Many positive results after 3 years of CPTPP's entry into force
Sharing at the seminar, Ms. Nguyen Thi Thu Trang, Director of the Center for WTO and Integration of VCCI emphasized, although the CPTPP is not Vietnam's first free trade agreement, it is a very special agreement. considering the nature and difference of the CPTPP from all the FTAs that we had before the CPTPP.
First, the CPTPP is the first high-standard new generation free trade agreement we've made. This feature reflects in relation to the execution process. Because from a trade perspective, in comparison with previous free trade agreements, except within the ASEAN framework, it can be said that the degree of liberalization, the extent to which the member countries in the CPTP commit to The agreement to open the goods market for each other is the highest among the previous agreements.
“This high standard is reflected in the extent to which countries commit in relation to the reduction, or elimination of non-tariff barriers to trade in goods. This makes a big difference in the implementation of the CPTP compared to the implementation of trade agreements before the CPTPP”, emphasized Ms. Nguyen Thi Thu Trang.
The second point concerns the difference between this agreement and the 11 existing agreements. That is from a partnership perspective, because CPTPP partners are not new. Seven out of 10 CPTPP partners are partners with which our country already has at least one common free trade agreement. However, the CPTPP is the first trade agreement like an all-out attack on the American market.
Before that, we had the Vietnam - Chile Free Trade Agreement but it was a traditional agreement and on a small scale. With the CPTPP, for the first time, we can simultaneously access two markets in South America, Peru and Chile, along with two markets in North America, Canada and Mexico. This creates a great opportunity for Vietnam to access new markets, with many potentials and challenges, because of the newness of the agreement.
During the three years of implementation, the CPTPP has brought remarkable results. According to statistics, Vietnam is the only ratified CPTPP member to increase market share in Canada and Mexico. For example, in Canada, Vietnam's market share in 2017 was 0.9%, in 2019, the first year of implementation of the CPTPP, Vietnam's market share in Canada's total imports increased to 1.2% and by 2020. The last 2021 was 1.6%, the country with the highest growth rate in terms of market share.
Likewise, in Mexico, in 2018, our market share was 0.9%, by 2021 our market share is 1.7%. "We evaluate the effect of Vietnam's success in taking advantage of tariff opportunities to gain market access and increase market share in the Americas market," noted Ms. Nguyen Thi Thu Trang.
In addition, if we look at the list of 10 key export products of countries with Vietnam, there are items that almost only our country has, such as shoes and rubber. There are products where we can match the strengths of our partners, such as furniture, textiles, but for the most part, in terms of specific products, our products are different. Therefore, our opportunities in CPTPP markets are huge.
Regarding specific export activities, Ms. Vo Hong Anh, Deputy Director of the European and American Markets Department, Ministry of Industry and Trade stated that, after three years of implementing the CPTPP Agreement, Vietnam's exports to the market The CPTPP market in the Americas has an impressive growth rate. For example, Canada, in 2021, we will export to Canada about 5.3 billion USD, an increase of about 75% compared to the time before the agreement took effect.
Or as with Mexico, in 2021, we will export to Mexico about 4.6 billion USD and grow to more than 100% compared to the time before the Agreement came into effect. These results show that the CPTPP Agreement has had positive effects, whether directly or indirectly, on Vietnam's exports to this market.
Textile is one of the key export items to the CPTPP bloc
Regarding the structure of our export products to these markets, the group of phones and components that emerges is about 20%, the group of electronics and computers accounts for about 16%, machinery and spare parts account for about 16%. 9% and textiles, leather and footwear.
"In fact, in the first nine months of 2022, the export of textiles and garments to the Canadian market has grown by over 50% compared to the same period in 2021," said Ms. Vo Hong Anh.
Affirming that the advantage does not only come from turnover figures, Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association analyzed that the CPTPP has brought three great changes to the industry. shoe leather.
First, there is export growth. Previously, businesses in CPTPP countries accounted for less than 10% of the industry's total export turnover. To date, has accounted for more than 14%.
Second, the CPTPP requires meeting rules of origin. This is the driving force to promote the development of domestic raw materials and production chains. In particular, the supply chain of raw materials has been invested more in Vietnam in recent years.
Third, the process of meeting the requirements of the CPTPP, the internal capacity of enterprises has also been greatly improved. Specifically, activities on import and export procedures, meeting market criteria and export market requirements, have helped businesses to change, invest and develop in the past period.
Find solutions to take advantage of the CPTPP
Although Vietnam's export to the CPTPP markets in the Americas region has seen very good growth in recent times, however, Ms. Vo Hong Anh also pointed out that it still has to be recognized that there is room. and the potential of the market to exploit is still huge and we can do even better. In particular, to expand and promote exports to other markets in the Americas, we see that all four CPTPP countries in the Americas are countries with relatively high economic openness. For example, Canada has up to 15 FTAs, or Chile has up to 29 FTAs… Therefore, how can we take advantage of these economic links to promote exports to these countries? other countries in the Americas.
Therefore, a representative of the European and American Market Department said that businesses can research on taking advantage of the CPTPP to penetrate other market areas. For example, Canada, Mexico, is the gateway to enter the North American market of the United States.
Enterprises can consider, combine, cooperate in production and business, export raw materials and accessories to Mexico, then jointly produce and perfect products, then continue to export to another country without Mexico has an FTA. Provided that we meet the rules of origin of those FTAs, we will be able to take advantage of tariff preferences with 3rd countries.
As for Chile, a country with a very open economy, so is Peru. Through Chile and Peru, we can take advantage to promote exports to other South American markets because Chile has an FTA with the whole South American market MERCOSUR.
Through the form of co-production, besides, businesses can also consider promoting cooperation with distribution systems and supermarket chains in the region.
Ms. Nguyen Thi Thu Trang added that in the coming time, businesses must be ready for new challenges. Recently, we have many advantages when "alone in a market". Because competitor countries have products and goods similar to ours in ASEAN and Asia, they do not have agreements with countries such as Canada or Mexico. Therefore, the products and goods in which we have an advantage are almost as if we have an absolute advantage with the CPTPP tariff preferences.
The fluctuations in geopolitics, other factors will affect our advantage in taking advantage of CPTP in this market, in short, the advantage is still one of our advantages in this market. this market, but it does not last too long, so businesses must take advantage of every opportunity at the present time. At the same time, prepare to improve competitiveness in the coming period, when the advantages are not much.
Phuong Lan
