14:53 | 09/03/2018 Economy- Society
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring direct economic benefits to Vietnam, according to a new World Bank report, released on March 9 following the official signing of the agreement in Chile.
|The CPTPP is expected to boost Vietnam's GDP and speed up reforms|
The CPTPP, along with other multilateral trade agreements, is expected to further boost investment in Vietnam and in its export-driven growth model, according to the report.
The study estimated that even under conservative assumptions, the CPTPP would lead to an increase in Vietnam’s GDP of 1.1 percent by 2030, and that figure could rise to 3.5 percent given a modest boost to productivity.
All income groups in Vietnam are expected to benefit from this new trade deal, although highly-skilled workers may reap more benefits.
In addition, the anticipated increase in foreign direct investment is expected to lead to a further expansion of the services sector and boost productivity growth.
The trade pact is also expected to create opportunities for domestic private firms to integrate into global value chains and stimulate the development of small and medium-sized businesses.
Sebastian Eckardt, the World Bank’s chief economist for Vietnam, commented that most importantly, the CPTTP would provide an impetus for domestic reforms in many areas, such as intellectual property, labour standards, and the rules of origin.
He added that delivering commitments under the CPTPP will contribute to promoting transparency and support the creation of modern institutions in Vietnam.