Vietnam's decision to move away from ratifying the Trans-Pacific Partnership is a blow to the beleaguered trade pact and a setback for American economic ambitions in Asia. The 12-nation TPP is aimed at liberalizing trade and investment in the Asia-Pacific region. Earlier, Vietnam had been hoping that its participation in the deal would lead to an increase in exports.

Even in the US, which initiated negotiations for the pact, approval of the TPP is yet to be completed. This has prompted Vietnam to move slowly. In fact, approval of the TPP is not on the agenda for the current legislative session which runs through late November. This makes it clear that the country will not ratify the pact this year. Vietnam’s decision has had its fallout as well. The Philippines, considering joining the TPP after Vietnam, has changed its decision in recent weeks. This move is seen as moving away from Washington and getting closer to Beijing. With ratification of the TPP looking more likely to stall in a number of countries, the influence of the US in Asia appears to be rapidly weakening.