Monday, March 30 2020


PM highlights TPP opportunities and challenges

Update: February, 17/2016 - 08:51
Prime Minister Nguyen Tan Dung. — File Photo

HA NOI (VNS) — The Trans-Pacific Partnership (TPP) deal is set to facilitate trade and investment, bringing in benefits for production, business, workers and consumers, Prime Minister Nguyen Tan Dung said in a recent article.

In the article, titled "The TPP, Opportunities and Challenges – Our Action", PM Dung wrote that the TPP was a comprehensive market access deal that ensured more free movement of commodities, services, capital and technology through commitments to removing export-import tariffs and non-tariff barriers. It aimed to create a fair and nondiscriminatory business environment.

Recently signed by 12 member states, including Viet Nam, the agreement will promote the formation of a new manufacturing and supply chain, facilitate internal trade, improve economic efficiency, support job creation and increase incomes, thus dealing with the challenges of a contemporary economy.

The TPP respected the political regimes of each country, and included a requirement to fully abide by countries' laws in line with international commitments exclusive of defence and security terms, he wrote.

The Government leader added that the TPP, alongside a free trade agreement with the EU, would provide advantages and create new challenges for Viet Nam.

Such agreements will give new momentum to socio-economic development, especially in attracting investment and promoting exports with the world's largest economies. This includes the 28-member EU with a gross domestic product of VND402,705 trillion and the 12-member TPP with more than VND447,450 trillion.

He underscored that joining the above agreements marked new progress in pursuing a foreign policy of independence, self-reliance, multilateralisation and diversification of ties, improving Viet Nam's stature in the international scene – especially in an area facing more intense competition.

The PM said fierce competition would pose challenges and new pressures. Enterprises with poor performances in transformation and restructuring may stand on the verge of dispersal or bankruptcy.

Also, a segment of labourers would face unemployment, he added, noting that agriculture and farmers would be the most vulnerable.

The income gap would widen if the rapid, sustainable development strategy produces no effective results and people do not benefit from growth outcomes, Dung said.

Another obstacle lies with the process of effectuation, from completing the legal system to personnel training and improving the capacity of officials, and technical and legal experts.

The PM underscored the need for the Viet Nam General Confederation of Labour and the entire political system to gear up for new requirements on employment and trade union affairs.

The business sector needed to employ drastic measures to raise the competitiveness of its goods and services, but businesses must operate within the institutional framework and business climate set by the State, he noted.

According to the PM, a national administration institution is decisive to the macro competitiveness and the development of an economy. This has been proven through research and in reality.

The State has to stabilise the macro-economy, build the legal system and organise the management apparatus in order to create an open, transparent business environment and ensure business freedom and fair competition.

The market makes decisions on the mobilisation, allocation and effective use of resources. Enterprises can do business in the fields that are allowed by law. They must improve their social responsibility and business culture.

Meanwhile, through people, their representative occupational organisations and associations, and independent researchers, society can help supervise the enforcement of policies, reducing weaknesses in the State and market.

To ensure success in international integration and the efficient implementation of FTAs – especially the TPP and Viet Nam-EU FTA – it is essential to have resolutions from the Party and National Assembly, as well as specific action plans from the Government, ministries and business community.

The PM also emphasised the importance of doing communication work effectively in order to create a consensus in consciousness and unity in action, as well as making efforts to increase national competitiveness so as to develop the economy in a sustainable manner. — VNS

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