPP and FTA with the European  Union  (EU).  However,  at  the international  level,  new-generation  FTAs are all in close linkage to the liberalisation of the public procurement market.

In accordance   with   the   agreement, principles and procedures in the selection of contractors must be highly impartial, public and   transparent. Vietnam will have to organise the selection of contractors within the  CPTPP  member  states  (tender  within the CPTPP bloc) or international bidding, which allows CPTPP countries to take part in. Investors  shall  treat  contractors  and goods of Vietnam as well as contractors and goods of other CPTPP member states fairly.

For Vietnamese enterprises, the liberalisation of the public procurement market will create disadvantageous impacts due to the penetration of foreign contractors, which domestic contractors can never beat. On the contrary, the possibility to access and win the bid of domestic contractors in the public procurement market of partners in the CPTPP is almost zero due to constraints in their  competitiveness.  In  the  long  run, if Vietnamese enterprises refuse their renovation  and  still  rely  on  “relationship” and “patronage”, the possibility of winning bids of Vietnamese enterprises in the public procurement market will also be narrowed down,  thereby  reducing  their  employment and market share. The biggest challenge at present  is the fact that Vietnamese contractors have to compete fairly and do genuine business.

Fifthly, challenges in enterprises. The CPTPP requires governments to treat enterprises from member states  fairly  and allow them to participate in the purchase of goods,    provide    services to and sign construction contracts in projects of the restructuring of   state-owned   enterprises. Enterprises   relying   on   State   subsidies, exploiting outdated production and business technologies, using and administering capital ineffectively will face various difficulties (even bankruptcy) and increase the  number of unemployed people.

However, this is just a local and short-term negative impact.

In addition, human resources are also an government;  while requesting that issue causing difficulties to enterprises. The governments   not   show   a   discriminatory attitude towards foreign enterprises in order to create a level playground for all kinds of enterprises. This is a huge disadvantage for Vietnamese enterprises when their production and business are not efficient with inadequate potentials to compete fairly with enterprises from Japan, New Zealand, or Australia.

CPTPP member states commit to implementing high requirements of environment, labour, competition and others and procedural constraints  in regulations related to technical and sanitary and phytosanitary barriers. Accordingly, the community of enterprises has to face a wide range of pressure such as ensuring requirements of origin within the bloc and intellectual  property  protection,  reducing the tax rate, overcoming technical barriers  and  the  plant  sanitation  and  quarantine system, and competing in the context that their  market  share  is  decreased  right  in Vietnam. Vietnamese enterprises encounter hardships  with  such  export  products  as beef, pork, sugar, processed food, consumer chemical products, and cars.

By its accession to the CPTPP, Vietnam  must successfully proceed  with the attraction of foreign investments into Vietnam will create pressure of increasingly fierce competition. Enterprises which have a good management system,  modern equipment and the same high specialisation as  foreign  enterprises  can  withstand  the competition.  Weaker  enterprises  will  be involved in a fierce competition in terms of the labour force because foreign enterprises have preferential policies and offer a higher salary to attract high-performing workers.

 

4. Solutions for Vietnam

Firstly, the State needs to specify regulations stipulated in the 2013 Constitution, review the legal system (such as the Law on Tax, the Law on Customs and the Law on Commerce) for continued amendment and supplementation to match commitments in the CPTPP and continue to  review  the  operation  of  markets  (labour, land,  security  markets,  and  others)  and factors of production and business to ensure their sufficient, synchronous operation which are in close linkage to legal norms and   respond   to   commitments   in   the agreement. The Government needs to make more  efforts  in  the  institutional  reform, improve   the   investment   and   business environment, create good opportunities for the community of enterprises to work side by side with the Government and take part in   the   policy   reflection,   administrative procedure reform and commitment codification. The reflections of enterprises will  help  the  Government  to  gradually finalise the institution and policies to better support for the community of enterprises. Moreover, the Government needs to develop a   “tectonic,   action-oriented   government”, restructure  the   state  apparatus   from   the central  to  local  levels  towards  compact organisation and efficient     operation, downsize    the    personnel,    improve  the expertise   of   civil   servants,   develop   a contingent  of  professional  civil  servants with good political quality and occupational ethics  to  meet  the  requirements  of  the international integration.

Secondly, the State needs to promote the implementation of commitments on economic reform and restructuring of the economy  with  priorities  over  three  core areas, namely public investment, finance, and enterprises and agricultural restructuring. This is an ever-more pressing requirement in the current context of integration. The State  needs  to  continue  stabilising  the macroeconomy, coordinate synchronously fiscal  and  monetary  policies  as  well  as exchange rate policies. Vietnam needs to liberalise capital transactions at a certain extent,  appraise  projects  carefully  using foreign capital, and monitor the rotation of short-term     capital     flows    and    capital transactions in the security market closely. In  addition,  Vietnam  needs  to  gradually  open  the  capital  market  to  international investors   in   line   with   the   integration schedule, ensuring international commitments and  the  alignment  with  the  ability  to monitor and manage the investment capital of foreign investors [2, p.33]. State-owned enterprises  must  drastically  proceed  the restructuring, in which the equitisation and divestment need to be speeded up to keep pace with the approved timeline and give priorities   over   seeking   their   strategic investors. In addition, the State needs to promote   the   bond   market,   especially corporate bonds, further.

Thirdly, the State needs to strengthen the communication  and  dissemination  of  the CPTPP to enterprises and people in  each sector and field; so, that they can have clear and adequate awareness of contents committed in the agreement. Together with promoting the communication and dissemination, the Ministry of Industry and Trade needs to collaborate with provinces and   centrally-run   cities   nationwide   to provide information about commitments in the CPTPP by each specific area. Based on that ground, people and the community of enterprises   will   actively   identify   their  business   strategies   and   objectives   and quickly adapt to and meet requirements set in the new context. In addition, they will select  crucial  sectors  and  products  with comparative advantages to promote export and deeply participate in the supply chain of big corporations in the Asia-Pacific region.

Fourthly,  the  State  needs  to  develop solutions to respond to negative impacts of the agreement, paying priorities over major industries,  which  are  most  likely  to  be affected.  For  example,  it  is  necessary  to develop the supporting industry to reduce the import of materials from other countries for the textile industry and raise the quality to   satisfy   committed   standards   for   the  industry  of  aquaculture  products.  State- owned enterprises need to have a plan to assist workers who lost their jobs in terms of insurance and vocational training. For the labour area, it is indispensable to continue improving  the  laws  on  labour  to  fit  the practice and development of Vietnam, while moving towards international standards on labour;  facilitate  enterprises  to  access  to, accept and implement commitments of the CPTPP   and   develop   a   plan   to   apply scientific  and  technological  progress  and provide   training   to   create   high-quality human resources for each specific area and the corresponding level.

Fifthly, Vietnamese enterprises need to re- evaluate themselves to find out their strengths and weaknesses exposed recently and contrast with conditions and standards of the CPTPP, and clearly identifies the operations which  should  be  developed  or  narrowed down in a flexible manner that matches each specific  enterprise  and  product.  Enterprises need  to  actively renovate and  improve the quality and value of products, establish links from production, distribution to consumption and  export and formulate supply chains to create a strong position in regional and global supply chains. To meet the requirements of product origins, enterprises need to formulate a plan for shifting the import of materials from   non-CPTPP   countries   to   member  states   and   develop   their   own   material manufacturing factories instead of importing from countries, which are not beneficiaries of the agreement’s incentives. At the same time, enterprises  need  to  boost  their  research, invest in equipment and facilities, improve the administrative  capacity and  utilise opportunities for development.

Sixthly,  enterprises  need  to  focus  on developing and training human resources as well as receiving technologies, science and techniques as well as advanced management experience from other countries. At the same time, it is necessary for enterprises to actively search information about commitments related to their sectors and fields, thereby developing a standard system of food quality and safety and improve the product quality most effectively.

Seventhly, enterprises need to establish their brands and improve their competitiveness as well  as  the  ability  to  expand  markets  and develop product trademarks. Although Vietnam has quite many products with huge export  turnover,  very  few  possess  brand names which are renowned or characterise Vietnam. A pretty lively demonstration for this point is the fact that Vietnam is one of the top  rice  exporters in the  world  at the absence of famous brand names; meanwhile, some  brand  names  such  as  “Jasmine”  or Basmati characterise their production countries (Thailand, India and Pakistan) in the world market.

Eighthly, Vietnamese enterprises need to abandon the old way of doing business and reform  their  activities  to  keep  up  with modern trends. The CPTPP  sets stringent regulations on the environment, labour or  intellectual property protection. That renovation is also the inevitable development  trend  of  a  modern  healthy  and  civilised business environment.

 

5. Conclusion

The accession of Vietnam to the CPTPP has strongly  shown  the  country’s  policy  of active international integration and affirmed the important role and geo-political position of Vietnam in the international community. The  agreement  has  officially taken  effect for   Vietnam.   Joining   in   the   CPTPP, Vietnam will have numerous opportunities; yet, face many challenges. To ensure that the implementation of the agreement goes smoothly  and  most  effectively,  Vietnam needs to develop an action programme for the CPTPP, coupled   with   a   specific assignment in each ministry and sector. At the same time, the community of Vietnamese enterprises needs to thoroughly understand  commitments  in  their  sectors, innovate   their   technologies,   reduce   the manufacturing costs, improve the quality of products, enhance the competitiveness not only in the export market but also in the domestic one, expand the cooperations with foreign partners and engage more deeply in the global supply value chain.

 

Notes

1 The paper was translated by Vu Xuan Nuoc, edited by Etienne Mahler.

 

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[6] Lê Minh Thông (2014), Hội thảo: Quốc hội với việc đàm phán, kỷ kết và thực hiện các Hiệp định Thương mại Tự do (FTA), ngày 15 tháng 4. [Le Minh Thong (2014), Workshop: National Assembly Negotiates, Signs and Implements Free Trade Agreements (FTA), dated 15 April].

[7]   “TPP - Hiệp định thương mại tự do của thế kỷ 21”,  Báo  Nhân  Dân 10  năm 2015. [“TPP - Free Trade Agreement of 21st Century”,   Nhan   Dan   (People)   Newspaper, dated 8 October 2015].

[8]   Anh Vũ (2015), “TPP - Cửa đã mở”, Báo Nhân Dân, ngày 19  10. [Anh Vu (2015), “TPP – Door  is Opened”, Nhan Dan (People) Newspaper, dated 19 October].

[9]   Ngô Văn Vũ, Lê Thị Thúy (2016), “Tham gia TPP: Thách thức và giải pháp đối với nền kinh tế Việt Nam”, Tạp chí Khoa học xã hội Việt Nam, số 4. [Ngo Van Vu, Le Thi Thuy (2016), “Joining in TPP: Opportunities and Challenges for  Economy  of  Vietnam”,  Vietnam  Social Sciences Review, No. 4].

[10] Ngô  Văn  Vũ  (2018),  “Cơ  cấu  lại  doanh nghiệp nhà nước ở Việt Nam hiện nay”, Tạp chí Khoa học xã hội Việt Nam, số 10. [Ngo Van Vu (2018), “Restructuring of State-owned Enterprises  in  Vietnam  at  Present”,  Vietnam Social Sciences Review, No. 10].

[11] Mạnh Hùng (2018), Cơ hội  thách thức với Việt Nam sau khi Hiệp định CPTPP có hiệu lực,  http://tapchitaichinh.vn,  truy  cập  ngày  15 tháng 12 năm 2018. [Manh Hung, Opportunities and Challenges for Vietnam after Enactment of CPTPPhttp://tapchitaichinh.vn, retrieved on 15 December năm 2018]. 

[12] Thái Linh (2018), Tác động của CPTPP đến các ngành kinh tếhttp://nhandan.com.vn, truy cập ngày 15 tháng 12 năm 2018. [Thai Linh, Impacts   of   CPTPP   on   Economic   Sectorshttp://nhandan.com.vn,      retrieved on  15 December 2018].

[13]  Hà Anh (2019), Thu Ngân sách Nhà nước 2 tháng đạt 17,5% dự toán nămhttp://www.cpv.org.vn, truy cập ngày 8 tháng 3 năm 2019. [Ha Anh, “State Revenue in Two Months Reaches 17.5% of the Year's Estimation”,   http://www.cpv.org.vn, retrieved on 8 March 2019].

 

Sources cited: Vietnam Social Sciences, No. 2 (190) - 2019

 



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