At the press conference (Source: VNA)

Hanoi (VNA) – Member countries of the Trans-Pacific Economic Strategic Partnership (TPP) will remove tariff on between 78-85 percent of tariff lines for Vietnamese goods immediately after the TPP takes effect, possibly in 2018, according to the Ministry of Finance (MoF).

Vu Nhu Thang, Head of Department of International Cooperation under the MoF, said at a press conference on November 9 that those goods include many key exports, such as garment and footwear, plastics products, wood products and rice.

Three to five years later, from 97 to 100 percent of all tariff lines will be abolished, Thang said, adding that most member countries follow this roadmap, except for the US which has separate tariff reductions for each TPP member.

Therefore, the TPP will open up opportunities for Vietnamese enterprises to boost Vietnam’s export goods to the member countries of the TPP, said Thang.

On the other hand, Vietnam will also bring tariffs to zero for most import goods.

Import tax will be abolished immediately for a majority of plastics and plastic products, chemicals and chemical products paper, wooden products; machinery and equipment, as well as garment and footwear, rice, fertilizer and milk and dairy products.

For cars, the tariff will be removed on new cars in the 13th year since the TPP goes into effect. For cars with engine sizes from 3000cc and above, the tariff will be lifted in the 10th year.

The tariff will be lowered to zero in 2029 for imported iron, steel, gas and oil;

It is 2029 for chicken meat and 2028 for pork.

As for whether prices will drop with the cut in import tariffs, the official said it is difficult to forecast as prices are influenced by many factors, such as purchase power, other domestic taxes and fees, among others.

The Ministry of Finance said more educational activities should be held to popularise information about the TPP and Vietnam’s commitments under the pact, while making adjustments to domestic policies to facilitate and well manage import-export and trade, improve business environment and attract more investment.

The TPP involves 12 countries in the Pacific Rim - Brunei, Chile, New Zealand, Singapore, Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam - is scheduled to take effect in 2018.-VNA