The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to create opportunities for Vietnam to expand markets for major exports like wood and timber products, and seafood. It is forecast wood and timber products will benefit much from the deal as most CPTPP member countries have committed to removing tariffs on Vietnamese wood and timber products immediately after the agreement takes effect. Source: Vietnam Plus
Nguyen Ton Quyen, Vice President of the Vietnam Timber and Forest Product Association (VIFORES), said the CPTPP will generate more opportunities than challenges for the industry.
Apart from big traditional markets like Japan, New Zealand, Australia and Singapore, Vietnam’s wood sector has widened its reach to new markets such as Canada, Peru and Chile.
Under the CPTPP, many export and import tariff lines on timber products will drop to zero, helping reduce product prices and improve the competitiveness of Vietnamese timber products, he explained.
More importantly, wood processing firms have pinned high hopes on the pact as wood processing equipment will also enjoy zero percent tariffs. Besides, the CPTPP will help lure more foreign direct investment (FDI) to the domestic wood industry, which traditionally flowed from China, he said, adding that Japanese enterprises have begun to seek opportunities in the country.
The 14th National Assembly passed a resolution approving the CPTPP and related documents on 12 November as part of the legislature’s sixth session. The CPTPP was signed by 11 member states, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam in March 2018.
It is one of the most comprehensive trade deals ever concluded and strips 98% of tariffs for the 11 countries with a combined GDP of more than 13.8 trillion USD and close to 500 million consumers.
The pact will be provisionally enacted 60 days after it is ratified by six countries. As such, the CPTPP is hoped to take effect in December 2018, as so far Mexico, Japan, Singapore, New Zealand, Australia and Canada have ratified the deal.
