The Trans-Pacific Partnership (TPP) may be signed on February 4 in New Zealand, according to Nguyen Quynh Nga, deputy director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade.
Nga said the Vietnamese negotiation group was preparing documentation for the signing.
The negotiation for the TPP was completed in 2015 but to be formally signed, it must be adopted by the major countries involved, like the US and Japan.
In the US, the TPP has caused mixed opinions as it will affect some protected sectors in the country.
Representatives of the Ministry of Industry and Trade said that the integration commitments would help Vietnam open the markets for goods and services, reduce commercial barriers and investment protectionism, and make policy transparent.
Not only the TPP but other free trade agreements (FTAs) with South Korea, the European Union and the Asean Economic Community (AEC) will expand trade relations between Vietnam and other countries and promote export growth. It will enhance Vietnam’s participation in regional value chains, and also help develop the services sector and restructure the economy.
The FTAs are have caused more foreign investors to be interested in Vietnam in 2016.
However, deeper global integration requires the Vietnam economy to be prepared to avoid adverse shocks.
We can see that the lowering of tariffs under the FTAs will cause reduced budget revenue from import duties. There will also be pressure from stronger economies in commodities, labour force and high-quality technology.
The key industries that are currently protected in Vietnam, such as agriculture and sugar will need time to adapt before the barriers are removed completely.
Enterprises in the private sector will also face difficulties caused by FTAs.