Vietnam has asked Indonesia to follow its footsteps to become a member of the US-led Trans-Pacific Partnership (TPP) and has pointed out various advantages in joining the humongous regional trade deal.
Vietnamese Ambassador to Indonesia and deputy chief negotiator for the TPP Nguyen Nguyet Nga has said that Indonesia, the largest economy in Southeast Asia, would have opportunities to strengthen its leadership in the region by joining the trade pact. Indonesia’s strong leadership was important to expedite development in Southeast Asia, he said, adding that the more Indonesia engaged in such regional agreements such as the TPP, the better for ASEAN to build political and economic cooperation with global powerhouses. The Vietnamese ambassador added that economically, Indonesia would also enjoy benefits from many aspects within the TPP, citing Vietnam’s many gains since joining the agreement in 2010, which ranged from market access for key export products and transfer of technology, to stronger ties with its trading partners.
She added that Vietnam saw the TPP as an opportunity for the country to reduce its economic dependence on the East Asian market, which amounted to 60 percent of its exports. China is the largest market in this region.
Vietnam’s exports quadrupled to $162.4 billion in 2015 from $48.6 billion in 2007, a year before it commenced domestic talks on joining the TPP. Foreign investment also rose to $11.8 billion in 2015 from $2.6 billion in 2007. Vietnam, the second-fastest growing economy in Southeast Asia after the Philippines, also enjoys 0 per cent tariff rate for its products such as textiles, apparel, footwear and agro-aquatic products when entering the market of TPP members. The TPP is one of the world’s biggest multinational trade deals covering around 40 percent of global gross domestic product (GDP) signed by Vietnam, Australia, the US, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore in February. The agreement, which was finalized in February last after seven years of negotiations, is currently awaiting ratification from state parties to come into force.
