[KNOWLEDGE] – What is CPTPP? How to make good use of CPTPP?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), built after a process of negotiations between 11 members, has brought the agreement back to life with a new version of the Trans-Pacific Partnership (TPP).

What is CPTPP?

CPTPP stands for "Comprehensive and Progressive Agreement for Trans-Pacific Partnership" which means Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Vietnam is one of 11 countries honored to be present in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP Agreement for short.

CPTPP with 11 member countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam), accounts for 13.4% of the total global GDP and covers nearly all markets 500 million people with a total trade turnover of more than 10 trillion USD, will become the third largest economic association globally, after the North American Free Trade Agreement (NAFTA) and the European Union (EU).

Vietnam joins CPTPP Agreement

The predecessor of the CPTPP Agreement is the TPP Agreement (Trans-Pacific Partnership Agreement) established in 2008 with the participation of 7 countries. A year later, Vietnam joined the TPP Agreement as a particular observer.

In November 2010, Vietnam announced becoming an official member of the TPP Agreement after going through 3 negotiating sessions at the APEC Summit held in Yokohama (Japan). The CPTPP Agreement is a change and improvement from the TPP Agreement.

What does Vietnam do to take advantage of opportunities from CPTPP?

According to the assessment of domestic and foreign economic experts, Vietnam will still receive many benefits when the CPTPP is implemented. However, to take advantage of the opportunity, the Government and Vietnamese enterprises themselves need to make great efforts.

The CPTPP will also create pressure to promote strong reforms in domestic economic institutions, according to the high standards of investment, intellectual property, public procurement, etc. mentioned in the commitments. Accordingly, with commitments on investment and the opening of stronger service markets, the CPTPP is expected to strongly promote foreign investment in Vietnam, while also helping to compete in many service markets. , especially in production services, promises to bring higher quality and more reasonable prices to people and businesses using the service.

Some benefits that Vietnam has:

- Promote export development

- Elevate the economy by participating in regional and global supply chains

- Growth of economic sectors

- Solve employment problems, raise national income

In order to take advantage of opportunities not only in the CPTPP, but businesses also need to constantly update upcoming economic and trade agreements in the future as well as market changes, in order to devise strategies and decisions for business growth. In addition, Indochina Holdings introduces trade promotion services. Determining the wishes as well as the difficulties that businesses are facing, Indochina Holdings’ team of consultants will offer specific strategies based on the capabilities of the business to help businesses confidently bring Vietnamese products to customers to the international market.

Thanh Long