Benefits for Vietnam's Manufacturing Under a TPP-like Agreement
On 23 January 2017, newly elected U.S. President Donald J. Trump signed an executive order to withdraw the United States from the Trans-Pacific Partnership (TPP), a regional trade agreement among 12 member countries, including Vietnam. As TPP accounts for ~40% of global GD and ~11% of the world’s population, tariff reductions and expanded market access will be expected in Vietnam’s economy once TPP comes into effect. Large trade volumes with the U.S. and Japan, increased competitiveness due to low labor costs, as well as tariff cuts on export and import goods are major drivers behind Vietnam’s benefits from TPP. This white paper highlights opportunities that exist in Vietnam’s manufacturing sector if the TPP were to be ratified. To maximize benefits, strategic development of supporting industries (raw materials and machinery) and accompanying infrastructure in Vietnam are required.
This white paper aims to address these main questions :
- 01. How will TPP impact Vietnam's manufacturing landscape?
- 02. Which industry sectors will benefit most from TPP in Vietnam?
- 03. How can multinationals capitalize on opportunities being driven by TPP in Vietnam?