Viet Nam’s exports to member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were expected to increase strongly through now to 2030, reaching 25 per cent of the country’s total exports, according to the Ministry of Industry and Trade (MoIT).
Shipments to Japan, the country's largest export market in the bloc followed by Canada and Mexico, have reached US$2.9 billion so far this year, up from $2.6 billion from the same period last year.
As many as 269 certificates of origin had been issued in the CPTPP since the trade accord took effect in Viet Nam in January this year.
These figures were reported by Ngo Chung Khanh, deputy director of the MoIT’s Multilateral Trade Policy Department, in a recent press meeting on industrial manufacturing and trade activities.
“219 of 269 certificates of origin were issued to Canada, demonstrating that Vietnamese exporters were utilising the CPTPP to penetrate Canada, one of the three countries that Viet Nam hasn’t signed free trade agreements with,” Khanh said, adding that 14 certificates of origin had been issued to Mexico and eight to Peru.
Viet Nam has yet to sign free trade agreements (FTAs) with three of the 11 CPTPP member countries – Canada, Mexico and Peru.
“In the medium and long term, Viet Nam will benefit more from the CPTPP when more countries join the agreement,” Khanh said.
The CPTPP is a trading bloc that represents nearly 500 million people with a combined 13.5 per cent gross domestic product (GDP)
The accord is an important milestone in Viet Nam’s global integration as it will promote export turnover, boost institutional reform and improve the business environment.
Total import-export turnover between Viet Nam and other CPTPP member countries reached nearly $74.5 billion in 2018, accounting for 15.5 per cent of the country’s total import-export value. Of which, exports reached $36.8 billion and imports were $37.7 billion, data from the General Department of Vietnam Customs showed.
Viet Nam enjoyed a trade surplus with Canada, Chile, Mexico, Australia and Peru, while suffering a trade deficit with Japan, Singapore, New Zealand, Malaysia and Brunei.
The Ministry of Planning and Investment has revealed Viet Nam’s exports to CPTPP countries would grow by 4.04 per cent by 2035 and reach $80 billion through 2030, making up 25 per cent of its total exports.
With 75-95 per cent of tariff lines being scrapped, export opportunities to the countries Viet Nam had yet to sign FTAs as well as members it was suffering a trade deficit like Japan and Australia were significant.
Khanh said extensive commitments in the trade, service and investment sectors would open more opportunities for Vietnamese businesses to compete in a more transparent and predictable business environment, expand and diversify import and export markets, especially for products and services.
In addition, new supply chains would be formed to raise the whole economy, increase labour productivity and enable businesses to participate in higher value-added production chains.
He added that the MoIT was working with the World Bank and the Australian Embassy in Viet Nam to build a web portal for FTAs, with the core being the CPTPP.
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