Vietnam's membership in the Trans Pacific Partnership (TPP) will enable it many advantages to overtake Malaysia, economically, if Malaysia does not join the pact with a combined 800 million population comprising GDP of USD28 trillion compared to Malaysia's domestic market of only 29.5million population with GDP USD300 billion.
This was revealed by Datuk J. Jayasiri, Trans Pacific Partnership Agreement (TPPA) chief negotiator of the Ministry of International Trade and Industry (Miti) recently while briefing civil servants as the agreement implementers and private sector representatives here recently.
TPP's current membership include Australia, Brunei, Canada, Chile, Japan, Malaysia, Peru, Mexico, New Zealand, Singapore, Vietnam and US.
The TPPA is a multilateral free trade agreement aims to further liberalise the economies of the Asia-Pacific region.
It covers a broad spectrum of areas and has 29 chapters, some areas affect public health, environment and courts system.
"Besides, Vietnam has a Free Trade Agreement (FTA) with European Union (EU), while Malaysia does not," said Jayasiri.
Vietnam, located just opposite West Coast Sabah across the South China Sea, has attracted Malaysian investments, including property development in which two developers in Sabah having projects here – S P Setia and Gamuda, are having bigger projects in Vietnam.
Sabah imports rice direct from Vietnam through Bernas monopoly cover although the direct shipping was arranged by other entrepreneurs, some of whom also have interest in fishery ties with Vietnam or Vietnamese crew.
The irony is that with the advent of the Asean Community, the suspension of the barter trade between Sabah and Sulu Sea territories and Sulawesi has to happen, but then, the trade prospects with Vietnam could brighten in the light of this development. Some Vietnamese products are already on sale in our supermarket here notably packaged dried fruits other than rice.
For the record, Malaysia has concluded and implemented seven bilateral FTAs with Japan, Pakistan, New Zealand, India, Australia, Chile and Turkey.
There are six regional FTAs with AFTA, China, Korea, Japan, Australia/New Zealand and India, while the Trans-Pacific Partnership Agreement (TPPA) is signed but not yet to ratified.
Under negotiations, are the processes for the Malaysia - EU FTA (MEUFTA), Malaysia - EFTA Economic Partnership Agreement (Meepa), Regional Comprehensive Economic Partnership (RCEP) and the Asean - Hong Kong FTA (AHKFTA).
Bernas' monopoly and the Bumiputra agenda will be preserved by the government under the TPPA, while Malaysia is set to enjoy wider market access, investment flows leading to more job creation and technology transfer.
Source: http://dailyexpress.com.my/
Keywords: Viets, to gain, M'sia, stays out of TPP
