Vietnam to join TPP when ready

HCMC - Vietnam will only sign an agreement for the Trans-Pacific Partnership currently under negotiation when the country has made all necessary preparations in order to lessen negative impact on its economy and businesses, Minister of Planning and Investment Bui Quang Vinh said.

“Vietnam will lose more than what it gains if it signs the TPP agreement when it has not well readied conditions for participation. This is my concern in the role of a head of the ministry responsible for general economic issues,” Vinh said at the Vietnam-Singapore Business Forum opening in HCMC on Wednesday.

However, Vinh emphasized that Vietnam had actively entered negotiation rounds for the TPP so as to have an appropriate roadmap for its participation. The TPP is expected to take effect by 2015.

Vinh said the Government’s view was to do its utmost to settle all relevant issues, including those within Vietnam for becoming a member of the TPP, which will certainly enable the country to expand trade and investment linkages with the world. But, Vietnam will have to grapple with much negative impact as a result of opening its market.

Vinh cited Vietnam’s admission to the World Trade Organization as a good lesson for the country to learn. He said after more than five years of joining this global trade club, the country had gained a lot but also had to cope with many problems.

“When local companies have not met conditions for global integration, they lose much of their market shares,” Vinh said, referring to tax reductions and market opening as Vietnam’s commitment to the WTO.

“TPP will be the same if Vietnam does not ready it well,” Vinh said.

April 17, 2013

Source: Saigon Times