Taking advantage of the large potential of the CPTPP market

VCN - Vietnamese enterprises can take advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and strategic gateways such as Canada, Mexico, Chile, and Peru to expand exports.
Vietnamese brands in the CPTPP market still modest Vietnamese brands in the CPTPP market still modest
Vietnam needs brand building to boost exports to CPTPP market Vietnam needs brand building to boost exports to CPTPP market
Tra fish export to CPTPP market reaches 114 mln USD as of June 15 Tra fish export to CPTPP market reaches 114 mln USD as of June 15
Taking advantage of the large potential of the CPTPP market
Import and export activities at Nghi Son Seaport (Thanh Hoa).

Textile and garment industry takes advantage of opportunities from CPTPP

According to statistics from the General Department of Customs, the total import and export turnover between Vietnam and CPTPP countries in the Americas recorded an impressive growth of 56.3% in the period 2018-2023. Specifically, from 8.7 billion USD in 2018, the import and export turnover reached 13.6 billion USD in 2023, although the world in this period faced many challenges such as economic recession and the Covid-19 pandemic. Notably, Vietnam's export turnover to this region nearly doubled, from 6.3 billion USD to 11.7 billion USD in the same period. At the same time, the trade surplus to these markets also increased sharply, from 3.9 billion USD to 11.01 billion USD, contributing positively to Vietnam's macroeconomic stability.

This result not only contributes to the growth of trade with CPTPP countries but also significantly contributes to the total trade between Vietnam and the entire Americas region, with a total import-export turnover of 137.7 billion USD in 2023, of which Vietnam exports 114.5 billion USD.

The CPTPP agreement opens up opportunities for many industries, especially the textile and garment industry - one of Vietnam's key industries. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, affirmed that the CPTPP is an FTA that creates great opportunities for the Vietnamese textile and garment industry to access markets such as Canada, Australia and New Zealand - markets that Vietnam previously had difficulty penetrating deeply.

The agreement not only helps businesses access the market but also creates conditions for textile and garment enterprises to adapt to the purchasing processes of import partners in the CPTPP bloc. In particular, the CPTPP's requirements for certificates of origin have encouraged businesses to improve product quality, from input materials to production, creating a competitive advantage over competitors in the global market.

“In 2023, the Vietnamese textile and garment industry recorded a total export turnover of 40 billion USD, of which CPTPP markets contributed 16% of the industry's total export turnover. In the first 9 months of 2024 alone, textile and garment export turnover reached 38.4 billion USD. Although Vietnam exports to 104 different markets around the world, the key markets are still the US (accounting for 39-40%), the EU, Japan, China and the CPTPP bloc. These figures show the success of the textile and garment industry in taking advantage of CPTPP in recent times,” Mr. Vu Duc Giang emphasized.

It is expected that in 2024, the Vietnamese textile and garment industry will continue to achieve an export turnover of 43-44 billion USD. However, to fully exploit the tariff incentives from CPTPP, enterprises need to increase investment in technology, optimize production and supply processes, and aim to participate more deeply in the value chain through original brand manufacturing (OBM) or original design manufacturing (ODM) models. These are considered key factors to enhance the competitiveness of Vietnamese textile and garment enterprises in the international market.

There is room and challenges for development

Despite great strides, trade between Vietnam and the American countries in the CPTPP bloc still faces many challenges. The total import-export turnover between Vietnam and the three markets of Canada, Mexico, and Peru in the CPTPP are only accounts for about 2% of Vietnam's total import-export turnover. In addition, the growth rate of trade with this group of countries is still unstable, with the trade proportion accounting for only 1.2% in 2019, increasing to 2% in 2021 but decreasing to 1.7% in 2023.

Notably, the market share of some of Vietnam's key export items in major markets such as Canada is showing signs of decline. For example, Vietnam's seafood market share in Canada has decreased from 6.4% in 2019 to 5.6% in 2023. This poses a big challenge for Vietnamese enterprises in maintaining and expanding market share in CPTPP countries.

Mr. Ngo Chung Khanh, Deputy Director of the Department of Multilateral Trade Policy (Ministry of Industry and Trade), said that CPTPP members are conducting a comprehensive review of the implementation process of the agreement to find new cooperation spaces. Although CPTPP has brought many opportunities, the room for trade development between Vietnam and member countries is still very large. With the UK joining CPTPP and many other economies applying to join, cooperation opportunities within the framework of this agreement will increasingly expand.

Mr. Khanh also emphasized that Vietnamese enterprises need to clearly grasp the benefits and ways to take advantage of CPTPP. The long geographical distance between Vietnam and the Americas is a major barrier in terms of transportation costs, so there needs to be a mechanism for in-depth cooperation and closer connections between businesses on both sides. At the same time, building business connections in the ecosystem that takes advantage of FTAs, expanding bilateral cooperation forms such as Vietnam-Canada, Vietnam-Mexico, and Vietnam-Peru is necessary to promote more effective cooperation in the future.

The CPTPP has been opening up many great opportunities for Vietnamese businesses, especially in expanding exports to the Americas. However, to fully exploit the potential of this agreement, businesses need to proactively seize opportunities, invest in technology, optimize production processes, and seek cooperation opportunities with partners in the CPTPP bloc.

By Ngoc Linh/ Huu Tuc

Related News

Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".

Latest News

Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - China is the largest export market for Vietnamese agricultural products and fruits. With increasing demand, exporting agricultural products by rail to this billion-people market is a potential and promising direction.
Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports have exceeded 1 billion USD again in October after more than two years, signaling a rosy future for the industry, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.

More News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Read More

Your care

Latest Most read
Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - Implementing the Regional Comprehensive Economic Partnership (RCEP) Agreement, Vietnam has now officially exported 14 agricultural products to the Chinese market, including fresh coconuts that have just been approved by China for official import fro
Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports have exceeded 1 billion USD again in October after more than two years, signaling a rosy future for the industry, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - According to the Vietnam Trade Office in Canada, as of September 2024, Canada has initiated nineteen trade defense investigations on Vietnamese export goods, including twelfth anti-dumping (AD) cases, five anti-subsidy cases and two defense cases.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Mobile Version