Over one year after coming into effect, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has posed both challenges and served to create a wealth of opportunities for domestic businesses, according to insiders.

The government's official report submitted to the National Assembly for ratification of the CPTPP to assess the impact of the trade pact outlines that exports to CPTPP markets are expected to increase by 4.04% by 2035, representing an annual rise of approximately US$700 million. 

Since coming into force, Vietnam has made good use of the trade deal with the country’s export turnover to six CPTPP members surging by 8.3% to US$34.4 billion.

Most notably, exports to new markets that Vietnam had previously never signed free trade agreements with such as Canada and  Mexico have enjoyed significant rises of 28.2% and 26.8%, respectively. 

Luong Hoang Thai, Director of Multilateral Trade Policy Department under the Ministry of Industry and Trade, said the robust export growth enjoyed last year could be partly attributed to the implementation of the CPTPP. 

The apparel and textile industry can be regarded as the biggest beneficiary of the trade pact which has also yielded  remarkable results since coming into force. 

According to Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather and Footwear Association, local businesses have successfully taken full advantage of the CPTPP, with garment and textile exports to CPTPP members increasing by 11%.

In spite of some bottlenecks emerging due to the rule of origin, garment and textile enterprises have been able to sign lucrative orders with CPTPP signatories.

Despite achieving initial success, experts believe that the country has yet to take full advantage of the opportunities brought about by the CPTPP, noting that the agree would operate in the same manner as the proposed Trans-Pacific Partnership Agreement which involved the participation of the United States.

Nguyen Thi Thu Trang, Director of WTO Integration Center under the Vietnam Chamber of Commerce and Industry, said that the CPTPP has served to create pressure for institutional reforms domestically, particularly those related to issues such as the environment and labour

She underscored the importance of the CPTPP in accelerating an improvement of the local business climate, adding that relevant ministries and agencies should come together to effectively co-ordinate and promptly promulgate legal documents regarding the implementation the CPTPP.