FINAL REPORT SUBJECT INTERNATIONAL ECONOMICS topic the opportunities and challenges when vietnam enters CPTPP

The background information about the CPTPPThe Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP, is a new-generation free trade agreement FTA with 11 member cou

VIETNAM NATIONAL UNIVERSITY, HANOI UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES

-FINAL REPORT SUBJECT: INTERNATIONAL ECONOMICS Topic: The opportunities and challenges when

Vietnam enters CPTPP

CLASS: INE2020 6

INSTRUCTOR: ABC

STUDENTS:

Ha Noi, November

2021 Table of Contents

I The background information about the CPTPP 3

II The aim of CPTPP 3

III Main challenge: facing the increasing competition of trade 3

IV Favorable opportunities 4

1 Strengthen the competitiveness of business organizations 4 2 Expand export market 4

V Implementation of strategies 5

1 Strategies for the government 5

2 Strategies for business organizations 5

VI Conclusion 7

VII References 8

I The background information about the CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is a new-generation free trade agreement (FTA) with 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam

The predecessor of the CPTPP agreement was the TPP (Trans-Pacific Partnership) agreement, established in 2008 with the participation of 7 countries including Brunei, Chile, New Zealand, Singapore, the United States, Australia and Peru A year later, Vietnam joined the TPP agreement as a special observer In 2010, in Yokohama, Japan, Vietnam along with Malaysia, Mexico, Canada and Japan became official members

of the TPP agreement However, in January 2017, the United States announced its withdrawal from the TPP agreement In that context, on March 8, 2018, the remaining 11 member countries signed the CPTPP in Chile and agreed to rename the TPP agreement to the CPTPP agreement as today

II The aim of CPTPP

The main goal of the CPTPP is to strengthen cooperation to promote economic growth as well as trade policies and regulations between countries, thereby moving towards the elimination of tariffs and trade barriers for goods Besides, it addresses expanding markets with import and export services between member countries so as to increase trade and investments, promote initiatives and enhance social benefits

III Main challenge: facing the increasing competition of trade

 Vietnam is still dependent on imports from non-CPTPP members such as Korea and China While the CPTPP requires member countries to meet the rules of origin within the bloc including not using materials from third countries outside of CPTPP members This makes Vietnam not benefit much, not to mention significant challenges that Vietnam has to face

 Moreover, being a developing country, management of the economy concerning production scale, labor productivity, science and technology, are still inferior to the developed countries within CPTPP, which makes it difficult for both the quality and price of Vietnamese products to compete with other countries in the CPTPP in both the domestic and the export trade

IV Favorable opportunities

1 Strengthen the competitiveness of business organizations

 About the price: Being an open economy with a high import and export scale, the signing of the CPTPP with competitive markets along with the export tax reduction standard procedure will help Vietnamese business organizations enhance their competitiveness in the price of the products

 About the quality of products: Thanks to joining the CPTPP, Vietnam has become one of the attractive investment destinations, from which enterprises can attract foreign direct investment (FDI) flows with greater value, gain experience in operating management and receive modern

technology transferred from large foreign corporations Since then, the quality of the product is getting better and better

 About the amount of the products: The tax reduction to importing countries helps Vietnamese enterprises have new opportunities to expand the supply of products to member countries' markets Reducing import tax for products imported into Vietnam will also help Vietnamese business organizations have a variety of products to expand the scale of products for manufacturing and trading activities

2 Expand export market

Joining the CPTPP helps Vietnam diversify its export markets, thereby promoting the growth of many domestic manufacturing industries When exporting products to the markets of CPTPP member countries, Vietnamese business organizations will be granted commitments cutting taxes to about 0% - 5% Benefits

we get from CPTPP are not only boosted exports but also increased technology content of exports, thereby contributing

to promoting the export of products to major markets of countries in the CPTPP

V Implementation of strategies

1 Strategies for the government

The Government needs to facilitate business organizations to make the most of opportunities and overcome challenges by giving guidance timely in strengthening the implementation and effective exploitation of the agreement Specifically:

 Reform and simplify administrative procedures through completing the one-stop mechanism to reform the

authority of related licenses for domestic and foreign enterprises and investors Therefore, creating favorable conditions for business organizations through shortening the time for granting licenses, reducing administrative costs, both import and export costs along with customs clearance

 Take the initiative in construction projects and marketing plannings on specific terms so that Vietnamese business organizations can make the best use of them

 Restructure business organizations, types of infrastructure services in the direction of focusing on potential and high value-added services together with logistics development

 Reform the business environment, improve the national competitiveness which brings about a patent and stable business environment, reduce risks for Vietnamese business organizations in the process of developing business; speed up the establishment of an FTA fund to support businesses in sectors strongly affected by FTAs

2 Strategies for business organizations

Based on understanding the agreement, businesses need to improve their competitiveness to meet investors' standards attracted by this agreement Specifically:

2.1 Internal force

 Actively seek information about the agreement and its regulations Business organizations must take the initiative and wisdom to make important decisions, and flexibly adapt to meet the requirements of the agreement regarding technical problems such as origin Therefore,

plan rationally the manufacturing organization and increase the capability of the enterprises

 Efforts should be made to improve and promote the application of science and technology, especially investing

in the development of appropriate technology to improve the quality of goods and reduce product costs In the current 4.0 technology era, countries are in the running for applying scientific and technological research to production to increase business value In terms of the growth chart in applying information technology to production and trade, Vietnam is currently at the lowest rate, which means that Vietnamese business organizations need to exert themselves, actively learn and research to keep up with the development of the world

 For an enterprise to develop quickly and sustainably, as well as establish long-term value, the employees must be properly trained and have a basic knowledge foundation, then progress to professional and extensive knowledge enabling them to acquire the emerging knowledge of society

2.2 External force

 To expand production scale, businesses need to seek to mobilize investment in capital, human resources and technology from various sources such as calling for support from the government or collaborating with foreign companies However, policies and funding to support businesses in our country are still limited, so businesses should not just wait for the arrangement from the state, but need to reach out to the world and call for support,

especially from countries participating in the CPTPP It is also an indirect way to bring Vietnam's reputation to the world when the cooperation comes to success

 Vietnamese business organizations must soon convert raw materials imported from non- CPTPP countries to produce raw materials at the home country or import from CPTPP members According to the agreement signed in the agreement, businesses need to comply with the regulations when our country joins the CPTPP We have been granted a lot of incentives and achievements from developed countries, so businesses also need to dedicate themselves to reciprocating the benefits received The conversion of production to CPTPP member countries is a way to show Vietnam's respect and seriousness in the implementation of this agreement as well as to maintain a longstanding close partnership with CPTPP members

VI Conclusion

The fourth outbreak of the Covid-19 epidemic, which started

on April 27, 2021, has seriously affected all aspects of socio-economic life, production and business activities of organizations spreading to most provinces and cities, especially in big cities and provinces such as Ho Chi Minh City and Hanoi For the sake of our country’s future, each of us must make more efforts to repeal the Covid-19 epidemic and take advantage of the benefits of being a member of the CPTPP to promote trade and restore the economy

VII References

1 Binh, P T T., 2021 Tạp Chí Cộng sản [Online]

Available at: https://www.tapchicongsan.org.vn/web/guest/quoc-phong-an-ninh-oi-ngoai1/-/2018/54880/viet-nam-voi-cptpp co-hoi-va-thach-thuc.aspx

[Accessed 25 November 2021]

2 BNews, 2021 WTO Center [Online]

Available at: https://trungtamwto.vn/chuyen-de/17443-giai-phap-nao-giup-doanh-nghiep-tan-dung-loi-ich-tu-hiep-dinh-cptpp

[Accessed 25 November 2021]

3 Dung, D., 2021 BNews [Online]

Available at: https://bnews.vn/giai-phap-nao-giup-doanh-nghiep-tan-dung-loi-ich-tu-hiep-dinh-cptpp/191873.html

[Accessed 25 November 2021]

4 Hai, N T T., 2019 Tạp Chí Cộng sản [Online]

Available at: https://www.tapchicongsan.org.vn/web/guest/the-gioi-van-de-su- kien/-/2018/493331/hiep-dinh-doi-tac-toan-dien-va-tien-bo-xuyen-thai-binh-duong-va-tac-dong-cua-no-den-quyen-con-nguoi-o-viet-nam.aspx

[Accessed 25 November 2021]

5 Khien, N D., 2021 WTO Center [Online]

Available at: https://trungtamwto.vn/chuyen-de/17419-anh-huong-cua-dich-covid-19-doi-voi-phat-trien-kinh-te-viet-nam-2021

[Accessed 25 November 2021]

6 Minh, H D., 2020 Tạp Chí Cộng sản [Online]

Available at: https://www.tapchicongsan.org.vn/web/guest/quoc-phong-an-ninh- oi-ngoai1/-/2018/820818/nang-cao-nang-luc-canh-tranh-cho-cac-doanh-nghiep-cua-ha-noi-khi-thuc-thi-cac-fta-the-he-moi.aspx

[Accessed 25 November 2021]

7 Trade, M o I a., 2021 Comprehensive and Progressive Agreement for Trans-Pacific Partnership [Online]

Available at: http://cptpp.moit.gov.vn/?page=overview&category_id=9040e56c-c3f5-4592-9fe7-baa47f75a7c0

[Accessed 22 November 2021]

8 Vu, N V., Duong, N T & Nghia, P V., 2020 Viện Hàn lâm KHXH Việt Nam

[Online]

Available at: https://www.vass.gov.vn/nghien-cuu-khoa-hoc-xa-hoi-va-nhan- van/tac-dong-cua-hiep-dinh-doi-tac-toan-dien-va-tien-bo-xuyen-thai-binh- duong-doi-voi-viet-nam-94?fbclid=IwAR0_dlyt7KHf6NsHSIOg3W69ITJ-f7nTqzNHFQHHSjO6reIS_pHsxCo6f1k

[Accessed 25 November 2021]