The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is likely to accelerate Vietnam’s reforms to tap opportunities and tackle challenges, said Minister of Industry and Trade Tran Tuan Anh. A Ministry study showed CPTPP can help the gross domestic product and export expand by 1.32 per cent and 4.04 per cent respectively by 2035, he said. He said this at a conference on CPTPP and market development in Can Tho recently.

The trade pact can help raise job opportunities in the country by 20,000-26,000 every year, according to a report by a Vietnamese news agency. According to the World Bank, the agreement may help Vietnam reduce the number of poor by 600,000 by 2030. It will also ease business costs and risks in the country and increase opportunities for enterprises to expand markets and diversify investment resources.

As CPTPP members committed to remove 78-95 per cent of import taxes as soon as the agreement took effect, many key exports like agricultural products, seafood, shoes, garment and textiles, wooden products, electronics and rubber would enjoy zero tax immediately or three to five years later, said Luong Hoang Thai, Director of the Ministry’s multilateral trade policy department.

To improve competitiveness of small and medium enterprises (SMEs), he said the government needs to provide adequate information to SMEs, creating an equal business environment, satellite businesses and new regional supply chains.