(VOVWORLD) - The Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) officially took effect on December 30, 2018. The pact establishes one of the world’s biggest free trade areas – 500 million people and 10 trillion USD in GDP, 13.5% of global GDP. Vietnamese exporters are expected to benefit from the pact.
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The CPTPP will reduce almost all tariff lines, 66% of them down to zero percent. Experts say Vietnam’s apparel, leather shoes, and bag sectors will benefit the most. Nguyen Phi Long, a member of the National Assembly’s Committee on Economic Affairs, said: “CPTPP membership will create new advantages for export. We can learn from other countries how to expand markets and build trademarks. We should select our best products to be sold in the global market.”
The CPTPP includes specific and specialized regulations. Enterprises must thoroughly understand and try to meet those regulations to enjoy tariff incentives. Tran Huu Phuoc, Director of the Tran Hiep Thanh Textile Company, said: “We have been training our human resources since April. We have worked with foreign companies with experience in management, human resource development, technology, and finance to rebuild our factory’s assembly lines and management.”
Nguyen Quoc Tuan, General Director of the Vinh Thong Footwear Company, said: “We will conduct trade promotions in CPTPP member countries. We want to study their technology and market demand to determine the best approach.”
It’s estimated that Vietnam’s exports to CPTPP countries will increase 4%, about 4 billion USD. Tariff incentives will help Vietnamese businesses grow faster and will contribute to national growth, job creation, and standard of living.