Vietnam and TPP
Earlier this year, representatives from 12 countries have signed the finalised proposal of the Trans-Pacific Partnership (TPP) after a 7-year negotiation. Once getting ratification and officially coming into force, it will create the biggest single market in the world with the total population of 800 million people, being responsible for 40% of world trade and banishing nearly 18,000 tariffs among the participants. While TPP still offers positive prospect to be discussed, many experts have started to claim that Vietnam will be the biggest winner in this economic bloc.
Expected to be ratified in the third quarter of 2016 by the National Assembly, TPP paves the way for Vietnam’s low-wage economy to developed countries like America, Japan and Australia. With the tariffs no longer being applicable, Vietnam’s spearhead sectors like apparel and footwear manufacturing, seafood industry and textile industry will gain easier access to promising markets along the Pacific Rim. In addition, foreign economic entities also follow TPP to acquire competitive advantages and business opportunities, with companies shifting their operation to Vietnam and investors seeking for partnerships.
That being said, I believe Vietnam deserves to be featured as one of the most appealing destinations in many global surveys. Especially, as a founding member of TPP, Australian corporations will definitely find this as a breakthrough to the ever-expanding economy of Vietnam – which is forecasted to grow up to 11% in the next decade.