The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the spotlight of international leadership in March. Economic leaders from 11 countries signed a trade agreement that will forge a trans-Asia Pacific economy. The CPTPP is one of the most visionary trade agreements yet signed. Officials from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam met in Santiago, Chile, on March 8^th, to set rules and standards for the trade expected to be effective end of the year to early 2019.

The CPTPP is a free trade agreement involving 11 countries and represent a population of over 500 million people. The agreement surpasses that of the European Union and will account for 13.58% of world GDP. The goal for the agreement this year, is to reduce tariffs on exports and imports between the membered countries by 98% and to protect the economy against steep tariffs that the US government has imposed this year. The trade agreement of these 11 countries is estimated to increase by 6% by 2030 and each country will benefit from a US$157 billion revenue per annum estimated by Peterson Institute for International Economics (PIIE).

The report by Asian Trade Center has analyzed the benefits that CPTPP will be able to bring as tariffs and policies on imported goods will be lifted. Such agreement will aid products to be integrated and introduced into foreign consumer market, where products can be widely dispersed. The center predicts that during the first few days of the trade agreement when effective, tariffs on exported goods will largely decrease and continue onwards with other products. This is good news for the product market as well as manufacturing businesses.

The export performance of Vietnam, as a membered country of the CPTPP, has grown strong as a global exporter. In the last decade, its export and import growth has increased 3 times with a 17.6% growth per annum and ended 2017 with a strong performance with US $210 billion worth of exported goods and a total revenue of US $2.7 billion. Vietnam places 50^th in the World Trade Organization (WTO) index in 2007, and today, ranks 26th with an exceptional achievement in the worldwide trade sector.

Economists from Voice of Vietnam forecasted that the benefits from CPTPP will bring the country closer bonds with global economies and be able to forge additional trade partnerships. Moreover, Vietnam’s exports will also be able to reach markets in Canada, Mexico, Peru, Chile and Australia, and further grow in Japan, the 5^th largest trade and 3^rd largest investment partner. Apparel manufacturing, shoes and other similar manufacturing businesses will likely increase in export revenue in addition to agricultural products.

On the other hand, CPTPP is a highly standardized law agreement. With its participation, Vietnam must implement new strategies and reformation work within its government structure and policies to prepare for the upcoming competition with other markets in order to become a leading economy.

According to ETtoday, CPTPP is now recruiting more country members to join its agreement including Thailand, Korea, Philippines, Sri Lanka and even UK. This suggests the potential for CPTPP to expand with participation from global economies which will in turn, increase Vietnam’s prospering export growth.