TPP: Improvement to Relative Competitiveness of Vietnamese exports to the US the biggest medium term payoff

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The biggest medium term impact from TPP will be a significant improvement in Vietnam’s trading position vis-a-vis the United States. The US & Japan are amongst Vietnam’s largest trading partners (accounting for 19.06% and 9.78% of exports in FY2014) and are both key members of TPP.

However, Vietnam already has an FTA in place with Japan and many other TPP members but it doesn’t have any FTA with the United States. Vietnam’s key exports to the United States include seafood, garment, footwear, wood, and wood products; where it competes head-on with exports from China, Bangladesh and other nations. However none of these countries are parties to TPP. Hence we may say that tariff liberalization contained in the TPP will result in a significant relative improvement in the competitive position of key exports from Vietnam to the United States.

These submissions are extracted from reports accomplished by Ho Chi Minh City Securities Corporation (HSC)’s Research Division team led by Fiachra Mac Cana, Managing Director, Head of Research

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