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

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---1


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

2


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 (TransPacific 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.

3


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
4


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
5

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,

6


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,
7


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 socioeconomic

life,

organizations

production

spreading

and

to

most

business

activities

provinces

and

of

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.

8

VII. References

1. Binh, P. T. T., 2021. Tạp Chí Cộng sản. [Online]
Available at: />[Accessed 25 November 2021].
2. BNews, 2021. WTO Center. [Online]
Available at: />[Accessed 25 November 2021].
3. Dung, D., 2021. BNews. [Online]
Available at: />[Accessed 25 November 2021].
4. Hai, N. T. T., 2019. Tạp Chí Cộng sản. [Online]
Available at: />[Accessed 25 November 2021].
5. Khien, N. D., 2021. WTO Center. [Online]
Available at: />[Accessed 25 November 2021].
6. Minh, H. D., 2020. Tạp Chí Cộng sản. [Online]
Available at: />[Accessed 25 November 2021].

9


7. Trade, M. o. I. a., 2021. Comprehensive and Progressive Agreement for
Trans-Pacific Partnership. [Online]
Available at: />[Accessed 22 November 2021].
8. Vu, N. V., Duong, N. T. & Nghia, P. V., 2020. Viện Hàn lâm KHXH Việt Nam.
[Online]
Available at: />[Accessed 25 November 2021].

10