CPTPP could create 27,000 jobs in Vietnam each year

• Southern FDI firms prepare investment for CPTPP
• Vietnam expects high-quality FDI inflows after CPTPP ratification

Speaking at a workshop on labour in new-generation free trade agreements (FTAs) in Hanoi on November 19, Vinh stated the CPTPP will offer new chances for both labourers and enterprises, helping raise labourers’ living conditions, reduce poverty and promote growth.

He predicted the demand for labourers in the timber, garment and food sectors will rise by 0.084 percent, if the export turnovers of these sectors increases by 1 percent yearly thanks to the CPTPP.

An overview of workshop on labour in new-generation free trade agreements (Source: VNA)

However, the agreement will also pose challenges, he noted, suggesting Vietnam enhance vocational training to meet market requirements and strictly follow commitments related to salary and social insurance payment.

Economists recommended Vietnam intensify institutional reform, increase national competitiveness and improve human resources quality.

According to a study of the International Labour Organisation (ILO), FTAs can help improve gender equality, especially in increasing access to the labour market and narrowing the salary gap.

The study also showed that agreements with labour-related clauses will help raise trade value by 28 percent, while those without labour-related clauses can help increase the value by only 26 percent.

To ensure compliance with labour commitments, Vietnam is in the process of amending the Labour Law to make it compatible with some contents of the CPTPP and make its commitments about labour more concrete, stated Nguyen Van Binh, deputy head of the Ministry of Labour, Invalids and Social Affairs’ Department of Legislation.

It will take Vietnam three to five years to amend the law and related regulations, and to improve awareness among the public, workers and enterprises, he added.

The CPTPP was signed in Santiago, Chile, on March 8, 2018 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Of the 11, seven countries have ratified the pact, with Vietnam finishing its procedures on November 12. Earlier, New Zealand, Canada, Japan, Mexico, Singapore and Australia ratified the deal.

The deal, taking effect at the end of this year, is expected to bolster economic growth, create more jobs, alleviate poverty and improve the living quality of the member states. 

It will create one of the world’s largest free trade blocks with a market of about 500 million people and a GDP of 10.1 trillion USD, accounting for 13.5 percent of the globe’s GDP. 

The 11-nation accord is expected to increase Vietnam’s GDP by an additional 2.01 percent by 2035, according to the Ministry of Planning and Investment.