VietNamNet Bridge – Vietnam now has the opportunities to sign three free trade agreements with the three biggest trade zones in the world – the Trans Pacific Strategic Economic Partnership (TPP), the Vietnam – EU Partnership and Cooperation, and the ASEAN + 6 Agreements.

Vietnam’s national economy is experiencing difficult days these days with the slow bad debt settlement and the low GDP growth rate (possibly at 5.3 percent in 2013). However, experts say it has the greater opportunities than ever to develop economy, and what it needs to do is to turn the chances into reality.

The chance to promote Vietnam – Japan cooperation

Vietnam and Japan are about to sign an agreement on the cooperation to develop six industries, including food processing, agricultural machines, electronics, shipbuilding, energy saving, environment protection and automobile manufacturing.

Answering the questions of the local press agencies on the occasion of the 40th celebration of the Vietnam – Japan diplomatic relation, Vietnamese Minister of Foreign Affairs Pham Binh Minh said Japan has become one of the most important partners of Vietnam.

Japan is now the biggest foreign investor in Vietnam in both the registered capital and the disbursed money. A report showed that 1990 Japanese invested projects, mostly in the processing and manufacturing industries, are operational with the total investment capital of $32.66 billion.

Japan is also the biggest ODA (official development assistance) provider. Since 1992, when the ODA was resumed, Japan has granted the loan totaling yen2.1 trillion, or $21 billion to Vietnam, which is equal to 30 percent of the total ODA capital committed by the international community.

In trade, Japan is the third biggest bilateral partner with the two-way trade turnover of $24.7 billion. Of this amount, Vietnam exported $13.1 billion worth of products – crude oil, garments, transport means and auxiliary parts, and imported $11.6 billion worth of products – equipments and machines, computers, electronics and electronic parts.

Vietnam and Japan signed a lot of agreements, including the Vietnam – Japan Economic Partnership Agreement VJEPA which lays a legal framework for the economic cooperation activities.

FTAs with 3 biggest trade zones

Though no considerable progress has been made in the latest negotiations rounds, the involved parties, including Vietnam, still hope that TPP can be signed by the end of the year, because the agreement is expected to bring benefits to all the regional members.

According to Minister of Industry and Trade Vu Huy Hoang, TPP comprises of 12 member countries which make up 40 percent of the world’s GDP and 30 percent of the global imports and exports.

Dr. Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management (CIEM), said the foreign direct investment (FDI) in Vietnam has been increasing sharply in anticipation of the TPP Vietnam is going to sign with the other 12 countries.

He has noted the especially high increase in the investments in the textile industry, as the tariff is expected to be cut from 16.17 percent to zero percent.

Regarding the agreement with the EU, Thanh thinks that the agreement would be signed by the end of 2014.

Meanwhile, the ASEAN + 6 agreements is expected to be signed in December 2015.

Tri Thuc Tre