An assembly plant in Australia (Source: heraldsun.com.au)The Australian Associated Press (APP) news agency on October 17 reported that business ties between Australia and Vietnam are expected to grow further after the Trans-Pacific Partnership (TPP) agreement comes into effect, quoting remarks of many analysts and diplomats.
Hanoi-based World Bank economist Sandeep Mahajan said the TPP marks a major plus for Vietnam’s economy and is set to add a cumulative 8 percent to gross domestic product (GDP) by 2030.
The question is how much benefit that Vietnam could achieve from the trade pact, not whether they can derive benefit, he told AAP.
Meanwhile, charge d’Affaires at the Australian Embassy in Hanoi Layton Pike, said the TPP will boost two-way trade, which is already valued at more than 8 billion AUD (5.8 billion USD) annually.
Particularly, the pact will enable Australian investors to make inroad into Vietnam ’s education market, currently Australia ’s third largest.
He noted that Australian agricultural producers are also looking to increase market share in Vietnam, triggering concerns that Vietnamese farmers could lose out to more efficient Australian producers.
Brian O’Reilly, President of Australian Chamber of Commerce in Vietnam, said Vietnam offers potential for Australian investors seeking access to markets in other ASEAN countries.
“ASEAN is the place where you can establish in one country (Vietnam) with the TPP in place, and grow into the rest of the ASEAN community,” the news agency quoted O’Reilly as saying.-VNA
