Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no3.0771

The Impact of Tariffs on Vietnam's Trade in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)  

LE, Thi Anh Tuyet (Faculty of International Economics, Banking University of Ho Chi Minh City)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.3, 2021 , pp. 771-780 More about this Journal
Abstract
The study assesses the impact of tariffs on Vietnam's trade in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Research data was conducted between 2001 and 2018 on the official website of the Uncomtrade and the World Bank. This paper uses the gravity model to estimate the relationship between data series and considers the impact of factors on Vietnam's trade with CPTPP countries. The results have proven that tariff reductions have a positive effect on Vietnam's trade. Besides, the trade openness of Vietnam and CPTPP countries has positive impacts on Vietnam's trade. The study also shows that Real Effective Exchange Rate (REER) between Vietnam's and CPTPP countries' currencies has no strong effect on Vietnam's trade. Based on these findings, the article also suggests a number of policies to promote Vietnam's trade in future. In order to support businesses to better utilize opportunities and promote exports to CPTPP countries, the government of Vietnam should: (1) focus on reducing costs and time to participate in the market for production and business investors; (2) improve business investment environment to mobilize resources for production; and (3) continue to organize information campaigns to raise businesses' awareness of how to take advantage of CPTPP preferences.
Keywords
Trade; Tariff; Gravity Model; CPTPP; Vietnam;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Nguyen, T. O. (2019). Participating CPTPP: Opportunities and Challenges for Vietnam's Exports of Goods. VNU Journal of Science: Economics and Business, 35(1), https://doi.org/10.25073/2588-1108/vnueab.4209.   DOI
2 Nguyen, B. X. (2010). The determinants of Vietnamese export flows: Static and dynamic panel gravity approaches. International Journal of Economics and Finance, 2(4), 122-129.   DOI
3 Phuong, B. T. H. (2016). Compare partner countries' markets in TPP and RCEP - Export opportunities for Vietnam. Journal of International Economics and Management, 88(88).
4 Thai, T. D. (2006). A gravity model for trade between Vietnam and twenty-three European countries. Department of Economics and Society, Dalarna University, Sweden.
5 Tran, H. X., Hoang, N. T. T., Nguyen, A. T., Truong, H. Q., & Dong, C. V. (2020). China-ASEAN Trade Relations: A Study of Determinants and Potentials. Journal of Asian Finance, Economics and Business, 7(9), 209-217. https://doi.org/10.13106/jafeb.2020.vol7.no9.209   DOI
6 Tu, M. T. C., & Giang, H. T. T. (2018). Estimating the impact of trade cost on export: A case study Vietnam. Journal of Asian Finance, Economics and Business, 5(3), 43-50. https://doi.org/10.13106/jafeb.2018.vol5.no3.43   DOI
7 Trung, N. X. (2017). Vietnam Joins Trans-pacific Partnership Agreement (TPP): Opportunities and Challenges. Seaps, 40.
8 Uysal, O., & Mohamoud, A. S. (2018). Determinants of export performance in East Africa countries. Chinese Business Review, 17(4), 168-178.
9 Yang, S., & Martinez-Zarzoso, I. (2014). A panel data analysis of trade creation and trade diversion effects: The case of ASEAN-China Free Trade Area. China Economic Review, 29, 138-151.   DOI
10 Armstrong, S. P. (2011). Australia and the Future of the TransPacific Partnership Agreement. Trade Working Papers 23135, East Asian Bureau of Economic Research. http://www.eaber.org/node/23135
11 Allayarov, P., Mehmed, B., Arefin, S., & Nurmatov, N. (2018). The Factors Affecting Kyrgyzstan's Bilateral Trade: A Gravitymodel Approach. Journal of Asian Finance, Economics and Business, 5(4), 95-100. https://doi.org/10.13106/jafeb.2018.vol5.no4.95   DOI
12 Le, H. H. (2015). The TPP's Impact on Vietnam: A Preliminary Assessment. Institute of Southeast Asian Studies.
13 De Scitovszky, T. (1942). A Reconsideration of the Theory of Tariffs. The Review of Economic Studies, 9(2), 89-110.   DOI
14 Hoi, H. V. (2014). Study and compare the effects of joining the ASEAN economic community (AEC) and the agreement of the Trans-Pacific Partnership Agreement (TPP) on Vietnam's international trade. Journal of Economic Research, 12(2014).
15 Hoi, H. V. (2015). Participation in TPP - Opportunities and challenges for Vietnam's rice exports. VNU Journal of Science: Economics and Business, 31(1).
16 Hye, Q. M. A., Wizarat, S., & Lau, W. Y. (2016). The impact of trade openness on economic growth in China: An empirical analysis. Journal of Asian Finance, Economics and Business, 3(3), 27-37. https://doi.org/10.13106/jafeb.2016.vol3.no3.27   DOI
17 Laffer, A. B. (2004). The Laffer curve: Past, present, and future. Backgrounder, 1765, 1-16.
18 Lu, S. (2018). Evaluation of the Potential Impact of CPTPP and EVFTA on Vietnam's Apparel Exports: Are We Over-optimistic about Vietnam's Export Potential? In; International Textile and Apparel Association Annual Conference Proceedings (Vol. 75, No. 1). Iowa State University Digital Press.
19 Maliszewska, M., Olekseyuk, Z., & Osorio-Rodarte, I. (2018). Economic and distributional impacts of comprehensive and progressive agreement for trans-pacific partnership: the case of Vietnam (No. 124022, pp. 1-92). The World Bank.
20 Bui, T. K. P. (2017). Legal solutions to enforce Vietnam's commitments to trade in goods when joining the Trans-Pacific Partnership Agreement (TPP). Doctoral dissertation, Tra Vinh University.
21 Nguyen, A. T. (2015). Trans-Pacific Partnership Agreement (TPP) and its impacts on Vietnam (Reference book). Hanoi, Vietnam: National Political Publishing House.