Vietnam to offer TPP incentives to non-member countries

By May 6, 2016 | 04:47 pm PT

Vietnam will treat Russia, all 28 European Union countries and the 10 member states of the Association of Southeast Asian Nations with Most Favored Nation or MFN status on some of the terms it has agreed in the Trans-Pacific Partnership (TPP) trade deal, said the Ministry of Justice.

MFN means that if Vietnam slashes its tariffs to zero on a given product for TPP members, it must also lower them by the same amount for Russia, the EU and ASEAN countries.

Vietnam has promised to treat the above-mentioned countries with MFN status when it signs bilateral trade agreements with them.

“This could have a huge impact because some TPP terms that Vietnam has offered to [TPP] members will also be given to about 40 more non-TPP countries. [Due to this] we should expect more legal changes,” said the ministry, referring to the fact that Vietnam, in preparation for the day the TPP comes into effect, is making adjustments to 10 laws and many other legal documents.

Vietnam is enhancing its market-based economy and changing its legal system so that it can become a full member of the TPP.

After more than a decade of negotiations and compromise, Brunei, Chile, Japan, Australia, New Zealand, Singapore, Peru, Malaysia, Mexico, the United States, Canada and Vietnam last year reached an agreement on all terms for the TPP.