VietNamNet Bridge – Prime Minister Nguyen Xuan Phuc said Vietnam would likely approve the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) at the National Assembly meeting this month.

If Vietnam ratifies CPTPP, only two more countries will need to follow suit to bring the 11-member trade deal into effect. - Photo gov.sg

Phuc was quoted by Nikkei in his Hanoi office on Saturday ahead of a visit to Tokyo for Tuesday’s Mekong-Japan Summit.

Nikkei reported that the approval could be a major step towards implementing the trade deal, also known as TPP11. Vietnam’s ratification would be the fourth of six needed for the deal to take effect.

Mexico, Japan and Singapore have already ratified the trade deal as of July 18.

Other signatories include Australia, Brunei, Canada, Chile, Malaysia, New Zealand and Peru.

The CPTPP will come into effect 60 days after at least six member countries ratify the trade pact.

At a Viet Nam Business Summit (VBS) question and answer session in September, Phuc said the Vietnamese Government would summit the CPTPP to the National Assembly for approval in October.

The sixth meeting of the 14th National Assembly will open on October 22.

Phuc said that the trade deal will provide a boost to the development of member countries.

Member economies will benefit from the opening of new spaces for development, including new products and services. This development will create new jobs.

Exports should also increase as a result of access to new markets like Peru and Mexico.

Finally, the trade pact will promote foreign and domestic investments.

At VBS, Phuc also pointed out challenges that could arise from the ratification of the CPTPP.

He said legal institutions must be amended to ensure compatibility with the pact.

Phuc stressed that Vietnam must promote the development of the business community to catch up with the pact’s requirements.

“Businesses with poor-quality products and low productivity cannot compete,” he said.

The trade pact was signed on March 8 after a turbulent period caused by the withdrawal of the US.

CPTPP was designed as an open free trade agreement. Countries can join after the agreement comes into effect by accepting its standards and signing an agreement with its member countries. 

Source: VNS