The Trans-Pacific Partnership (TPP) deal will facilitate trade and investment, bringing more benefits to production, business, workers and consumers, Prime Minister Nguyen Tan Dung said in a recent article.
In the article, entitled “The TPP, opportunities and challenges – Our action,” Prime Minister Dung wrote that the TPP was a comprehensive market-access deal that ensured freer movement of commodities, services, capital and technology through commitments to remove export-import tariffs and non-tariff barriers and create a fair and non-discriminatory business environment.
Recently signed by 12 member states, including Vietnam, the agreement will promote the formation of a new manufacturing and supply chain, facilitate internal trade, improve economic efficiency and support job creation, as well as increase incomes, thus dealing with the challenges of a contemporary economy.
The TPP respected the political regimes of each country, and included a requirement to fully abide by countries’ laws in line with international commitments exclusive of defense and security terms, he wrote.
The PM said the TPP, along with a free-trade agreement with the European Union, would provide advantages and also create new challenges for Vietnam.
Such agreements would propel new momentum in socio-economic development, especially in attracting investment and promoting exports with the world’s largest economies, such as the 28-member European Union with a gross domestic product of more than USD 18 trillion, and the 12-member TPP with more than USD 20 trillion GDP.
Dung emphasized that joining the above agreements marked new progress in pursuing a foreign policy of independence, self-reliance multi-lateralization and diversification of ties, besides improving Vietnam’s international stature, especially in an area facing more intense strategic competition.
The PM said fierce competition would pose challenges, and enterprises with poor performances in transformation and restructuring could be on the verge of being shut down or bankruptcy.
Also, a segment of laborers would face unemployment, he wrote, noting that agriculture and farmers would be the most vulnerable.
The income gap would be widened if the rapid, sustainable development strategy did not produce effective results and the people did not benefit from growth outcomes, the leader said.
Another obstacle lies with the process of effectuation, from completing the legal system to personnel training and improving the capacity of officials, as well as technical and legal experts.
The PM underscored the need for the Vietnam General Confederation of Labor and the entire political system to gear up for new requirements on employment and trade union affairs.
Such opportunities could not bring economic strength, interests and competitive edge in the market by themselves. But they could, through endeavors and the effectiveness of targeted operation of the state, population and enterprises, he said.
Businesses determined micro-competitiveness and reflected the strength as well as the competitiveness of the economy, the leader said.
He said the business sector should be courageous and compete, while taking the initiative to employ synchronous and drastic measures to raise the competitiveness of its goods and services.
However, businesses must operate within the institutional framework and business climate that have been set up by the state, he said.
According to PM Nguyen Tan Dung, a national administration institution is decisive for macro-competitiveness and the development of an economy. This has been proven through research and in reality.
Institutional quality will determine the growth and sustainability of the economy, and institutions play a decisive role in the effectiveness and competitiveness of businesses.
To have a high-quality institution, the leader said there was a need to soundly define the relationship between the state, the market, society and enterprises.
The state had to stabilize the macro-economy, build the legal system and organize the management apparatus in order to create an open, transparent business environment and ensure business freedom and fair competition.
“The market makes decisions on the mobilization, allocation and effective use of resources. Enterprises can do business in fields that are allowed by law. They must improve their social responsibility and business culture,” the article says.
Meanwhile, through people and their representative occupational organizations, associations and independent researchers, the society could help to make and supervise the enforcement of policies, thus helping to reduce the weaknesses of the state and the market, he said.
To ensure success in international integration and the efficient implementation of FTAs – especially the TPP and Vietnam-European Union FTA – it is essential to have resolutions from the party and the National Assembly, and specific action plans from the government, ministries and the business community.
The PM also emphasized the importance of effective communication work in order to create a consensus in consciousness and unity in action, as well as of efforts to increase the national competitiveness so as to develop the economy quickly and sustainably.