Want to be in the loop?
subscribe to
our notification
Business News
CPTPP GOES LIVE IN VIETNAM
Today the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP, enters into force in Vietnam after going live on December 30, 2018 for six Pacific Basin countries, including Australia, Canada, Japan, Mexico, New Zealand and Singapore.
The deal is a sweeping accord that liberalises trade and investment in 11 economies in the Pacific Basin including Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
“While awaiting the outcome of the current trade truce, the CPTPP’s entry into force proves that the Vietnamese government determines to opt for the open, liberal and rules-based trading system,” said Pham Hong Hai, CEO of HSBC Bank (Vietnam) Limited.
According to Hai, the CPTPP is indeed comprehensive and progressive in how it facilitates trade and investment in the 21st century, as it tackles issues such as ecommerce and data protection.
Businesses are certain to benefit from greater clarity at a time of trade-policy turbulence – as well as from improved access to 500 million consumers.
The CPTPP will remove 95 per cent of the current tariffs on trade among the partners. Vietnam can expect to benefit immediately in trade, especially export activities, including elimination of textiles and footwear tariffs by the majority of CPTPP members upon entry into force.
Although the increase will not be considerable for countries with which Vietnam has already signed bilateral or multilateral trade agreements but for Canada, the impacts will be positive. Canada is the second largest market among CPTPP members with which Vietnam has yet had a bilateral trade agreement.
The country commits to cut 94.9 per cent of import tariff lines, or 77.9 per cent of its import turnover from Vietnam. For Mexico and Peru, the impact is positive because the import and export products of these two markets are complementary rather than conflicting with Vietnam.
Collectively, CPTPP members have a population of 500 million and account for 15 per cent of world trade and 13 per cent of global GDP. Ratification by the remaining members (Brunei, Chile, Malaysia and Peru) is expected to follow.
There is also an opportunity for other markets to join – China, South Korea and the United Kingdom have all expressed interest.
Not only will the CPTPP boost the trade of its members – it has been estimated that by 2030 exports in CPTPP countries will increase by more than 6 per cent, especially 8 per cent for Vietnam – but it may also lead to a shift in global supply chains as trade is rerouted to CPTPP countries, thanks to increased competitiveness from improved market access.
The implementation of the CPTPP will bring even more benefits over the next decade as duties on most remaining tariff lines are phased out. According to HSBC’s recent survey, nearly four in 10 (39 per cent) companies in CPTPP member countries including those in Vietnam believe that the agreement will directly or indirectly help their businesses.
“FTAs such as the CPTPP simplify import and export procedures and reduce the cost to trade. For example, the CPTPP provides for full cumulation, meaning that businesses in CPTPP markets can use inputs sourced from other CPTPP markets to qualify for preferential treatment within the region.
“With the CPTPP now in effect, there is no better time for businesses to raise their awareness and maximise the benefits that are on offer,” Hai stressed.
Source: VIR
Related News
BUSINESS ENVIRONMENT REFORM NEEDS FURTHER PROMOTION: EXPERT
Ministries, sectors and localities need to drastically improve the business environment, including improving the efficiency in implementing reform. That was the message from Nguyễn Thị Minh Thảo, head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management (CIEM).
MINISTRY ASKS CARRIERS TO DEVELOP FLEET OPERATION PLAN TO MEET SUMMER TRAVEL DEMAND
In a document sent to the Civil Aviation Authority of Việt Nam, the ministry said that the restructuring of some airlines’ fleet and flight networks, coupled with the recall of PW1100 engines by Pratt & Whitney for repair, have affected the load on both international and domestic flight routes, causing difficulties to passengers in terms of prices and schedules.
US AND VIETNAM BUILD MOMENTUM WITH UPGRADED TIES
In the six months since the historic upgrade of the US-Vietnam relationship to a Comprehensive Strategic Partnership, the United States and Vietnam have built on the momentum of our elevated relationship to advance bilateral cooperation across a range of areas.
LENDING SLOWDOWN THREATENS TO DELAY REAL ESTATE RECOVERY
Phan Duc Tu, chairman of BIDV’s Board of Directors, said, “Over the first 80 days of 2024, BIDV has disbursed loans totalling $18.95 billion to the economy. However, the figure is lower than its debt repayment of $19.55 billion. As of March 11, the bank’s outstanding balance contracted approximately 1 per cent compared with the end of 2023.”
PERFECT SPRINGTIME SIP AT LEGEND LOUNGE
Ho Chi Minh City, February 28, 2024 - The season of love dedicated to women has returned to the LOTTE HOTEL SAIGON, offering ladies impressive and sophisticated experiences. A highlight not to be missed at The Canvas seafood buffet restaurant is the masterpiece Lobster Ravioli. Visit Ottimo House to enjoy premium Italian cuisine prepared with Australian Wagyu beef. On Mondays and Tuesdays, Yoshino Japanese Cuisine Restaurant offers a 20% discount on sashimi. Discover the classy space and enjoy the new drinks available at Legend Lounge, including "Cherry Blossom Latte" and "Strawberry Afternoon Tea.". To end your self-love journey, Legend Healing Spa will be offering 20% off two special treatments.
VIETNAM RANKS IN TOP 5 FAVOURITE INVESTMENT DESTINATIONS AMONG ASIA’S EMERGING AND DEVELOPING COUNTRIES
The US' Milken Institute released the Global Opportunity Index (GOI) on March 5. The GOI remains a strong predictor of capital movements 10 years after its inception. The index alone explains 64.7 per cent of the variation in per capita foreign direct investment (FDI) inflows and 51.7 per cent of per capita portfolio inflows to countries across the world. The 2024 GOI report provides a global overview of countries' attractiveness and capital inflows.