The TPP will be yet another boost to Vietnam’s manufacturing growth, according to Mr. Michael Sieburg, Associate Partner at Solidiance Vietnam.
Vietnam, the second-smallest economy among the TPP member countries after Brunei, is set to be a major beneficiary as the agreement will increase investment in its manufacturing sector, deepen the supply chain, and accelerate export growth.
Textile and apparel industries will continue to be a main driver of Vietnam’s economic growth in light of the agreement being signed.
The TPP, a regional trade agreement among 12 countries that comprise ~40 per cent of global GDP and ~11 per cent of the world’s population, taps into a number of new areas such e-commerce, supply chains, and State-owned enterprises.
A recent white paper from Solidiance, an Asia-focused management consultancy firm, highlights a number of growth opportunities in Vietnam’s manufacturing sector in relation to the agreement.Further market access to already large trade partners such as the US and Japan will be central to driving the benefits for Vietnam’s manufacturing sector.
As TPP signatories account for ~40 per cent of Vietnam’s total exports, the agreement’s passage will accelerate its exports to member countries as well as increase its total exports by an estimated additional $68 billion by 2025.
Source: TPP to drive manufacturing