TPP - Agreement on the Trans-Pacific partners that Vietnam is one of 12 countries participating - the new standard agreements of the 21st century this Agreement towards a common economic area covering 40% of GDP bridge and about 25% of world trade.
Vietnam benefits can be obtained from TPP
Group benefits from exploiting overseas markets (TPP partner countries). Market interests in partner countries TPP that Vietnam can take advantage from TPP expressed in two main forms:
Benefits tariff (for trade in goods):
This benefit is presumed to have Vietnam is when goods are approaching these markets with lower tariffs or equal to 0. Thus the practical benefits that Vietnam goods will no longer be subject to high tariffs in the market because of the tariff is the question The only problem hindering the competitiveness of Vietnam's products on these markets.
As an economy, export orientation, that we can reach as large as the US market at the rate of 0 or Such low will bring a competitive advantage is enormous and a very bright outlook for many of our industries, brought about the benefits of a large department employees working in the field for export. When the reduced tariffs, Vietnam can increase exports of clothing, shoes and many other items which are its strength in the major markets, particularly the US market without having to compete with products khac.Loi countries benefits not only stop at the commodity groups that Vietnam has strong export (eg textiles, shoes ...), it's also a motivation to many groups face Other restaurant does not have a significant turnover have conditions for increasing competitiveness. In other words, this advantage not only from the perspective of the present, but also see potential in the future. Assessing the impact of TPP, the water level will lower development opportunities to develop stronger. In many quantitative studies of foreign experts, Vietnam is one of the major beneficiaries from the TPP countries (most countries benefit from 1-2 points% TPP, Vietnam own approximately 5%).
Benefits market access (for trade in services and investment)
Vietnam will have access to services markets of the partner countries more favorable, with fewer barriers and better conditions.
The group of mining benefits be in the domestic market (Vietnam)
In implementing the FTA, the domestic market is often understood as the place suffers. However, for the case of Vietnam, many experts insist that we can "profit" from TPP even in domestic markets, which are considered as "just suffer" from the FTA in general . "Paragraph word" lies in the following aspects:
- The benefit from the tariff reductions on imports from TPP countries: Consumers and the industry using raw material imported from these countries as raw material in will benefit from the goods, cheap raw materials, reduces costs and production activities, which may help improve the competitiveness of these industries,
- benefit from these investments, services provided by the United States and partner countries TPP: It's a business environment more competitive, providing cheaper services of better quality to consumers, the technology and new management practices for Vietnam and a working pressure for reform and for more progress for the domestic service units;
- The benefits come from the institutional changes and reforms to meet the demands of the TPP general: TPP expected will cover all the commitments on issues like harmonization through standard legislation, competitiveness, development aid problems small and medium-sized enterprises, supply chain, development aid ... This the long-term benefits and throughout the aspect of economic life - society, particularly significant for business group accounted for the largest proportion (small and medium-sized enterprises) and thus is very significant ;
- benefit from the opening up public procurement markets: Although the level of openness to public procurement markets in the TPP framework has not been specified but likely contents of the Agreement on purchase Public Procurement in the WTO will be applied to the TPP, and if this is the fact that Vietnam benefits gained from this will be promising transparency to this important market - TPP therefore can be a real good capacity to address the shortcomings in public procurement contracts and procurement activities from the current lack of transparency;
- benefit from the implementation of labor standards, environment: Even although basically the high demand for this issue may cause difficulties for Vietnam (especially the cost of implementing the State and compliance costs of companies) but thoroughly review some including standards (eg environmental) will be a good opportunity for Vietnam to make better environmental protection issues (especially in investment from the partner countries TPP) and protect domestic workers.
However, these benefits need to be evaluated in moderation, especially when deciding offs access Vietnam market of foreign goods in order to get these benefits. Specifically:
+ For other commodities, while increasing export opportunities for competition is real and very large (eg textiles and footwear), the barriers as technical regulations, sanitary Event epidemiological or trade defense with rules of non-market economies that the United States will most likely perform disable benefit from tariff reductions. Likewise the strict conditions of employment, regarding the origin of raw materials can also make commodities Vietnam does not take advantage of the tax benefit from the reduction in the TPP.
In other words, the benefits of tariffs on TPP market partner countries (especially the United States) only really complete when considering all factors. And if any element of the barriers to exports not improved, the benefits from TPP tariffs will be reduced, even if these barriers are abused, benefit from tariff can be disabled completely. Plans for negotiations on tariffs so need to pay attention to all these factors.
- The benefits of market access (for trade in services and investment)
Vietnam theory will be access to markets services of the partner countries more favorable, with fewer barriers and better conditions. Yet in fact the service of Vietnam has virtually no significant investment in capacity due to foreign service providers of Vietnam businesses are weak. In the future, this situation may change slightly (with the effort in software exports, telecom investment or some other service areas) but this possibility is relatively small.
In addition, with the current state of relatively wide opening of the service with key partners in the TPP as now, this benefit may not make sense (by presence or absence of the TPP market their services already open then). This is also the reason many argued that developing countries would benefit service in the TPP while countries like Vietnam almost no benefit from this.
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