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PM highlights pros and cons of TPP

Released at: 14:50, 17/02/2016

PM highlights pros and cons of TPP

In recent article, PM discusses the advantages and challenges facing Vietnam not only from the TPP but also other FTAs.

The TPP is set to facilitate trade and investment and benefit production, business, workers, and consumers, Prime Minister Nguyen Tan Dung wrote in a recent article.

The PM noted that the TPP provides comprehensive market access and ensures the freer movement of commodities, services, capital, and technology through commitments to remove export-import tariffs and non-tariff barriers. It also aims to create a fair and non-discriminatory business environment.

Recently signed by the 12 member states, including Vietnam, the agreement will promote the formation of new manufacturing and supply chains, facilitate internal trade, improve economic efficiency, support job creation, and increase incomes, thus dealing with the challenges of a contemporary economy.

The TPP respects the political regimes of each country and includes a requirement to fully abide by countries’ laws in line with international commitments, exclusive of defense and security, he wrote.

Alongside the free trade agreement (FTA) with the EU, the TPP will provide advantages and also create new challenges for Vietnam.

Such agreements add new momentum to socioeconomic development, especially in attracting investment and promoting exports with the world’s largest economies. This includes the 28-member EU, with its GDP of VND402,705 trillion and the 12-member TPP, with more than VND447,450 trillion in GDP. 

He underscored that joining these agreements marks new progress in pursuing a foreign policy of independence, self-reliance, multilateralization, and diversification of ties, improving Vietnam’s stature in the international scene.

Fierce competition will pose challenges and new pressures. Enterprises with poor performance in transformation and restructuring may stand on the verge of dispersal or bankruptcy.

Also, some workers may face unemployment, he added, noting that agriculture workers and farmers will be the most vulnerable.

The income gap will widen if the rapid, sustainable development strategy produces no effective results and people do not benefit from growth outcomes, he said.

Another obstacle lies with the process of implementation, from completing the legal system to personnel training and improving the capacity of officials and technical and legal experts.

The Vietnam General Confederation of Labor and the entire political system must gear up for new requirements on employment and trade union affairs.

The business sector needs to employ drastic measures to raise the competitiveness of goods and services while operating within the institutional framework and business climate set by the State, he noted.

A national administration institution will be decisive in macro competitiveness and the development of the economy; a fact proven through research and by reality.

The State must stabilize the macro-economy, build a legal system, and organize the management apparatus in order to create an open, transparent business environment and ensure business freedom and fair competition.

The market will make decisions on the mobilization, allocation, and effective use of resources. Enterprises can do business in fields permitted by law and must improve their social responsibility and business culture.

Meanwhile, through people, their representative occupational organizations and associations, and independent researchers, society can help supervise the enforcement of policies, reducing weaknesses in the State and the market.

To ensure success in international integration and the efficient implementation of FTAs, especially the TPP and the EU-Vietnam FTA, it is essential to have resolutions from the Party and the National Assembly as well as specific action plans from the government, ministries, and the business community.

The PM also emphasized the importance of communicating effectively in order to create consensus and unity in action, as well as increasing national competitiveness to develop the economy in a sustainable manner.

Source: Vietnamnews

  • TAGS
  • TPP
  • investment
  • benefit
  • multilateralisation
  • comprehensive market

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