The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the most ambitious free trade agreement (FTA) that Vietnam has ever participated in.
After more than two years of implementation, Vietnam has begun to see positive results from the CPTPP — including increases in trade value, foreign investment inflows, and institutional reforms. However, experts note that many Vietnamese enterprises have not yet fully utilized the opportunities and preferential benefits offered by the agreement.
Limited Understanding Among Businesses
Table of Contents
According to a recent survey by the Vietnam Chamber of Commerce and Industry (VCCI), the CPTPP is the most well-known FTA among Vietnamese enterprises, with 69% having heard of or possessing basic knowledge about it.
Yet, only 20% of surveyed businesses reported having a solid understanding of the agreement’s commitments, and a mere 5% said they clearly understood the specific provisions relevant to their operations.
Knowledge levels also vary across business types:
-
Foreign-invested enterprises (FDI): 29.7% possess good awareness of CPTPP commitments.
-
State-owned enterprises (SOEs): 27.3% demonstrate moderate understanding.
-
Private domestic enterprises: only 22.6% have basic knowledge.
Few Enterprises Benefiting from CPTPP Preferences
VCCI’s findings show that while most businesses view the CPTPP positively, only 24.7% of Vietnamese firms have actually benefited from its preferential mechanisms.
In other words, three out of four companies have yet to enjoy any direct advantages beyond the general positive effects on trade and investment.
FDI enterprises appear to gain the most from the CPTPP — especially through foreign partnerships and investment collaborations — whereas SOEs report no direct benefits in areas such as intellectual property protection, public procurement, or international cooperation.
Private enterprises mainly recognize improvements in the business environment, administrative reform, and tax incentives, which remain the most tangible benefits for them.
Barriers to CPTPP Utilization
According to Mr. Dau Anh Tuan, Head of VCCI’s Legal Department, over 75% of enterprises admitted that they did not know what specific benefits the CPTPP offers or how to take advantage of them.
Other key barriers include:
-
32% of firms fail to meet rules of origin (ROO) requirements for tariff preferences.
-
16% face challenges due to slow or unclear domestic implementation.
-
14% encounter difficulties in obtaining certificates of origin (C/O) for exports.
-
13% struggle with administrative procedures when dealing with government agencies.
When it comes to preferential tariffs, businesses cite both internal and external reasons for missing out:
-
45% lack information on preferential tariff schemes.
-
40% cannot meet origin requirements.
-
20% face delays or mistakes in C/O documentation.
-
15% lack necessary shipment papers.
Meanwhile, 43% note that Most-Favored-Nation (MFN) tariffs are already 0%, making CPTPP preferences unnecessary, while 37% have benefited more from other FTAs instead.
Case Study: Garment Industry Challenges
According to Mr. Than Duc Viet, General Director of Garment 10 Corporation (May 10), exports to CPTPP markets still account for a modest share of the company’s total trade volume.
The main obstacle lies in meeting CPTPP’s strict rules of origin — which require the “yarn-forward” principle, unlike the “fabric-forward” rule used by the EU. Currently, only about 30% of May 10’s products qualify for preferential tariffs.
To address this, the company is partnering with local textile and yarn producers to strengthen domestic supply chains. Mr. Viet emphasized that investing in fabric production will be a key step to unlock Vietnam’s full potential in CPTPP markets.
Toward Better Implementation
Experts agree that while the CPTPP has been systematically implemented, Vietnam must strengthen enterprise awareness and simplify regulatory procedures to help more firms access its benefits.
By enhancing understanding of the CPTPP’s commitments and promoting compliance with origin and sustainability requirements, Vietnamese enterprises can increase competitiveness, expand exports, and realize the full value of this landmark trade agreement.