The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is one of the first new-genereration free trade agreements (FTAs) to take effect, playing a vital role in Vietnam’s export growth, especially amid the impacts of the US’s tax policies, according to insiders.

Speaking at a seminar held in Hanoi on November 5, Trinh Thi Thu Hien, Vice Director of the Import-Export Department under the Ministry of Industry and Trade, said the utilisation of CPTPP tariff preferences has made remarkable progress. Exports using CPTPP certificate of origin (C/Os) rose from 0.7 billion USD (2%) in 2019 to nearly 5 billion USD (8.8%) in 2024.

Emerging markets such as Mexico, Canada, and Peru have been standout performers. The share of exports to Mexico using CPTPP C/Os surged from 7% in 2019 to 47% in 2024, with seafood and footwear reaching 70–80%. In Canada, product groups such as suitcases, handbags, handicrafts, and seafood achieved C/O issuance rates of 40–80%.

Hien noted that while CPTPP utilisation rates remain lower than those of the EU–Vietnam (EVFTA) or UK–Vietnam (UKVFTA) FTAs, this is largely due to overlap among agreements. For example, Vietnamese exports to Japan can benefit from four different FTAs, resulting in a modest 3% use of CPTPP C/Os but an overall preferential tariff coverage of up to 50%.

Australia, one of Vietnam’s major CPTPP trade partners, has seen strong growth under the pact. According to Tran Thi Thanh My, Deputy Consul General and Head of the Vietnam Trade Office in Sydney, Vietnam’s exports to Australia rose from 3.5 billion USD in 2019 to 6.5 billion USD in 2024, up 83%.

However, she emphasised that businesses face stringent technical barriers in Australia, including food safety, quarantine, traceability, packaging standards, and fierce competition from China, Thailand, Indonesia, and India. To succeed, Vietnamese enterprises must improve product quality, enhance legal awareness, strengthen compliance with rules of origin, and increase the localisation rate of raw materials.

The US’s countervailing tax policy, she added, is accelerating the global supply chain restructuring, prompting exporters to pivot to stable FTA markets such as Australia and other CPTPP members. Despite short-term challenges, Australia remains a promising destination for Vietnamese goods because of its high purchasing power, stable demand, and CPTPP advantages.

Do Thi Phuong Thao, Export Director of Lenger Vietnam Seafood Co. Ltd., described the CPTPP as a strategic opportunity to expand markets and enhance the value of Vietnamese products. For Lenger Vietnam, a leading clam processor and exporter, the agreement offers access to high-standard yet stable markets such as Japan, Canada, and Australia.

Thao noted that the company is building a closed domestic supply chain to meet origin standards, ensuring maximum tariff benefits. It is also investing in certified raw material zones and traceability systems to position “Vietnamese clams” as a sustainable and responsible brand in the global market. She stressed that rather than reacting passively to reciprocal tariffs, Lenger Vietnam views them as a catalyst to restructure and strengthen competitiveness for sustainable growth.

Hien further advised enterprises to maintain comprehensive origin documentation to avoid losing preferential tariffs during verification by importing customs authorities.

The Ministry of Industry and Trade’s Import-Export Department is finalising a new decree to replace Decree No. 31/2018/ND-CP on rules of origin for exports and imports, tightening control over origin fraud while ensuring transparency and fairness. The delegation of C/O issuance authority to localities is also being expanded to shorten processing times and facilitate exports./.
 
Source: en.vietnamplus.vn/cptpp-growth-lever-amid-reciprocal-tariff-experts-post331988.vnp