11 ministers pose for photo with Chilean President Michelle Bachelet (Source: VOV)

The CPTPP, a revised version of the TPP, underwent a long and difficult negotiating process. Vietnam and several other countries made important contributions to reviving the deal following the US’s withdrawal early last year. The ministers from the 11 remaining TPP member countries agreed to advance TPP and rename it CPTPP at a meeting in Da Nang last November. The new agreement was signed in Chile last Thursday.

CPTPP reflects Vietnam’s extensive integration

After the signing of the CPTPP, a new-generation free trade agreement, other developed countries, including the US, said they are interested in joining. As a CPTPP member, Vietnam has taken a step forward in its policy of international integration, and diversification and multilateralization of trade ties. Vietnamese Minister of Industry and Trade Tran Tuan Anh said: “Globalization has brought greater trade protectionism, populism, and separatism, though trade liberalization and facilitation remain the mainstream. In this context, Vietnam has consistently and strategically implemented an international integration policy. Our past achievements and experience in economic opening have made us confident of the success of this policy.”

Vietnam’s new level of integration

The CPTPP reflects a new level of international integration for Vietnam. As a founding member, Vietnam has sought to benefit. As Minister Tuan Anh puts it: “Politically and diplomatically, we have confirmed our rising stature in multilateral and bilateral political forums in the region and the wider world. The CPTPP will provide conditions for us to improve our law-governed state and our more competitive economy based on transparency, publicity, and facilitation of trade activities in accordance with market economy principles.”

The agreement is associated with Vietnam’s trade and institutional reform benefits. Practical, immediate benefits will be seen by Vietnam’s garments, leather footwear, food processing, and agriculture sectors, which are vitally important to the national economy.

Vietnam set to capitalize on CPTPP

The best time for the deal to take effect would be late this year or early next year, to boost the reforms of each member country and benefit their businesses and people. Minister Tuan Anh said: “After the signing of the CPTPP, the Ministry of Industry and Trade is assigned to craft an action program, which will be submitted to the National Assembly. Following the Assembly’s ratification of the deal, our action program will be issued, indentifying tasks, including a legal review, to fulfill Vietnam’s integration commitment.”