CPTPP to create more opportunities for Vietnamese, Japanese firms - Illustrative image (Source: VNA)

Tokyo (VNA) – The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring huge benefits for both Vietnam and Japan, Deputy Minister of Industry and Trade Tran Quoc Khanh has said.

Speaking at a seminar in Tokyo on November 22, Khanh stated the CPTPP will allow Japanese enterprises to participate in Vietnam’s strongly developing government procurement market, which used to be closed to foreign businesses.

In addition, strong service industries in Japan like banking, insurance, construction, logistics and graphic design will also have more opportunities to enter the Vietnamese market, he added.

The deputy minister stressed the CPTPP covers a market of about 490 million people and has a combined GDP of 10.1 trillion USD, 13.5 percent of the globe’s GDP, and average per capita income of more than 19,000 USD a year.

According to him, the agreement will boost Asia-Pacific market integration by reducing barriers on trade services and goods, promoting fair competitiveness and investment and intelligence property protection and establishing new principals for e-commerce.

Vietnamese Ambassador to Japan Vu Hong Nam said he believes the agreement will offer big opportunities for Vietnam and Japan as well as other members.

Executive Vice President of the Japan External Trade Organisation (JETRO) Yuri Sato voiced her belief that Vietnam will take advantage of the agreement’s benefits to foster trade and investment by improving its investment environment, reforming administrative procedures and tariffs, and stepping up production to expand Vietnamese goods’ presence in overseas markets.

According to her, the Vietnam-Japan trade agreement has exempted taxations on 42 percent of Japan’s industrial products exported to Vietnam, but the CPTPP will raise the rate to 70.2 percent.

Therefore, she expressed her hope the agreement will facilitate the access of Japan’s products to the Vietnamese market.

It also puts forward the strongest-ever commitments related to investment protection and intellectual property, encouraging Japanese enterprises to intensify technology exports to Vietnam, she stated.

The CPTPP was signed in Santiago, Chile, on March 8, 2018 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Of the 11, seven countries have ratified the pact, with Vietnam finishing its procedures on November 12. Earlier, New Zealand, Canada, Japan, Mexico, Singapore and Australia ratified the deal.

The deal, taking effect at the end of this year, is expected to bolster economic growth, create more jobs, alleviate poverty and improve the living quality in member states.

The accord is expected to increase Vietnam’s GDP by 2.01 percent by 2035, according to the Ministry of Planning and Investment.-VNA