06/12/2018 16:04 GMT+7 Email Print Like 0

CPTPP, an opportunity for realizing the Viet dream

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which was just ratified by the National Assembly is a special opportunity for Vietnam to boost growth and realize its vision of prosperity.
Economist Pham Chi Lan recalled the time when she worked with World Bank specialists to make the Vietnam Report 2035 - Toward Prosperity, Creativity, Equity, and Democracy. “It took foreign and local experts a long time to study Vietnam’s 30-year renewal process (1986-2016) to set out a new goal for 2035,” Lan said.

The goal Lan mentioned is the aspiration for a prosperous society that will reach the upper-middle-income status. Vietnam’s market economy will be competitive and intensively integrated with the global economy while the potential and position of the country will be heightened.

Vietnam’s intensive integration into the global economy is crucial for the country in the future as it is striving for the upper-middle-income status with 50% of the population belonging to the middle class.

To reach the upper-middle-income status, which means an average income per capita of 7,000 US dollars, Vietnam will have to maintain an annual growth of at least 6-7%, experts estimated.

Ho Chi Minh City, a major economic hub of Vietnam. Photo: Nguyen Luan/VNP

Vietnamese Minister of Industry and Trade Tran Tuan Anh (first right) and representatives of member states
signed the CPTPP in Santiago, Chile on March 8, 2018.
Photo: AFP/VNA

 CPTPP is expected to bring economic benefits for Vietnam and generate millions of jobs. Photo: VNA

“To this end, the country should restructure its economy, renovate its growth model, increase productivity and effectiveness, and intensively integrate with the world,” said Prime Minister Nguyen Xuan Phuc. This means Vietnam needs to create an impetus for GDP growth rather than depending on mining and state investment like before.

The Government’s 2018 report estimates the import-export value will grow by 4.04% by 2035, and between 20,000 and 26,000 jobs will be annually generated thanks to CPTPP. Integration is a good way to realize the goal of a prosperous Vietnam.
Having been engaged with Vietnam’s CPTPP negotiations for nearly ten years, Deputy Minister of Industry and Trade Tran Quoc Khanh said Vietnam will reach higher growth if it can fully take advantage of the agreement. CPTPP will create indirect momentums for Vietnam to boost growth as it offers the country a chance to play in a larger field with bigger economies.

Due to tariff reductions, CPTPP may help raise Vietnam’s GDP by 4.7% by 2035, or an additional 10.5 billion US dollars, estimated Dr Luong Van Khoi, deputy director of the National Socio-Economic Information and Forecast Center.

The Government’s 2018 report submitted to the National Assembly also estimated that thanks to CPTPP, import-export revenues will grow by 4.04% by 2035 with the trade deficit most likely being restrained gradually. The agreement is also expected to bring Vietnam between 20,000 and 26,000 new jobs each year.

In the first half of 2018, Tien Giang province exported 1.27 billion US dollars worth of agricultural products,
footwear and garments. Photo: Minh Tri/VNA

 Nam Dinh province by September had 98 operating FDI projects,
with a total registered capital of 3.3 billion US dollars. Photo: Van Dat/VNA

Binh Dinh province had by September reached an export value of 587.8 million US dollars, up 11.5% .
Photo: Vu Sinh/VNA 

In the first nine months of 2018, Vietnam earned about 29.54 billion US dollars from
agro-forestry-fishery exports, up 9.3%. Photo: Vu Sinh/VNA

In the first seven months of 2018, the Mekong Fruit Company in Can Tho exported 700 tons
dried agricultural products worth 70 billion dong, up 15%. Photo: Vu Sinh/VNA 


Investment in Vietnam by 11 CPTPP member states accounts for around 25% of the total. Japan has the largest FDI (making up 41.5%), followed by Singapore (38.3%), and Malaysia (11.7%).

Experts agreed Vietnam needs a breakthrough to boost its growth and world economic integration is an important push.

Story: VNP - Photos: VNP,VNA & AFP