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www.duanemorris.com
©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris...
www.duanemorris.com
Introduction
2
• I have been living in Vietnam for over
20 years.
• I am married to a Vietnamese and h...
www.duanemorris.com
AGENDA:
• OVERVIEW ON THE TPP
• HOW IS THE TPP DIFFERENT?
• HOW WILL TPP IMPACT VIETNAM?
• IMPLEMENTAT...
www.duanemorris.com4
www.duanemorris.com
How is the TPP Different?
• GDP of 12 TPP Members is nearly $28 trillion, 40% of global GDP and
one-th...
www.duanemorris.com
How will TPP impact Vietnam?
• Vietnam as the second smallest economy among
TPP members after Brunei w...
www.duanemorris.com
Implementation of the TPP –
Opportunities and Challenges
• Tariff elimination instead of tariff reduct...
www.duanemorris.com
• Cheaper goods but with higher quality, variable materials for
domestic production.
• Challenges:
– M...
www.duanemorris.com
Implementation of the TPP –
Opportunities and Challenges
• State-owned enterprises (SOEs): During TPP ...
www.duanemorris.com
Implementation of the TPP –
Opportunities and Challenges
• Sustainable development is repeatedly menti...
www.duanemorris.com
Implementation of the TPP
• Proper and timely implementation of the TPP is
the key.
• It will then inc...
www.duanemorris.com
Implementation of the TPP
• If Vietnam implements the TPP properly and in time, it
will achieve a high...
www.duanemorris.com
Recommendations – For enterprises
Understanding
Rules
Assessing
impacts
Developing
strategies
Improvin...
www.duanemorris.com
Recommendations – For the Government
14
Regulatory
reform
Change in the
mindset:
From “control,
manage...
www.duanemorris.com15
www.duanemorris.com
DUANE MORRIS VIETNAM LLC
Thank you very much!
HANOI OFFICE HO CHI MINH CITY OFFICE
Pacific Place, Unit...
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Lawyer in Vietnam Oliver Massmann presenting to the Members of the National Assembly of Vietnam on the Trans-Pacific Partnership Agreement

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Lawyer in Vietnam Oliver Massmann presenting to the Members of the National Assembly of Vietnam on the Trans-Pacific Partnership Agreement

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Lawyer in Vietnam Oliver Massmann presenting to the Members of the National Assembly of Vietnam on the Trans-Pacific Partnership Agreement

  1. 1. www.duanemorris.com ©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP. Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston | Washington, D.C. Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Boca Raton | Wilmington | Cherry Hill | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership OLIVER MASSMANN - Partner, General Director DUANE MORRIS VIETNAM LLC Presentation to the members of the National Assembly of Vietnam - Implementation and Impact of the Trans-Pacific Partnership Agreement
  2. 2. www.duanemorris.com Introduction 2 • I have been living in Vietnam for over 20 years. • I am married to a Vietnamese and have 2 children • It is my great honour to present in front of the members of the National Assembly and distinguished guests on the important topic of the Trans-Pacific Partnership Agreement. • I choose Vietnamese to speak as I love the language and the people here. Oliver Massmann General Director of Duane Morris Vietnam LLC
  3. 3. www.duanemorris.com AGENDA: • OVERVIEW ON THE TPP • HOW IS THE TPP DIFFERENT? • HOW WILL TPP IMPACT VIETNAM? • IMPLEMENTATION OF THE TPP • CONCLUSION 3
  4. 4. www.duanemorris.com4
  5. 5. www.duanemorris.com How is the TPP Different? • GDP of 12 TPP Members is nearly $28 trillion, 40% of global GDP and one-third of world trade. • The TPP is being touted as a “high-standard agreement” meaning “a landmark, 21st-century trade agreement, setting a new standard for global trade and incorporating next-generation issues”. • So-called "key elements" including the notion of comprehensive market access, a fully regional agreement, cross-cutting issues (market for all goods (including agriculture), services, regulatory coherence, competiveness and business facilitation, small and medium sized enterprises), new trade challenges (environment, labour and particularly rules on state owned enterprises); as well as, the notion of a living agreement. 5
  6. 6. www.duanemorris.com How will TPP impact Vietnam? • Vietnam as the second smallest economy among TPP members after Brunei will be the major beneficiary if it fully implements the TPP. • According to the World Economic Forum, Vietnam will have the biggest percentage change in GDP in 2025 (28.2%) • Vietnam’s income will increase by 10.5% (according to Peterson Institute for International Economics) • Vietnam will become a major manufacturing hub in the region due to continued strong growth of traditional manufacturing sectors (textile & apparel) and rapid expansion of higher value sectors such as computers, electronics and electrical equipment led by Samsung and Intel.6
  7. 7. www.duanemorris.com Implementation of the TPP – Opportunities and Challenges • Tariff elimination instead of tariff reduction in most tariff lines is a driving factor for Vietnam’s exports when accessing other TPP countries’ markets, especially big trading partners being the U.S and Japan. • Challenges: – How to qualify for the duty-free status? (regional value content for example) – Strict Technical Barriers to Trade, Sanitary and Phytosanitary requirements 7
  8. 8. www.duanemorris.com • Cheaper goods but with higher quality, variable materials for domestic production. • Challenges: – More competition – In certain sectors, for example, pharma or agriculture, high IP protection will result in expensive products. People will have more difficulty in purchasing high quality medicines or Vietnam’s agricultural products will be less competitive. – In agricultural sector (mostly affected by the TPP), agricultural sustainability and socio- economic development of these areas can only be improved by collaboration among 4 players - State agencies, scientists, farmers and buyers. The Government should expand the implementation of this model into many other provinces besides Thanh Hoa and South East regions of Vietnam. 8 Implementation of the TPP – Opportunities and Challenges
  9. 9. www.duanemorris.com Implementation of the TPP – Opportunities and Challenges • State-owned enterprises (SOEs): During TPP negotiations, SOE sectors were discussed from the very first rounds when they negotiate rules of constructing and implementing competition policies. • The Chapter on State-owned Enterprises and Designated Monopolies puts a huge pressure on SOEs performance. As such, Vietnamese Government will have to accelerate the equitization of SOEs, to reduce the State control in SOEs and to push SOEs to operate in line with market principles. • Government will need to focus its efforts to assist SOEs to adapt to non-preferential treatment or access to Government spending, or special access to land and investment capital. • The equitization of SOEs should focus on change in ownership structure of SOEs after equitization, not only relating to the number of SOEs participating in the reform as the current model reveals.9
  10. 10. www.duanemorris.com Implementation of the TPP – Opportunities and Challenges • Sustainable development is repeatedly mentioned in the TPP: “The Parties also acknowledge that effective domestic coordination of trade, investment and development policies can contribute to sustainable economic growth.” “The Parties recognise the potential for joint development activities between the Parties to reinforce efforts to achieve sustainable development goals.” (Chapter 23 of the TPP) • However, there is no standard and test for sustainable development in Vietnam. The Government should adopt sustainability test in accordance with the TPP. • Investment in renewable energy is also needed for sustainable development. The Government must make sure that EVN is moving on getting Renewable energy PPAs concluded with foreign investors 10
  11. 11. www.duanemorris.com Implementation of the TPP • Proper and timely implementation of the TPP is the key. • It will then increase Vietnam’s competitiveness with other countries in the region. 11
  12. 12. www.duanemorris.com Implementation of the TPP • If Vietnam implements the TPP properly and in time, it will achieve a higher level of legal certainty in certain commercial sectors than in highly industrialized countries like Germany as Germany does not adopt Investor-State Dispute Settlement principles as Vietnam does in the TPP. • The TPP will then create a huge influx of foreign direct investment • Vietnam will be one of the Leading countries in South East Asia for decades to come. 12
  13. 13. www.duanemorris.com Recommendations – For enterprises Understanding Rules Assessing impacts Developing strategies Improving competitiveness Contributing to policy-making process 13
  14. 14. www.duanemorris.com Recommendations – For the Government 14 Regulatory reform Change in the mindset: From “control, manage” to “support, service” development of private sector Reform to SOEs
  15. 15. www.duanemorris.com15
  16. 16. www.duanemorris.com DUANE MORRIS VIETNAM LLC Thank you very much! HANOI OFFICE HO CHI MINH CITY OFFICE Pacific Place, Unit V1307/08, 13th Floor, Suite 1503/04, Saigon Tower 83B Ly Thuong Kiet, Hoan Kiem District 29 Le Duan Street, District 1 Hanoi, Vietnam Ho Chi Minh City, Vietnam Tel.: +84 4 39462200 Tel.: +84 8 3824 0240 Fax: +84 4 3946 1311 Fax: +84 8 3824 0241 Contact email: omassmann@duanemorris.com 16

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