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TPP and Vietnam – is it an opportunity or challenge?

Recently Vietnam finally succeeds in negotiating and joining TPP, which is expected to open up opportunities for Vietnam to attract foreign investment from TPP member countries. It will make waves for businesses and investors in Vietnam – but also raises new challenges for the whole country.
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What is TPP?

TPP stands for Trans-Pacific Strategic Economic Partnership Agreement, is a proposed regional free trade agreement aimed at eliminating tariffs and lowering non-tariff barriers that is being negotiated by 12 countries throughout the Asia-Pacific region.

 

How big is it?

TPP includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam, which collectively contribute almost half of global output and over 40% of world trade, according to the Office of the United States Trade Representative.

 

What TPP is about?

TPP is not only about trade, but also about grouping together to push against growing Chinese global influence.
TPP regulations contains 29 chapters, in which there is only 5 chapters that mention directly to commerce trading and the others are about new standards about labor, environment, intellectual property, financial, foods and medicines, … It is considered as a high-standard and ambitious treaty that opens new markets for our entrepreneurs, new choices for consumers, sets new standards for workers, including the air we breathe, and economic means that will build a positive architecture of security throughout the region.

 

How TPP will affect Vietnam’s economy?

 

For Vietnam, this will mean:

  • Lower tariffs
  • Tighter copyright rules
  • Greater foreign investment

 

From that, TPP show us a great profit for foreign businesses. Goods could be made cheaper. And the need for companies in Vietnam to compete on a global basis for both domestic and international consumers will clearly grow exponentially.

The obvious opportunities is creating a business boom, increasing exports and letting expat entrepreneurs make hay. But we also face big challenges on the perceived boon for multi-national corporations, and say it will make the rich richer and keep poor people in poverty.

However, TPP is about to make a big difference to life in Vietnam whether we welcome them or not.

 

Source: Modern Gold, Ezlaw, tuoitrenews

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