Hanoi (VNA) – The Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP), which came into force inVietnam on January 14, will support free trade amid ongoing global tradetensions, according to HSBC Vietnam.

The CPTPP gathers 11 economies, namely Canada,Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singaporeand Vietnam.

Its enforcement is the latest demonstration oftrade liberalisation in Asia-Pacific, experts have said, noting that Japan andSingapore recently signed bilateral free trade agreements (FTAs) with theEuropean Union. An FTA between Vietnam and the EU is hoped to be signed in thenear future, while Australia, Indonesia and New Zealand are also negotiating similardeals with the EU.

The CPTPP will eliminate 95 percent of tariffsamong member countries, and Vietnam has opportunities to gain immediate tradebenefits from it, especially in the textile-garment and footwear industries –two of the country’s biggest foreign currency earners.

CEO of HSBC Vietnam Pham Hong Hai said in thecontext of trade tensions, the CPTPP reflects the Vietnamese Government’sdetermination to boost trade liberalisation and build a rules-based tradingsystem.

[CPTPP officially comes into force in Vietnam]

He expressed his belief that businesses willbenefit from access to 500 million consumers and regulations ontransparency. 

The CPTPP will not only promote trade among itsmembers – their exports are predicted to rise by more 6 percent collectively, with8 percent for Vietnam, by 2030 – but also lead to shifts in global supplychains when trade flows move towards member countries.

According to an HSBC Navigator survey, about 39percent of enterprises in the CPTPP members believe the agreement will directlyor indirectly support their business activities in both the short and long terms.

Chairman of the Vietnam Chamber of Commerce andIndustry Vu TienLoc said thanks to the CPTPP, markets for Vietnamese firms willbe expanded when most tariff barriers are removed. They will have chances tobolster exports, especially in products of Vietnam’s strength liketextile-garment, footwear, handbags, and electronic, aquatic and agriculturalproducts, to other member economies.

Local companies will also have moreopportunities to diversify partners, mobilise resources,attract investment capital, import high-tech equipment, and join global valuechains.

He added that the commitments under the CPTPPwill generate a driving force for economic institutional reforms, thus creatinga better environment for businesses.-VNA