CPTPP helps boost Vietnam-Malaysia trade ties
Malaysia’s ratification of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) has opened a great chance for Vietnam and Malaysia to further promote their trade cooperation, especially in export.
Vietnamese businesses will enjoy preferential taxes when exporting their goods to Malaysia from November 29, 2022.
Thanks to Malaysia’s involvement in the trade pact, Vietnam can use raw materials imported from other ASEAN member countries to produce goods for export to three markets where the bloc has not yet signed free trade agreements, namely Canada, Mexico and Peru.
The agreement will also bring more opportunities for Vietnam to use materials from CPTPP members for export to Malaysia and vice versa.
In the first eight months of 2022, Vietnam’s export turnover to Malaysia hit about US$3.9 billion, up 42.1% higher than the same period last year. Meanwhile, Vietnam spent US$6.2 billion on imports from Malaysia, up 14.7% year-on-year.
According to Pham Quynh Mai, Deputy Director of the Multilateral Trade Policy Department at the Ministry of Industry and Trade (MoIT), to help businesses fully tap commitments and benefits brought by FTAs, the ministry will closely coordinate with Vietnam's trade offices abroad to support enterprises in export activities, and to avoid risks and disputes that may arise when exporting goods.
The MoIT has also taken a series of measures to provide timely market information to businesses, helping them expand export markets, towards sustainable import-export development.