21:43 (GMT +7) - Friday 22/02/2019

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CPTPP to boost trade and investment between New Zealand & Vietnam

Released at: 22:54, 12/01/2019

CPTPP to boost trade and investment between New Zealand & Vietnam

Photo: New Zealand Consulate

Ambassador of New Zealand to Vietnam, H.E. Wendy Matthews, tells VET how the CPTPP will offer more opportunities for Vietnamese and New Zealand businesses.

by Mai Truong

In joining the CPTPP, Vietnam not only commits to opening up markets, removing tariff barriers, continuing to open and facilitate trade, and continuing to exhibit transparency in the State management of market development. How do you think these factors will affect the business activities and development strategies of New Zealand enterprises in Vietnam?

The CPTPP is a high-quality 21st century free trade agreement (FTA), which means its coverage is designed to stimulate trade across the modern economy, including services and e-commerce. It also includes commitments on environmental and labor standards. Some of these areas are new commitments for CPTPP partners, including Vietnam. New Zealand has offered assistance to help Vietnam successfully implement the CPTPP, and other partners are also willing to help.

Trade between New Zealand and Vietnam has more than tripled since the ASEAN, Australia, and New Zealand FTA came into force in 2010. This demonstrates how FTAs can really open the door for businesses and trade links between countries. With the additional commitments included in the CPTPP, I am confident that trade and investment between New Zealand and Vietnam will continue to grow. Bilateral two-way trade grew 37 per cent last year, with strong growth in both directions. I look forward to strong trade and economic results in 2019 as the CPTPP comes into effect.

What sectors will benefit the most from the CPTPP and in what ways?

We are all aware of growing trade protectionism globally. Vietnam and other CPTPP members such as New Zealand have demonstrated through our commitment to the CPTPP that we believe prosperity in our region lies with openness in trade and deeper economic integration. We are saying to the world that we remain open for business and this is an important signal.

Business cooperation between New Zealand and Vietnam is booming in the areas of high-quality food and beverage products, agri-tech and agricultural expertise, education, and cutting-edge IT services in fields as diverse as healthcare, finance, and aviation. We anticipate that these linkages will be further boosted under the CPTPP.

Some have said that Vietnam will have more opportunities to boost national economic development through trade promotion and better quality FDI capital, particularly between New Zealand and Vietnam. What do you think about such views?

The economies included in the CPTPP account for 13.3 per cent of the world’s GDP, or $10.6 trillion. So, there are certainly opportunities there for Vietnamese businesses to grasp. The CPTPP includes commitments to ensure that economies at all levels of development and businesses of all sizes can benefit from enhanced trade. Ensuring that Vietnamese business, particularly small and medium-sized enterprises (SMEs), have the right information to take advantage of the opportunities will be key to ensuring the FTA is fully utilized and successful.

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