Vietnamese export turnover with TPP countries to reach $132.5 billion by 2020

Signing the Trans-Pacific Partnership Agreement (TPP) will create a stable growth for the Vietnamese export sector, especially textile and garment, footwear, spare-parts, and electronic components.

Experts forecasted that Vietnam’s total export turnover to other TPP countries may reach $75.7 billion in 2016, $87.1 billion in 2017, and $132.5 billion in 2020.

Notably, the export turnover of key sectors, namely mobile phones, textile and garment, footwear, and electronic components, will experience high growth.

According to Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's Export-Import Department, participating in the TPP will bring opportunities for Vietnamese enterprises to expand their export activities due to the zero import tariffs in large markets, such as the US, Japan, and Canada.

The US and Japan have been designated as Vietnam’s strategic export markets. With an import turnover of $1.8 trillion per year, the US holds immense promises for the Vietnamese export sector. Japan is an already established, important export market for Vietnam, making up 10 per cent of Vietnam’s annual export turnover.

Furthermore, after the TPP comes into effect, Vietnam will have the chance to take part in supply chains that are established. TPP countries represent nearly 40 per cent of the global GDP and conduct 30 per cent of the global trade, and include large markets such as the US and Japan, guaranteeing an abundance of business opportunities when the new supply chains are launched.

The TPP is essentially a comprehensive regional agreement that promotes economic integration to liberalise trade and investment by eliminating tariffs.

In October last year, the 12 member countries Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US finalised the trade deal after five years of stringent negotiations.

On February 4, 2016, Vietnam, together with the 11 fellow TPP countries, officially signed the pact in Auckland City, New Zealand. Accordingly, the TPP is expected to come into effect by 2018.