Comparative analysis of the impacts of CPTPP and EVFTA on Vietnam’s textile export activities

Abstract

This paper presents a comprehensive comparative analysis of the impacts of two significant Free Trade Agreements (FTAs) – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) – on Vietnam’s textile industry. Utilizing a quantitative research methodology, the study systematically examines trade data to assess the relative effects of these agreements. The findings reveal that the CPTPP exerts a more substantial influence on Vietnam's textile exports compared to the EVFTA. This is primarily attributed to the CPTPP's more comprehensive market access and more advantageous tariff reduction schedules, which have significantly enhanced Vietnam’s export potential in key markets like Canada, Japan, and Mexico. On the other hand, the EVFTA, while contributing to a steady increase in exports to European markets, demonstrates a less varied impact. The paper’s unique contribution lies in its in-depth analysis of the differential impacts of these FTAs, providing critical insights into their role in shaping Vietnam’s position in the global textile market. The results of this study are particularly valuable for policymakers and trade strategists in developing and fine-tuning trade policies, highlighting the nuanced effects of different trade agreements on export dynamics in an increasingly interconnected global economy.