CPTPP paves way for local goods to penetrate the Americas

Two years after being implemented, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has become a driving force, paving the way for Vietnamese products to make greater inroads into countries in North, Central, and South America, according to industry insiders.
CPTPP paves way for local goods to penetrate the Americas
Experts share their viewpoints on opportunities to boost Viet Nam's exports to American markets.

The view was shared by Deputy Minister of Industry and Trade Do Thang Hai during a seminar in Ha Noi on April 27 aimed at discussing various opportunities to boost Vietnamese exports to the Americas.

Hai emphasised that despite the adverse impact caused by the COVID-19 pandemic last year, Vietnamese export turnover to the Americas achieved plenty of encouraging results and has become a bright spot in terms of trade exchanges between Viet Nam and other countries globally.

The total import-export turnover between the two sides last year surged by 16% to roughly US$111.5 billion compared to 2019. Most notably, exports to Canada and Mexico grew strongly, increasing by 45% and 41% to US$4.4 billion and US$3.17 billion, respectively, compared to the 2018 figures.

For other countries like Chile and Peru that have yet to ratify the CPTPP, which have not yet ratified the trade pact, Vietnamese exports to these markets also grew impressively by 30% and 21%, respectively, compared to 2018.

Statistics indicate that the first quarter of the year saw exports to Canada, Chile, Mexico, and Peru rise by 15%, 12%, 17%, and 35%, respectively.

These figures have become the driving force, paving the way for Vietnamese goods to enter emerging markets in the Americas, said Deputy Minister Hai

He, therefore, advised local firms to make use of the economic linkages and trade incentives in order to seek new business opportunities, whilst also diversifying their export goods and markets amid the current context.

Do Thi Thu Huong, Vietnamese trade counselor to Canada, also described Canada as a potential market for local goods, adding that domestic enterprises must be more proactive in grasping knowledge about the trade pact.

This is especially true with regard to learning about preferential import taxes, adapting to the rules of origin, while utilising e-commerce platforms to step up cooperation with Canadian businesses amid the complex nature of the COVID-19 pandemic, said Huong.

Sharing the same viewpoint, Luu Van Khang, Vietnamese trade counselor to Mexico, also affirmed that local exports to the Mexican market witnessed strong increases during the first two years of the enforcement of the CPTPP.

In the opening three months of this year alone, Vietnamese exports to Mexico increased by 17% to US$931 million against the same period from last year, said Khang.

Experts also pointed out a number of challenges faced by the Vietnamese business community and partners in the CPTPP market and the Americas, including the significant geographical distance, difficulties in freight transportation routes, language differences, and the lack of updated information regarding market access.

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(Source: VOV)