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CPTPP paves way for Vietnam to boost exports to American markets
Wednesday,  4/28/2021, 11:03 

CPTPP paves way for Vietnam to boost exports to American markets

The Saigon Times

Employees process corn for export at the Vifoco Import Export JSC in Bac Giang Province. CPTPP has paved the way for Vietnam’s exports to American markets - PHOTO: VNA

HCMC – Two years after coming into force, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up multiple opportunities for Vietnam to ship its products to American markets, and the export revenue from these markets has increased sharply, said Deputy Minister of Industry and Trade Do Thang Hai.

At a virtual seminar, “CPTPP - Opportunities for Vietnam’s exports to American markets”, held on April 27 by the Ministry of Industry and Trade’s European-American Market Department, Hai said the economic and trade relations between Vietnam and American countries had grown significantly, the local media reported.

CPTPP, which was ratified on December 30, 2018, and took effect on January 1, 2019, was considered an important hallmark fostering trade and investment ties between the Vietnamese and American markets and all of its signatories as a whole.

Last year, despite the severe impact of Covid-19, the trade value between Vietnam and America reached nearly US$115 billion, up 16% over 2019. Of this, Vietnam exported products worth US$89.7 billion to America, rising 21.7% and making up 31.7% of the country’s total export revenue.

Two years after CPTPP became effective, Vietnam’s exports to Canada and Mexico, which have also ratified the deal, soared 45% and 41%, respectively, versus 2018.

Although the remaining countries have yet to ratify the deal, Vietnam’s export earnings from these markets also surged, such as Chile by 30% and Peru by 21%.

In the first quarter of this year, Vietnam’s exports to American markets also grew. For example, the country’s exports to Canada increased 15%; Chile, 12%; Mexico, 17%; and Peru, 35%.

The deputy minister added that enterprises could make use of the incentives, economic connections and infrastructure of other CPTPP members, thereby expanding to other American markets.

At the seminar, Do Thi Thu Huong, Vietnamese counsellor in Canada, said Canada, with a population of 36 million people and an annual gross domestic product growth of 3%, was a potential market for Vietnamese products. Its imports per capita always doubles that of the United States, while its population is only one tenth of that of the United States.

The Canadian Government has also issued many preferential policies with many products being exempted from duties and many programs, giving Vietnamese products easy access to the Canadian market.

Canada also considers Vietnam as a prioritized trade partner due to the country’s active participation in free trade agreements and dynamic economy. Vietnam’s key exports to Canada include seafood, agricultural products, textiles and garments, footwear, wood and wooden products.

However, Vietnamese enterprises should learn more about CPTPP and regulations on taxes and origin traceability in Canada and continue to use ecommerce platforms to connect with Canadian firms amid the pandemic.

Luu Van Khang, Vietnamese counsellor in Mexico, said Vietnam’s exports to the country picked up 19% on average over the past two years. In the first three months of this year, the growth rate was 17%.

Besides advantages, experts at the seminar also pointed out challenges facing Vietnamese firms and American partners, such as geographic distance, lack of direct transport routes and market information and language differences.

Moreover, local enterprises are struggling to meet requirements on the origin and quality of these markets.

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