Vietnam Benefits and Challenges to Join TPP

According to experts, Vietnam will enjoy a series of advantages from joining the Trans-Pacific Partnership (TPP).

When joining TPP, estimated exports of Vietnam in 2025 is expected to increase by 28.4%, reaching USD 307 billion. The growth would be contributed by exporting more manufactured goods (34% more), import and processing of consumer goods (27% more). Vietnam will attract more Foreign Direct Investment (FDI) due to the optimism of investors, play a more important role in the global supply chain, increase productivity due to competition and create opportunities.

In order to achieve success with TPP, Vietnam should continue to facilitate further trades, simplify import and export procedures and customs, and curb corruption. Small and medium enterprises in Vietnam should be encouraged to engage in international trade.

However, it is obvious Vietnam still faces many challenges. The lack of uniformity in policies create instability for investors and business. A study by the World Bank in 2013 revealed that Vietnam does not lack of policies, plans and projects but they are not interconnected. Advice from the experts, and individuals outside the government did not receive adequate attention. It is suggested that Vietnam has a national action committee to coordinate activities. National efforts can only be successful if there is a mechanism set up to frequently and effectively interact with enterprises.