The impact of the comprehensive and progressive

trans-pacific partnership agreement on Vietnam's

exports in the period of 2019-2020 
 TABLE OF CONTENTS
01 Abstract 05 Results

02 Introduction 06 Discussion

03 Literature review 07 Conclusions

04 Method 08 References
Abstract

On November 12th 2018, the Vietnamese National Assembly ratified joining the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),
which has 11 members. In this article, we investigate the impact of the comprehensive
and progressive trans-pacific partnership agreement on Vietnam's exports in the period
of 2019-2020. The results show that with the participation of the CPTPP, the average
growth in Vietnam’s export turnover will increase by 8.3% in 2019. The paper also
show the opportunities and challenges of Vietnam joining CPTPP then suggests
solutions to take advantage of opportunities to increase export turnover and export
quality and efficiency Vietnamese goods in the context of participation in CPTPP
Introduction
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, referred
to as the CPTPP Agreement, is a new generation of free trade agreement (FTA),
consisting of 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia,
Mexico, New Zealand, Peru, Singapore and Vietnam.

CPTPP is considered as a new generation FTA, which is committed at a very high

level. Many Vietnamese products have strengths that can be effectively exported to
these regions such as textiles, footwear, phones, and seafood

The CPTPP agreement has an important meaning in promoting the reform of the
investment environment - especially in the export of goods to the global market.
Literature view
In recent years there have been domestic and international research projects that
explored the potential behind utilising new generation FTAs for the development of
Viet Nam's import-export.

The issue above has been raised in many articles. But up to now, the urgency and
clarity have been reduced at some point. In summary, By using statistical, description,
and data collection, this paper will help you to have a detailed, clearer, and urgent view
about the impact of CPTPP on exports of Vietnam. From the updated data, this paper
also give more reasonable and applicable in future.
Methods

1. The questions of research

This research will answer the following 3 questions :

(i) What is Vietnam's export situation before and after joining the CPTPP
agreement?

(ii) What are the opportunities and challenges of the CPTPP after joining the
CPTPP agreement?

(iii) How to improve export qualification measures?

Methods

1. The methods of research

In the research, we have used qualitative research methods: The study uses
statistical, descriptive and synthetic methods to assess Vietnam's export
status when joining CPTPP, including turnover, tariff barriers.
Regarding data sources, we synthesized from sources of the Ministry of
Industry and Trade, the General Department of Customs in the period from
2015 to 2022. In addition, in the research, some secondary information
from the internet and research articles.
Results
Current situation of Vietnamese exports before
joining CPTPP (2017)
Export turn over
Figure 1: Vietnam's export
turnover, import turnover,
trade balance of goods in
2005-2017

Source: General Department of Customs

Current situation of Vietnam after joining CPTPP
 
Trading turn-over between Viet Nam and CPTPP countries by the end of
September 2018
 
Trading turn-over
Although there are only 10 trading Countries Export Import
Brunei 8,8 million USD 27 million
partners, the total value of trade Canada 2,2 billion USD
USD
676 million
USD
turnover between Vietnam and Chile 611 million USD 231 million

CPTPP members reached more Malaysia 3,099 billion USD

USD

5,56 billion

than 67.33 billion USD in USD

Mexico 1,702 billion USD 989 million
2017,accounting for 15.84% of USD

Japan 13,728 billion USD 13,87 billion

the total value of import USD

Australia 2,989 billion USD 2,731 billion

and export turnover of the country. USD

Peru 193 million USD 71 million

last year. USD
New Zealand 361 million USD 398 million
USD

Singapore 2,332 billion USD 3,595 billion

USD

( Source : Ministry of industry and trade )

 Current situation of Vietnam after joining CPTPP
Process Taxes For example some items
decrease 0%

Taxes I.
 
2019 for Mexico
 
6.884
Some types of raw poultry: fresh or
chilled fish, certain types of lignite,
peat, sticky rice, some fruits like
Regarding the preferential export tax for longan, tamarind

implementing the CPTPP

I. 2019 for Australia,   Some fruits such as :
Agreement, the preferential export tariff includes 519 Canada, Japan, New 6.888 Pears, cherries
tariff lines; the items not included in this Preferential Zealand, Singapore,
2020 for Mexico
Export Tariff will be subject to the 0% preferential
export tax when they are exported to member countries I. 2020 for Australia,   Certain types of animal meats such
as bovine fresh, chilled or frozen,
Canada, Japan, New  
where the CPTPP Agreement has taken effect. In Zealand, Singapore 6.996
unsweetened ice cream and yogurt,
citrus, water pumps
2021 for Mexico
order to enjoy the
preferential export tax rates, exported goods must I. 2021 for Australia,   Sheep, poultry, legumes, wooden
Canada, Japan, New 9.110 furniture
have transport Zealand, Singapore
documents and import declarations indicating 2022 for Mexico

destinations in the territory Chocolate candy, peanut butter,

I. 2022 for Australia,  
of member countries where the CPTPP Agreement has Canada, Japan, New 9.178 tomato sauce
Zealand, Singapore
taken effect.
( Source : Ministry of industry and trade )
 Oportunities when joining CPTPP

01 02 03 04
Institutional Create
reform, creating Create a Create more opportunities
a favorable driving force opportunities for to increase
business for economic Vietnamese growth
environment growth businesses
 Expected challenges when joining
CPTPP
01 02 03 04

The challenge The

The social
The economic of completing challenge of
challenge
challenge the legal and budget
institutional revenue
framework.

05 06
Challenges in the field of
The challenge in the labor
information safety and
sector
security
Discussions
Causes of difficulties

01 02 03 04
Difficulties Difficulties Difficulties of The capacity of
in culture, due to protectionism, Vietnamese
language, competitive high standards enterprises to
politics pressure in imported participate in
markets international trade
 Solutions

01 02 03 04
Improve the Promote Attach importance to attracting Promote the
FDI inflows for the
country’s legal trade development of processing,
development of the
system and economic promotion manufacturing, raw materials logistics service
management activities producing industries, promoting sector
institutions supporting industries
Solutions
05
Enterprises need to have an overview of the agreement, not only find out
information on areas directly related to their production and business activities.
Besides, enterprises also need to change their business thinking in the new
foreground, taking competition pressure as the driving force for new changes
and development
Conclusions
In general, the CPTPP agreement has a positive impact on the Vietnamese
economy in the long term. The benefits are not only increasing exports but also
increasing the technological content of exports. Increased investment thanks to the
potential benefits of the CPTPP could make exports less dependent on imported
materials, and instead rely more on domestic supply chains to overcome the
limitations of export rules. This response will help promote the export of value-
added goods, encourage domestic private companies to more actively integrate
into the global value chain and thus promote the development of the medium and
small business sector. However, the increased investment is not without cost.
Taking advantage of the advantages and overcoming the disadvantages of the
CPTPP Agreement, Vietnam needs to come up with wise policies to choose
advanced technologies and environmentally friendly foreign investment flows to
optimize the impact of this agreement.
 THANKS
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