News Details

Minister of Industry and Trade: TPP will bring many benefits to Vietnam

28.01.2016

On 5/10/2015, after the Conference of Ministers of Trade of the countries participating in the negotiations Trans-Pacific Partnership (TPP) complete the negotiations in Atlanta, the Minister of Industry and Trade Vu Huy Hoang an interview with the News Agency of this historic agreement.

 

 

- Dear Minister, the TPP negotiations are finished, ask the Minister said about the process of implementing the next TPP towards Vietnam in the coming time?

After the conclusion of the negotiations, countries will conduct a legal review procedures in preparation for the formal signing and start the competent authorities approved the Agreement. This process normally lasts a minimum of 18 months. This is also the time for the participating countries forward with the necessary conditions to be able to perform well Agreement.

On our side, on the basis of mutual agreement between TPP countries, the Ministry of Trade and the government negotiating delegation will formally announce the full text of the TPP agreement for public consultation and in cooperation with the ministries and branches reviewing the implementation and ratification of agreements signed Law, joining and implementing international treaties. Also, due to the importance of the TPP, the expected agreement will be reported to the Party Central Committee for the directive before beginning the process of ratification of the Agreement.

 

 

Government has the steering to the ministries concerned in close coordination to quickly complete the draft report of the Central Executive Committee. As stated, the time ratification is also a time for us to prepare the necessary work, which focuses on adjusting the legal system, reform administrative procedures, capacity building competitive to take advantage of opportunities and overcome challenges while TPP effect.

- TPP is a free trade agreement multilateral large scale, so x in the minister said about the impact of TPP to Vietnam, Vietnam will benefit how from this Agreement and the field will be impacted negatively?

TPP will bring many benefits to Vietnam, in particular:

In economic terms, as calculated by the independent economic expert, TPP will help Vietnam's GDP increased by 23.5 billion dollars in 2020 and 33.5 billion in 2025. X thriving export will increase 68 billion in 2025.

It is noteworthy that the major markets like the US, Japan and Canada decreased to 0% import tax would help create "pushing" big for export activities of our country. The important export sectors such as textiles, footwear, seafood ... more likely to have walked the boom in exports to these markets.

Also, join the TPP will help us get new opportunities from new supply chain formed after TPP effect. TPP countries accounting for 40% of GDP and 30% of global trade, to include major markets such as USA, Japan, will certainly open up many opportunities to supply chain formation. In addition, the commitment of TPP investment service and is expected to have a positive effect in improving the investment environment, contribute to attracting foreign investment.

Institutionally, as well as participated in World Trade Organization (WTO), join the TPP will be an opportunity for us to continue to improve institutions, including institutions of market economy, one of three breakthrough strategies that have defined our party; support the innovation process model of growth and restructuring of our economy and help us with the opportunity to perfect the business environment to be more liberal, transparent and more predictable, since which promote investment both domestic and foreign investors.

In particular, the improvement and strengthening IPR protection will open opportunities to attract investment in sectors with high knowledge content, such as pharmaceutical manufacturing, including bio-medicine ( especially with the vaccine and some products have significantly grown in the past year).

In addition, the TPP with very high standards of governance and conduct transparent objectivity of the state apparatus will help us continue to improve the socialist law-governed State; improve organization promoting the streamlined, clean and strong; promote administrative reform; strengthening accountability, discipline, discipline and anti-corruption, waste and bureaucracy.

In social terms, participants TPP will create opportunities to enhance growth. Consequently, will create more jobs, increase incomes and contribute to poverty reduction. Economic growth also helps us to have more resources to improve the quality of human resources and health care community.

Since imports from the US and other countries with our TPP FTA no majority is not direct competition, so if there is a reasonable tariff reduction schedule, combined with the improvement of social security system, we can handle social problems arising from participation TPP. Especially, because the TPP including commitments on environmental protection should the process of opening, liberalization of trade and investment will be made in a way to be more environmentally friendly, help us increase more sustainable growth. However, participation in TPP also poses some particular challenges for Vietnam.

Economically, the biggest challenge is competition, especially in the livestock sector. Although Vietnam has strengths in many areas of agriculture, but our competitiveness in several industries are not really good, such as livestock. It is expected that this will be the most difficult sectors when committed TPP effect. For other sectors, competition can also occur but not great extent because of the current economic structure TPP exports complementary rather than competitive with structure export items of Vietnam.

On building laws, institutions and high standards of governance and conduct transparent objectivity of the state apparatus will pose major challenges for the management apparatus. However, these are the standards that we are heading to the State to build a socialist rule, really the people, by the people and for the people, with the staff and employees have a quality, energy , discipline, discipline.

In social terms, increased competition joining TPP could make some businesses, primarily businesses still rely on subsidies from the State, enterprises manufacturing technologies and business communications Conditions fell into difficulty (even bankruptcy), has brought about the possibility of unemployment in a division of labor will occur. However, because most of the economies in the TPP does not compete directly with us, so except for a few agricultural industry, this impact is expected to be localized, minor scale and indicative Short-term.

- Vietnam realize the benefits and the negative effects from the TPP, so Vietnam needs to do to minimize the negative impacts above said Minister?

To minimize the negative impact that Vietnam should pay attention to some issues such as:

In agriculture, Vietnam will have to make a reasonable effort, to turn challenges into opportunities for innovation growth pattern and restructuring economy, which attaches special importance to the agricultural restructuring, reorganization produce, promote scientific and technological applications, switching to the business model farms, large plantations to reduce production costs, easier management of quality, food safety and hygiene, as well as ease of installation use of biotechnology in the field of cultivation, farming, animal husbandry, in accordance with the development strategies in agriculture.

Institutional, to the implementation of commitments in the TPP, Vietnam will have to adjust, amend some laws on trade, investment, procurement, intellectual property, labor, the environment ... However, as experience has shown to WTO, with serious preparation and intensive efforts, we can successfully implement this workload, especially as we are entitled to follow the roadmap.

In social terms, with new opportunities gained from TPP, we will have the conditions to create new jobs, help economic restructuring to the industries we really have a competitive advantage. In addition, the State should also take measures to actively support timely handling negative effects may occur while the organization of retraining the workforce. With time, attracting increased foreign investment, the production structure will be adjusted and new jobs will be created.

- In fact, it is still quite a large gap between VN development and other TPP member countries, so we will have to do to narrow this gap?

With Vietnam, we took the initiative and actively integrate quite some time. We were joined ASEAN in 1996, joined BTA with the US in 2001, the Agreement with Japan BIT 2003, joined the WTO in 2007 and followed by a lot of free-trade agreements ( FTA) with many countries in the region and around the world. Most recently, in 2015, we signed another 2 FTA with South Korea and the Eurasian Union, the end of FTA negotiations with the EU.

Thus, we can say, Vietnam is no longer a stranger to international economic integration. Although the level of development in Vietnam is still a gap compared with TPP countries and some commitments in this agreement is quite new to us, as in the areas of labor, environment, intellectual property intellectual property, government procurement, state enterprises, etc ....

Besides, in fact, guidelines and policies of the Party and State also is looking forward to an effective public administration, transparency, predictability, consistent with the fundamental principles of all agreements international regulations so we join TPP is fully consistent with the principles and orientation of international economic integration of the Party and State.

Participation in TPP with high standards also help accelerate the process of rebuilding the economic entity, promoting economic mechanisms oriented market, including issues of business restructuring State industry. These policies are consistent with the goals and standards of the TPP. Therefore, we were not entirely too passive when implementing the standards of the TPP.

 Naturally, there are high standards that Vietnam and the countries with low levels of development in the TPP needs more time to improve, modify laws, procedures, processes, training and capacity building enforcement officers.

For these areas, Vietnam will apply the appropriate transition period, received technical assistance from more developed TPP countries to ensure to a certain point, we can be ready implementing, applying equal standards TPP developed countries.