Minister of Industry and Trade Vu Huy Hoang on February 4 signed the Trans-Pacific Partnership (TPP) agreement alongside representatives from 11 other nations.
Trade Ministers at the signing ceremony__Photo: VNA
Australia kicked off the formal signing which was done in alphabetical order of the 12 nations, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.
Witnessing the signing of the trade deal in Auckland, New Zealand Prime Minister John Key believed the TPP agreement would promote trade liberalization, create favorable conditions for trade in the region and wholly benefit twelve member states and their citizens.
After the signing ceremony, the completed document will be submitted to the National Assembly of Vietnam for approval, said Minister Vu Huy Hoang. TPP is expected to come into force within two years of signature once twelve countries complete their domestic legislative procedures.
According to the Ministry of Industry and Trade, Vietnam is expected to largely benefit from joining the trade zone, especially for garment, leather footwear and woodwork industries, which represents nearly 40 percent of global economy and annually contributes nearly USD 300 billion to the world’s GDP.
The Ministry, however, pointed to challenges for the country, given its small-sized and low-competitive economy.
To prepare for the implementation of free trade agreements (FTA), including TPP, the Government has focused on completing FTA-related legal documents, accelerating economic restructuring, renewing state enterprises, and reforming administrative procedures to increase competitiveness of the business environment.- (VLLF)