CPTPP Agreement – the driving force to expand the way for Vietnamese goods to market in the Americas

On April 27, 2021, in Hanoi, the Ministry of Industry and Trade held a seminar “CPTPP- Opportunities to expand the American market for Vietnamese exports”. The workshop was organized in a combination of online and direct forms, to look back on the two-year journey of implementing the Agreement and the impact on market development in CPTPP member countries in the Americas.

The workshop was attended by nearly 200 delegates who are representatives of the state management agencies, business associations and the production and export business community of Vietnam. On the part of the American partners, participating in the seminar were representatives from the diplomatic missions of Canada, Mexico, Chile, Peru and large corporations of American countries currently doing business in Vietnam.

The seminar looks back on the 2-year journey of implementing the CPTPP, and at the same time offers analysis, comments, solutions to help orient businesses with a more methodical approach to the American market.

At the seminar, experts gave analysis, comments and solutions to help Vietnamese businesses connect with foreign businesses and importers, so that they can build up an approach strategy. market, more methodical business strategy, taking advantage of existing incentives with CPTPP member countries, diversifying products and export markets in the Americas, especially in the trend of shifting the supply chain. responding to the global economy and prioritizing the recovery and maintenance of economic development during and after the epidemic of countries today.

Speaking at the seminar, Deputy Minister of Industry and Trade Do Thang Hai said that the economic and trade relations between Vietnam and the Americas have continuously developed in recent years. The CPTPP Agreement was officially approved on December 30, 2018 and came into effect for Vietnam from January 14, 2019, considered an important turning point to create new impetus to promote trade cooperation. – Investment between Vietnam and partner countries in general and the Americas in particular.

In the past 2020, in the context that the whole world is going through a special year with many fluctuations and recessions, the Covid-19 epidemic has seriously affected the world, the import-export turnover of Vietnam to the region. The Americas have still achieved many encouraging results, becoming a bright spot in Vietnam’s trade exchange with other countries in the world.

Specifically, the total trade turnover between Vietnam and the Americas reached nearly 111.5 billion USD, up 16% compared to 2019; of which exports reached 89.7 billion USD, up 21.7% and accounted for 31.7% of the total export of Vietnam.

After 2 years of CPTPP being put into effect, exports to the two countries that have ratified the CPTPP, Canada and Mexico, have grown strongly, reaching US $ 4.4 billion, respectively – up 45% and 3.17 billion. USD billion USD – up 41% over the same period in 2018. The remaining countries have not ratified the agreement but also witnessed a very fast growth (Chile 30%, Peru 21% compared to 2018). These figures confirm that the CPTPP has become the driving force to expand the way for Vietnamese products to market in the Americas, which are still very new and potential.

Among the 11 member countries participating in the CPTPP, there are 4 countries in the Americas: Canada, Mexico, Chile and Peru; and of these, Canada, Mexico and Peru are the three countries that Vietnam has FTA relations for the first time. These are also countries that commit to cut very high tariff rates for Vietnamese goods as soon as the CPTPP Agreement comes into effect, such as Chile (95%), Canada (94.9%), and Peru (81%). ) and Mexico (77%).

Following the growth momentum of 2020, in the first three months of 2021, Vietnam’s exports to CPTPP partners in the Americas also increased positively, specifically exports to Canada increased by 15% (reaching 1.13 USD billion), Mexico increased 17% (reached 931 million USD), Chile increased 12% (reached 321 million USD) and Peru increased 35% (reached 134 million USD).

According to the Europe – America Market Department (Ministry of Industry and Trade), besides exploiting the CPTPP market, businesses can study the possibility of taking advantage of incentives, economic linkages and infrastructure. availability of CPTPP member countries to bring Vietnamese goods to penetrate and expand to other markets in the Americas.

This region has many economic linkages through free trade agreements with close ties, such as the North American Free Trade Agreement (USMCA, including the US, Canada, Mexico, and 500 million people, GDP: 21,000 billion USD), the South American Common Market (MERCOSUR, including Brazil, Argentina, Uruguay, Paraguay with 265 million people, GDP: 2,400 billion USD), the Pacific Union (AP including Mexico, Chile, Colombia, Peru with 230 million people, GDP: 2,100 billion USD), Andean Community (CAN, including Peru, Colombia, Ecuador, Bolivia with 111 million people, GDP: 700 billion USD).

If they make good use of these economic linkages and trade incentives, Vietnamese enterprises can fully find favorable business opportunities, diversify products and export markets in the context of epidemics. change the global supply chain as it is today.

In addition to the favorable conditions, the Vietnamese business community and its partners in the CPTPP and the Americas still face many challenges in business cooperation such as: remote geographical distance, not yet available. direct passenger and freight routes, language differences, and the lack of up-to-date information on market access. In addition, businesses are also facing some difficulties in meeting origin standards, quality issues, meeting market standards …

The Government and the Ministry of Industry and Trade, together with the Vietnam Trade Office system in the Americas, will make efforts to support Vietnamese localities and the Vietnamese business community in market information, as a bridge with water partners. In addition, support to solve problems arising in the process of market entry and business – Deputy Minister Do Thang Hai affirmed.

Le Kim Lien


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