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FOREIGN TRADE UNIVERSITYHO CHI MINH CITY CAMPUS---------***--------MID-TERM ASSIGNMENTMajor: International Business EconomicSubject: International EconomicsVIETNAM’S ECONOMIC RELATIONS WITH ITSTRADING PARTNERS FROM CPTPPSupervisor: Class:Ho Chi Minh, January 2022FOREIGN TRADE UNIVERSITY HO CHI MINH ...

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FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS ---------***--------

MID-TERM ASSIGNMENT Major: International Business Economic Subject: International Economics VIETNAM’S ECONOMIC RELATIONS WITH ITS TRADING PARTNERS FROM CPTPP Supervisor: Class:

Ho Chi Minh, January 2022

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS ---------***--------

MID-TERM ASSIGNMENT Major: International Business Economics Subject: International Economics VIETNAM’S ECONOMIC RELATIONS WITH ITS TRADING PARTNERS FROM CPTPP Supervisor: PhD. Trần Nguyên Chất Class: K59CLC5 Group 2 Dương Ngọc Minh Thư Hồ Vũ Thanh Thảo Hoàng Lê Phương Thảo Hoàng Quốc Việt Hà Nhật Quang

Ho Chi Minh, January 2022

Student ID 2011156102 2011156097 2011155544 2011115683 2011155492

TABLE OF CONTEN

TABLE OF CONTENT............................................................................................ i LIST OF ABBREVIATION WORDS...................................................................iv LIST OF FIGURES.................................................................................................v LIST OF TABLES.................................................................................................vii MAIN CONTENT................................................................................................... 1 Chapter 1. INTRODUCTION...............................................................................1 1.1. Rationale of the research..................................................................................1 1.2. Aims and objectives..........................................................................................2 1.2.1. Aims............................................................................................................. 2 1.2.2. Objectives....................................................................................................2 1.3. Scope of the research........................................................................................2 1.4. Research questions............................................................................................3 1.5. Research methods.............................................................................................3 1.6. Structure of the research..................................................................................3 Chapter 2. OVERVIEW

OF

CPTPP AND

VIETNAM’S

ECONOMIC

RELATIONS WITH OTHER CPTPP MEMBERS..............................................5 2.1. Overview of CPTPP.......................................................................................... 5 2.1.1. Basic concept of CPTPP.............................................................................5 2.1.2. The difference between the CPTPP and TPP..............................................5 2.2. Overview of Vietnam’s economy......................................................................6 2.3. Overview of Vietnam’s relations with CPTPP members...............................7 2.4. The economy situation of different blocs........................................................9

2.4.1. Current situation of Australia and New Zealand (bloc 1)..........................10 2.4.2. Current situation of Brunei and Malaysia (bloc 2)....................................10 2.4.3. Current situation of Mexico and Canada (bloc 3).....................................11 2.4.4. Current situation of Chile and Peru (bloc 4).............................................12 2.4.5. Current situation of Japan and Singapore (bloc 5)....................................13 Chapter 3. ANALYSIS ON VIETNAM’S ECONOMIC RELATIONS WITH OTHER CPTPP MEMBERS................................................................................15 3.1. Economic relations with bloc 1 (Australia and New Zealand)....................15 3.1.1. International trade....................................................................................15 3.1.1.1. Trade in goods...................................................................................15 3.1.1.2. Trade in services................................................................................20 3.1.2. International investment............................................................................21 3.1.3. Impact of CPTPP on economic relations...................................................24 3.2. Economic relations with bloc 2 (Brunei and Malaysia)...............................27 3.2.1. International trade....................................................................................27 3.2.2. International investment............................................................................31 3.2.3. Impact of CPTPP on economic relations...................................................31 3.3. Economic relations with bloc 3 (Mexico and Canada).................................31 3.3.1. International trade....................................................................................31 3.3.1.1. Trade in goods...................................................................................31 3.3.1.2. Trade in services................................................................................37 3.3.2. International investment............................................................................38 3.3.3. Impact of CPTPP on economic relations...................................................39 3.4. Economic relations with bloc 4 (Chile and Peru).........................................40 3.4.1. International trade....................................................................................40

3.4.2. International investment............................................................................46 3.4.3. Impact of CPTPP on economic relations...................................................47 3.5. Economic relations with bloc 5 (Japan and Singapore)...............................49 3.5.1. International trade....................................................................................49 3.5.2. International investment............................................................................57 3.5.3. Impact of CPTPP on economic relations...................................................58 Chapter 4. FINDINGS AND CONCLUSION.....................................................59 4.1. General impact of CPTPP on Vietnam’s economic relations.......................59 4.1.1. General impact..........................................................................................59 4.1.2. Opportunities.............................................................................................59 4.1.3. Threats.......................................................................................................60 4.2. Implications for Vietnam and other CPTPP members................................61 4.3. Conclusion....................................................................................................... 62 REFERENCES...................................................................................................... 64 APPENDIX............................................................................................................67

LIST OF ABBREVIATION WORDS

Abbreviation

Definition

CPTPP

The Comprehensive and Progressive Agreement for TransPacific Partnership

TPP FTA RCEP EVFTA GDP APEC BIMP-EAGA

The Trans-Pacific Partnership Agreement Free Trade Agreement Regional Comprehensive Economic Partnership The European Union Vietnam Free Trade Agreement Gross domestic product Asia-Pacific Economic Cooperation The Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area World Trade Organization Japan - Thailand Economic Partnership Agreement UK-Japan Comprehensive Economic Partnership Agreement Vietnam - Chile Free Trade Agreement Vietnam - Japan Economic Partnership Agreement ASEAN - Japan Comprehensive Economic Partnership

WTO JPETA CEPA VCFTA VJEPA AJCEP

LIST OF FIGURES Figure 2.1: Vietnam’s export and import turnover to countries in CPTPP................8 Figure 3.1: Vietnam’s trade intensity index with Australia and New Zealand.........15 Figure 3.2: Vietnam’s two-way goods trade with Australia.....................................16 Figure 3.3: Vietnam’s two-way goods trade with New Zealand..............................17 Figure 3.4: Proportions of Vietnam’s export to Australia and New Zealand...........18 Figure 3.5: Proportions of Vietnam’s import from Australia and New Zealand......18 Figure 3.6: Vietnam’s inward FDI with Australia and New Zealand.......................22 Figure 3.7: Vietnam’s outward FDI with Australia and New Zealand.....................23 Figure 3.8: Proportions of Vietnam’s FDI with Australia and New Zealand...........23 Figure 3.9: Growth rate in Vietnam’s exportation to Australia and New Zealand...25 Figure 3.10: Growth rate in Vietnam’s importation from Australia and New Zealand ................................................................................................................................. 26 Figure 3.11: Vietnam export to Malaysia and Brunei in 2011-2020........................28 Figure 3.12: Vietnam import from Brunei and Malaysia in 2011-2020...................29 Figure 3.13: Vietnam import shares from Malaysia and Brunei..............................30 Figure 3.14: Vietnam export shares to Malaysia and Brunei...................................30 Figure 3.15: Vietnam's export value to Canada and Mexico from 2010 to 2020.....33 Figure 3.16: Annual growth of Vietnam's export value to Canada & Mexico from 2010 to 2020 (%)......................................................................................................34 Figure 3.17: Vietnam's import value from Canada and Mexico from 2010 to 2020 35 Figure 3.18: Annual growth rate of Vietnam's import value from Canada and Mexico from 2010 to 2020 (%)................................................................................35 Figure 3.19: Proportion of partner countries in Vietnam's export and import value (%)........................................................................................................................... 36 Figure 3.20: Trade intensity index between Vietnam with Mexico and Canada......37 Figure 3.21: Vietnam export and import by service-category by Canada................37 Figure 3.22: FDI inward from Canada and Mexico from 2009 to 2019 (million USD)........................................................................................................................38

Figure 3.23: FDI outward to Canada and Mexico from 2009 to 2019 (million USD) ................................................................................................................................. 39 Figure 3.24: Vietnam’s export to Peru and Chile from 2010 to 2020 (thousand dollars)..................................................................................................................... 41 Figure 3.25: Trade index intensity between Vietnam with Peru and Chile from 2009 to 2020.....................................................................................................................42 Figure 3.26: Proportion of Vietnam’s export to Peru and Chile (%)........................43 Figure 3.27: Vietnam’s import from Chile and Peru from 2010 to 2020 (thousand dollars)..................................................................................................................... 44 Figure 3.28: Proportion of Vietnam’s import from Peru and Chile (%)..................45 Figure 3.29: Vietnam’s investment outward from Peru in stock from 2011 to 201946 Figure 3.30: Vietnam’s FDI inward from Chile in 2017 and 2019..........................46 Figure 3.31: Annual growth rate of Vietnam’s export to Peru and Chile (%)..........48 Figure 3.32: Annual growth rate of Vietnam’s import from Peru and Chile (%).....49 Figure 3.33: Vietnam’s export value to Singapore and Japan from 2011 to 2020 (Thousand USD)......................................................................................................51 Figure 3.34: Vietnam’s import from Singapore and Japan 2011 - 2020 (Thousand USD)........................................................................................................................55 Figure 3.35: Annual growth rate of Vietnam’s import value from Singapore and Japan from 2012 - 2020 (%).....................................................................................56 Figure 3.36: FDI inward from Japan and Singapore 2011 - 2019 (million USD)....57

LIST OF TABLES Table 3.1: Australia’s exportation in services to Vietnam in 2018...........................20 Table 3.2: New Zealand’s exportation in services to Vietnam in 2018....................21 Table 3.3: Vietnam’s top 10 exports to Japan 2018 - 2019 (Thousand USD)..........52 Table 3.4: Vietnam’s top 10 export to Singapore 2018 - 2019 (Thousand USD).....54

MAIN CONTENT Chapter 1.

INTRODUCTION

1.1. Rationale of the research Economic relationships have long become one of the essential activities of each country. Besides developed countries, developing countries have also made great efforts in the process of international integration and Vietnam is also among them. With the goal of becoming an industrialized and modernized country, Vietnam has quickly joined the world's major economic organizations and continuously developed industry and exported goods. In the process of world economic integration, Vietnam has formulated important policies and guidelines to improve the competitiveness of the domestic economy, consolidate and enhance its position in the world arena. Especially after the US-China trade war, Vietnam is getting more and more attention by many potential partners. However, besides these progress, there are many obstacles and challenges that Vietnam has to face. Obviously, the market is becoming more and more competitive and there are huge fluctuations in economics. Especially after many Covid outbreaks, the market has been significantly impacted. Thereby, many businesses, both domestic and foreign or other multinational corporations, are more or less affected. Therefore, to ensure sustainable economic development, Vietnam and other countries need to cooperate with each other. In the wave of global economic integration and the expansion of trade liberalization, Free Trade Agreements (FTAs) are becoming a new and powerful trend around the world. Recognizing the importance as well as the many benefits that these agreements bring, in recent years Vietnam has actively participated in the negotiation and signing of bilateral and multilateral FTAs. In particular, the important milestone is that Vietnam has signed 3 of the largest Free Trade Agreements in the world (FTAs). These are: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Free Trade Agreement between Vietnam and the European Union (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP). In particular, the CPTPP Agreement is the

largest-scale new-generation Free Trade Agreement that Vietnam has ever participated in. Therefore, it is considered as a turning point in Vietnam's in-depth integration process. For these reasons, it is necessary to have deep study about the relation about Vietnam and other countries in CPTPP. 1.2. Aims and objectives 1.2.1. Aims This research systematically studies the economic relations between Vietnam and the other countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), especially the economic relations between Vietnam and other countries which have common geographical features in the field of trade in goods and services and investment. Thereby, through this research paper, our team will have a deeper understanding of the content, nature and influence of the CPTPP on Vietnam. In addition, this study also draws conclusions about the reason why Vietnam signed the agreement as well as the importance and advantages and difficulties that Vietnam faces when being a member of the CPTPP. 1.2.2. Objectives To accomplish the above purposes, it is essential for us to build a theoretical basis and have insight into the practical basis for the study as well as generalize and codify the CPTPP agreement. - Build the rationale for understanding the CPTPP - Synthesize and analyze actual data on import-export value, investment between Vietnam and the countries in CPTPP, divided into groups based on the common geographical features - Analyze the condition of Vietnam before and after signing CPTPP - Analysis on the important of the economic relations between Vietnam and íts trading partners in CPTPP

1.3. Scope of the research - In terms of space: Vietnam and other countries in CPTPP - In terms of time: during 2009 -2020 - In terms of content: Economic relationship between Vietnam and other countries in CPTPP and how CPTPP impacts Vietnam's economy 1.4. Research questions The research provides answers for the following questions: (1) What is the CPTPP agreement? (2) What are the characteristics of the economic relations between Vietnam and CPTPP’s partners? (3) What impacts have CPTPP had on the economic relation between Vietnam and its trading partner? (4) How has the CPTPP agreement affected Vietnam's economy pattern over the past decade? 1.5. Research methods The authors approach the research by utilizing quantitative techniques. In order to reveal the pattern of Vietnam's economy, the paper will be researched and analyzed based on the observable indexes and data of international trade. Furthermore, the dissertation will also include the document on Export Price Index (EPI) and Import Price Index (IPI) of two main categories which are trade in goods and trade in services to deeply understand the economic relation between Vietnam and other partners in the CPTPP agreement. On the international investment aspect, the group of authors also provide a thorough research on FDI to clarify the impact of CPTPP on its partners over the past decade. By computing revealed comparative advantages, the authors want to have a better view of Vietnam's economy pattern and draw some conclusions. 1.6. Structure of the research Apart from preface and references, the research will comprise 4 chapters as follow: Chapter 1: Introduction. This part provides a summary of this research.

Chapter 2: The second chapter will give the readers general knowledge about the CPTPP and its difference from TPP. At the same time, the research also summarizes the main characteristics of Vietnam’s economy and other partners. Chapter 3: This part will focus on determining the economic relations between Vietnam and CPTPP partners on 2 main aspects: international trade and international investment. Chapter 4: Findings and conclusion

Chapter 2.

OVERVIEW OF CPTPP AND VIETNAM’S ECONOMIC

RELATIONS WITH OTHER CPTPP MEMBERS 2.1. Overview of CPTPP 2.1.1. Basic concept of CPTPP The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), or TPP11 is a multilateral free trade agreement among 11 countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. 11 countries in this agreement account for 13.5% of GDP and a large trade market of 480 millions of people, resulting in CPTPP now becoming one of the world's largest free-trade areas. However, after post-Brexit, the U.K is going to be the next member of CPTPP this year. Its 5 key features are Comprehensive market access, Fully regional agreement, Cross-cutting trade issues, Addresses new trade challenges, and Living agreement for the Asia-Pacific region. CPTPP features chapters on the protection of the environment and labour rights, which are enforceable by dispute settlement, to ensure that CPTPP members do not derogate from their commitments in these areas to increase trade or investment. The purpose of CPTPP is to achieve the highest standard of comprehensive market ...