DNVN - In the coming time, trade exchange between Vietnam and CPTPP member countries, especially the three countries Canada, Mexico and Peru, has much room for positive growth and opens up new cooperation space...
Impressive growth
Vietnam's trade with the Americas region in general has recorded positive growth after 5 years of implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
At the international conference with the theme "CPTPP Agreement: Strengthening economic and trade cooperation with American partners" on October 2 in Hanoi, Mr. Ngo Chung Khanh - Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that in fact, after 5 years of implementing CPTPP, what Vietnam expected is bringing very positive results.
Statistics from the General Department of Customs show that total import-export turnover in 2023 will reach 137.7 billion USD, of which Vietnam will export 114.5 billion USD.
Vietnam's total import-export turnover to CPTPP markets in the Americas increased by 56.3%, from 8.7 billion USD in 2018 to 13.6 billion USD in 2023, despite this being a challenging period such as the global economic recession and the COVID-19 pandemic.
Vietnam's total import-export turnover to CPTPP markets in the Americas increased by 56.3%, from 8.7 billion USD in 2018 to 13.6 billion USD in 2023.
Of which, Vietnam's exports to these markets nearly doubled, from 6.3 billion USD in 2018 to 11.7 billion USD in 2023. Trade surplus in these markets also nearly tripled, from 3.9 billion USD to 11.01 billion USD.
In particular, trade between Vietnam and three American countries with which Vietnam did not have FTA relations when negotiating CPTPP, namely Canada, Mexico and Peru, grew quite well.
Mr. Alejandro Negrin Munoz - Mexican Ambassador to Vietnam shared that trade between the two countries has recorded impressive growth, with exports increasing 10 times in the past 5 years. 97% of bilateral trade is Vietnam's exports to Mexico, while only 3% of Mexico's exports to Vietnam. There is still much room for bilateral trade between the two countries.
Ms. Patricia Ráez Portocarrero - Ambassador of the Republic of Peru to Vietnam informed that the trade turnover between the two countries in 2023 reached 700 million USD, in the first 7 months of 2024 it reached 434 million USD - an increase of 5% over the same period. Despite the significant growth, there is still much room for further bilateral trade growth.
Assessing the positive impact of CPTPP, Mr. Shawn Steil - Canadian Ambassador to Vietnam said that since CPTPP was implemented, trade between the two countries has increased significantly. Vietnamese exporters benefit from reduced tariffs. Vietnam's exports account for 35% to Canada. Canada is one of the 10 potential customers for Vietnamese products thanks to CPTPP.
Conversely, Canada has also achieved significant success in trade with other member states, not only with regional partners in Asia but also with the Americas.
The agreement also allows Canadian businesses to exploit new markets, enjoy lower tariffs, better market access, stronger intellectual property protection, etc. Canadian products exported to Vietnam have become more competitive compared to other markets. Imports and investment have also increased from CPTPP members, helping to diversify the Canadian economy.
There is still great room for growth
According to Mr. Khanh, in the coming time, trade exchange between Vietnam and CPTPP member countries, especially the above three countries, has many opportunities for positive growth when CPTPP countries conduct a comprehensive review of the implementation of CPTPP, creating a new space for cooperation.
Mr. Ngo Chung Khanh - Deputy Director of Multilateral Trade Policy Department (Ministry of Industry and Trade).
After five years of implementation, countries have mainly cooperated with each other within a multilateral framework. But the parties also realized that it was time to have bilateral connections and discussions to promote bilateral cooperation.
Meanwhile, there is still a lot of room for trade growth, and there is still a lot of potential between Vietnam and other countries. Vietnam's market share in other countries as well as the market share of other countries in Vietnam is still relatively modest. The total import-export turnover of other countries compared to Vietnam's total import-export turnover is only 2-3%, and if divided by country, it is only more than 1%.
In particular, CPTPP will expand from the previous 11 members, now with the United Kingdom - a country with great economic potential - joining CPTPP. Many other economies are also applying to join, creating more opportunities to develop this market block.
In addition, world trade is recovering after the difficulties of 2022 and 2023, from which trade opportunities between Vietnam and the Americas will be positive.
However, according to Mr. Ngo Chung Khanh, besides opportunities, there are many challenges. Among them, the competitive advantage from CPTPP is gradually decreasing compared to the FTAs under negotiation such as ASEAN-Canada or the fact that some countries will join CPTPP (Indonesia).
Meanwhile, businesses' awareness is still limited. The long geographical distance that increases business costs is also a significant barrier in businesses' cooperation decisions...
Faced with these challenges, according to Mr. Khanh, it is necessary to study and build a mechanism for in-depth cooperation by topic between Vietnam and other countries. Promote bilateral cooperation in CPTPP by identifying topics of common interest. Build connections between Vietnamese enterprises and other countries, possibly expanding the idea of an ecosystem that takes advantage of FTAs for both export and import. Continue to strengthen export orientation to American markets, identify key areas, key enterprises, and avoid spreading.
The Canadian Ambassador to Vietnam said that it is necessary to raise awareness of the agreement further to ensure that all importers and exporters take advantage of the benefits that CPTPP brings. Together, we will find innovative solutions to promote partnerships, develop strongly, and expand new markets across the Americas and Asia. At the same time, we will streamline trade processes, enhance logistics services and support businesses.
Moonlight
Source: https://doanhnghiepvn.vn/kinh-te/cptpp-du-dia-tang-truong-lon-khong-gian-hop-tac-rong-mo/20241002055209587
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