Connect with us

Southeast Asia

CPTPP Serving Vietnam as Opportunities and Challenges

Published

on

CPTPP is originated from the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP) (it is also so call P4) signed in 2005 by Singapore, Chile, New Zealand and Brunei. Since September 2008, the United States, Australia, Peru, Vietnam, Malaysia, Canada, Mexico and Japan have jointly negotiated at the aim of setting up the Trans-Pacific Partnership Agreement (TPP). The TPP negotiation process ended in 2015 under the agreement of the 12 member states; however, Trump administration announced its withdrawal from the agreement in January 2017. After a number of adjustments, including postponing the implementation of the 20 TPP provisions with the expectation that the United States would return to the Agreement, the 11 remaining TPP members unanimously continued to promote this process by establishing Comprehensive and Progressive Agreement for Trans-Pacific Partnership -CPTPP). After completely reviewing the content and approved by the member parliaments, estimated by March 2018, CPTPP will officially become a large economic zone in Asia-Pacific with a population of over 460 million, contributing 14% of world GDP and 1/6 of global trade.

The agreement is expected to establish a new common framework for regional free trade arrangement for Asia-Pacific countries, to support trade, to attract foreign investment, and to promote institution reformation in those countries. CPTPP has the basic advantages as the members of the negotiation are the countries that have been strongly committed to the trade liberalization. Given the disclosed commitments, CPTPP is considered as a model treaty for the 21st century because of its overwhelming scale and influence in comparison with other trade agreements regionally and globally.

Given the competitiveness, the economic size and the inadequacies of the current institutional system, it is surprised that Vietnam has strongly participated in CPTPP. Compared with other members, it has the least competitive economy and the loosest legal system. Despite its 20-year-old experience in the process of international economic integration, Vietnam lacks the practices in a highly competitive and demanding integration environment since it is only familiar with first-generation FTAs, where the open commitments and reform pressures are readily accepted in a transitional and distinctive economy.

Meanwhile, CPTPP’s regulations set out in the negotiations are evaluated as far beyond the ability of the current economy of Vietnam. What is the motive of Vietnam to join CPTPP?

Given the economic size of the members and the terms of trade liberalization, joining CPTPP is obviously advantage to empower Vietnamese economy in the Southeast Asia in terms of economic growth, trade as well as FDI attraction. In the economic perspective, Vietnam is a country to achieve the most benefit from the CPTPP.

Firstly, the opportunities to increase the export of goods that are the advantages of Vietnam (i.e. textiles, footwear, electronic products and equipments) are relatively high by combining the tariff reduction and the experiences in these markets.

Secondly, the attraction of foreign investment into Vietnam is greatly promising. The access to large markets such as Japan and Canada together with the clearer commitments to improve the investment environment and protect intellectual property rights will become a significant attraction for international investors. Moreover, Vietnam, under the framework of CPTPP, is able to attract large inflows from the member countries through the membership of regional economic organizations such as AFTA and ACFTA.

Thirdly, the chances of faster economic growth are strongly wide. The expansion of the major export industries such as textiles, footwear, fishery, etc., will help stimulate the income growth from domestic production, thereby support the increase of the overall demand.

Fourthly, Vietnam will have an opportunity to form a more comprehensive economic structure. CPTPP will urge the domestic investors as well as the regional ones to invest in the supporting industries to create local material resources given the extremely high standards on the place of origin.

Fifthly, it is a chance to complete the institutions that govern the market economy. CPTPP sets out a clear legal framework for not accepting concessions to any business. Because of its high and foreseen requirements on policy transparency, compared to many other agreements, CPTPP could become one of the important premises for Vietnam to carry out institutional and market reforms thoroughly and comprehensively.

However, among the countries participating in CPTPP, Vietnam achieves the lowest level of development and faces big challenges.

Firstly, the production industry structure is not consistent with the provisions of CPTPP. The economy is not well-prepared and the supporting industry is weak. With regard to the requirements of origin, the sectors which are the advantages of Vietnam’s export sector are not able to exploit the concessions from the CPTPP because their inputs do not contain domestic factors.

The second challenge is from the stagnation of the enterprise system. The adaptability to the market economy of Vietnamese enterprises is weak. The lack of an effective investment strategy for the supporting production industry and “traditional outsourcing” works have made the overall benefit of the economy declined.

Thirdly, the limitation of state enterprises’ role in the national economy becomes a content of CPTPP. The external pressure is positive only if it meets the community benefits. If the selection of CPTPP is purely commercial-economic aspect, it will not cause the objection against the reformation within the SOE system.

The fourth challenge is from the increasing competition of goods from the members of CPTPP. At present, Vietnamese enterprises are well-protected by the high tariffs. The trend and demand for zero tariff reduction will be applied to CPTPP members in the coming time. In the analysis of the export structure of CPTPP countries, it can be seen that the manufacturing industries of Vietnam facing difficulty are automobile industry and agriculture, especially the husbandry which remains mall and fragmented, and unable to compete against the large, experienced and traditional competitors.

The fifth challenge from the requirements of intellectual property protection in CPTPP is much more critical. The continuing possibility of “appearing to court” by infringing intellectual property law is present in countries previously without adequate preparation of intellectual property law. Furthermore, the requirements for increasing the level of protection of intellectual property rights over inventions, copyrights, and trade marks can lead to the escalation of drug prices and create a health burden to the emerging economy like Vietnam. More than that, the measures to protect intellectual property related to biology also affect agriculture which accounts for more than 60% of the population of Vietnam. The prices of agricultural products such as veterinary drugs, fertilizer, etc. will thereby grow significantly, which increases costs and reduces the efficiency of agricultural production in general.

In regard of the need for economic reform and the promotion of economic growth, the process of further integration into the world economy is not allowed to slow down. The question is what Vietnam needs to do to facilitate the upcoming integration roadmap.

Firstly, administrative reform and severely corruption offence are the most important things. It is shown that the WTO supports free market economy so that it could operate and develop only in a healthy competitive environment. Since the joining in the WTO, Vietnamese economy has not really created a healthy competitive environment. Meanwhile, corruption has created more conditions for interest groups to ramp up and distort even the good national policies. If the administrative procedures remain cumbersome and troublesome, corruption will still restrain the required transparency in corporate management. In accordance, CPTPP is not an opportunity, but a challenge to the whole system.

Secondly, the reformation of the legal environment and policies to ensure a single “standard” prescribed by CPTPP is a difficult for Vietnam. But in the long run, this reform of the institutional environment towards the international “rules” is a necessary condition for growth in the context of globalization. In this perspective, although adjusting the policy system involving the regulation of CPTPP is a difficult and costly process, Vietnam’s commitments can be seen as an external “push” to provide additional momentum for domestic efforts towards a transparent institutional environment and economic growth.

Thirdly, it is needed to organize the perfect communication to all classes of people, especially the business and the production circles in the countryside. The participation in CPTPP without fast updating to the farmers might cause the loss of market, the high pressure of competition, and even the legal disadvantage in disputes and sues.

Fourthly, the reform of SOE and the development of SMEs is the key solution. Given the population and economic growth, the number of enterprises in Vietnam is relatively low. This is a major constraint in economic development, employment, creation of competitive markets and the mobilization of resources from society.

In the context of limited resources and high demands of work, the development of these types of enterprise is appropriate not only to the internal capacity but also the preferences of CPTPP. Hence, it is essential to reform SOEs in a substantial way and enable them to have a transparent business environment.

Assoc.Prof.Dr.BuiThanh Nam, University of Social Sciences and Humanities, Vietnam National University, Hanoi

Continue Reading
Comments

Southeast Asia

Seven Years of UNITE Thailand: Freedom to be Free

Rattana Lao

Published

on

An art camp in Loei Province with the painting of UNITE Thailand on the theme of “our home” done by Archee. photo: Rattana Lao

BANGKOK – During the peak of Thailand’s political warfare between the Red and Yellow shirts, I was a graduate student at Teachers College, Columbia University pursuing a Doctorate in Political Science with a specialization in Comparative and International Education.

As Bangkok’s buildings were burnt down, I sat in tears in front of my computer could not comprehend nor tolerate the sights and senses of such catastrophe.

What’s happening to Thailand? A place we once called the land of smile.

I put myself together and defended my proposal. I came home for my dissertation research. But once I landed, I began something entirely different.

I called my friends from all walks of lives: academics, businesses, politics and civil society and we started talking about the future of Thailand what to do, what can we do?

Inspired by the KEEPS project at the London School of Economics, where I did my Master of Sciences in Development Studies, we initiated an art project for political liberation.

Something Freire would be proud of.

We took paint colors, brushes and canvases to rural areas and began using art as mean to break political deadlocks – to initiate a conversation. We asked our students to paint the future of Thailand in their visions.

From a humble beginning in 2011, we grew in size and scope. UNITE Thailand is now a global youth networks of like-minded individuals who want to make a difference for Thailand. We are an educational project with 3,000 members.

We have collaborated with the Open Society Foundation in 2012 to create the 1st IDEA Asia Youth Forum where we brought together 200 Asia youth from 22 countries to work with Thai university students in Thailand for 2 weeks.

We have worked with the International Labour Organizations in 2013 – 2014VDO to promote the Sapansiang Campaign that addresses the positive images of migrant workers in Thailand.

Anna Olsen, the Technical Specialist TRIANGLE in ASEAN program of the ILO said, “working with UNITE Thailand allowed us to reach young Thai people with our messages of protection and promotion of the rights of migrant workers who contribute so much to Thai society and development.”

Since its inception, MCOT Thailand and the Anandamahidol Foundation have helped to scale up our 20 art camps for our students nation-wide by creating ongoing documentaries that capture the essences of what we try to do on the ground.

Sitting here on the eve of International Youth Day of 2018, I am writing to my students globally that never let anyone tell us what we are and are not capable of. The power of the young is momentous and paramount. Never let your inspiration, motivation and determination die down just because what we think seem impossible or someone else tell us so.

Thailand is far from where we want it to be. It’s still rotten with corruption, rampant inequality and lack democracy. But each brush we stroke, each project we strike, we do it with hope and dignity, we do it to empower and we aspire to make a difference.

Mayaclear Aphornsuvan, UNITE Thailand Youth Representative, encapsulates her seven years experiences with the movement.

“Opportunities, dreams, and chances seem so far away when no one is by your side. That’s how it felt to me when I was in high school, at least. But I crossed paths with UNITE Thailand by chance, and it was the first time a group of people believed in me. And in turn, this gave me all the strength I needed to believe in myself and others. UNITE Thailand gives opportunities to those who often get ignored. But the first opportunity in one’s life is oftentimes the most important.  UNITE Thailand means the world to me, because they gave me a whole new world of opportunity and dreams.”

On behalf of UNITE Thailand, we thank our friends from all over the world for showering us with your trust and enabling us to keep dreaming.

We, 3,000 of UNITE Thailand, dedicate this project to His Majesty the King Bhumibol Adulyadej, Rama the ninth to the Chakri Dynasty, our King of Education, for not only sponsoring my transatlantic education through the Anandamahidol Foundation, but for providing Thailand with a necessary guiding light. We wish his soul rest in peace. We wish him well.

We promise to be kind and find peace from within outward.

Continue Reading

Southeast Asia

What are the causes of the current calamity in Laos? An Interview with Dr. Lia Genovese

Rattana Lao

Published

on

The Xe Pian-Xe Nam Noy hydropower project is financed by companies from South Korea (SK Engineering and Korea Western Power), Thailand’s Ratchaburi Electricity Generating Holding and the Lao government. A statement issued by Mekong Eye on 31 July 2018 stated that Japan is also involved in its financing.

A devastating incident occurred in the Sanamxay district of Attapeu province in southern Laos. On the evening of 22 July 2018, engineers at SK Engineering discovered that one of the project’s supporting dams had been partially washed out and notified the Lao authorities. Apparently, efforts to repair the damaged structure were hampered by the state of the roads, which delayed the necessary heavy equipment reaching the area before disaster struck the very next day. On 23 July, the top of a saddle dam at one of the Xe Pian-Xe Nam Noy reservoirs collapsed, releasing billions of cubic feet of water. Over 6,000 people have already been evacuated to emergency shelters. The flood has caused severe damage to private property and infrastructure. The dam collapse has also affected villages downstream in Cambodia.

The precise death toll is still unknown and has oscillated between 31 and 35 victims. On 5 August, the Chinese agency Xinhua stated that 34 people were confirmed dead and scores more are still unaccounted for.

Early official statements calling the catastrophe a natural disaster caused by seasonal rains, are being disputed by experts. During an interview with the BBC World Service on 25 July, Dr. Ian Baird, Associate professor of geography at the University of Wisconsin-Madison, USA, unequivocally attributed the disaster to poor management. Furthermore, the South Korean building company, SK Engineering & Construction, asserts that “it warned the [Lao] government”.

The disaster could have been prevented with better management, greater risk assessment and better building standards, according to the Lao government. On 27 July, four days after the dam collapse, the Lao Energy Minister, Mr. Khammany Inthirath, told a press conference in Vientiane that the disaster was caused by substandard construction.

Attapeu province is highly contaminated by unexploded ordnances (UXO, remnants of the Vietnam conflict), and although parts of the province have been cleared of UXO, the UN recommends caution when digging, since cluster bombs are more likely to be buried (‘Lao PDR: Flash Flooding in Sanamxay’, District Office of the UN Resident Coordinator Situation Report No. 05 (as of 1 August 2018).

Livestock, buffaloes and domestic animals have perished. On 3 August, the Vientiane Times reported the loss at more than 12,000 animals, as well as more than 19,000 chickens and other fowl, while 280 fishponds were damaged.

What are the immediate needs to help rebuild Laos?

Numerous governments have sent funds and humanitarian aid, including Thailand, Vietnam, China, Singapore, Cambodia, the European Union (EU), the US and North Korea. It seems that supplies have reached the affected areas with some difficulty, due to the state of the roads, damaged by the flood and covered in rivers of mud. According to a Voice of America report published on 6 August: “Satellite images show Attapeu lying on a bend of the river with a pre-crisis network of roads, but a later image shows the flooded area as a brown mass of mud with few structures left recognizable”.

Cash donations have also been collected. The Lao bank BCEL set up the One Heart fund-raising initiative for people to donate by debit or credit cards. In Thailand, donations collected by Krungthai Bank for the flood victims had reached 25 million baht by the end of July (account number 067-12886-4 of Krungthai Bank, Government House branch, Cash donations are proving effective in helping victims of this disaster, while the delivery of relief aid (blankets, medicines, safe drinking water, food, etc.) is hampered by practical difficulties in accessing the affected areas.

Do you think the country is resilient enough to weather this chaos?

As a concerned citizen of the world, rather than an expert on development strategies, in my view there are good chances that Laos, and particularly the affected areas in Attapeu province, will weather this catastrophe. Laos has much at stake in its chosen development strategy aimed at energy generation. This is a setback in the country’s ambitious plan to have a total of 100 dams by 2040. Approximately, 85 percent of the energy generated by these dams is exported.

What needs to be done differently for Laos to recover and sustain?

Since 1971, the UN has classed Laos as a Least Developed Country (LDC), a label the country is trying to shed. Laos is traversed by the Mekong for hundreds of miles, from north to south, before this great river flows into Cambodia and the delta in Vietnam. Laos has said in the past that it is making the best of a punishing geography, due to the country being landlocked.

Yearly, the sale of energy contributes around $650 million to the country’s GDP, but still only half of the revenue generated by ore production from mining investment projects approved by the central government, which in 2017 reached around $1.2 billion.

Unlike some of her neighbours (Thailand and the Philippines, chiefly), Laos has shown negligible interest in the potential of renewable energy, despite enjoying an average of 1,800-2,000 hours of sunlight per year, or 200-300 sunlight days per year, particularly in the south of the country. Consequently, progress in sources of renewable energy has been slow and foreign investment has lagged behind, in contrast to the aggressive push for hydropower projects.

What Laos wishes to do is secondary to other countries’ vision for Laos. A number of countries, as well as NGOs, environmental and human rights organisations, have expressed their reservations about Laos’ stated hydropower goals, because of the cost to the country’s ecology, and the human cost caused by the displacement of thousands of families. Laos’ potential in generating energy for sale was known to the French colonisers a century ago but, despite a number of surveys shortly after the 1893 annexation of Laos as the fifth province of French Indochina, the French colonial government elected not to exploit the potential of the Nam Theun river, due to the massive investment required in building an often non-existent infrastructure. Only in recent years, was this massive hydropower project built, with funding from the World Bank, among others.

Laos can recover from this tragedy, through its own resources and with help from the international community.

What can the public immediately do to save Laos?

In the immediate aftermath of this man-made disaster, the public should follow events and contribute with cash donations and goods in kind, and pay attention to messages from the Lao government and aid agencies as to the most effective ways to assist the affected communities.

For the longer term, a rethink of Laos’ development goals is essential. Much of Laos’ energy for sale is exported to its neighbours, where it is squandered on excessive air-conditioning for shopping malls, supermarkets, offices and homes, entertainment places, etc. Laos’ energy-hungry neighbours need to understand the hidden “costs” to a poor country like Laos, where the race to become the “Battery of Southeast Asia” is being achieved at the expense of natural resources, human capital and tragedies.

Concerned members of the public can lobby their respective governments for civil society to be respected in Laos, as a forum for free expression. It is essential that Lao citizens are involved in the consultation process for new hydropower projects or other large-scale projects which involve environmental degradation, a high level of risk and loss of a traditional way of life for communities along the Mekong.

Building dams along the Mekong must be discussed as a transnational issue, rather than pertaining to Laos alone, as was made clear in the Xe Pian-Xe Nam Noy disaster affecting downstream villages in Cambodia.

Pressure should be applied on the Lao government to ensure transparency in its investigations of Lao communities affected by the massive flooding in Attapeu province.

The 31 July statement issued by Mekong Watch, mentioned earlier, urges donor countries and development agencies to support the Lao government “in seeking compensation from the dam companies, and re-direct their aid policies that rely on hydropower development”.

About Lia Genovese

Lia Genovese holds a PhD from SOAS-University of London for a Dissertation titled ‘The Plain of Jars of North Laos – Beyond Madeleine Colani’. Her current research interests include: the Plain of Jars of Laos; French colonial archaeology; the megaliths of South and Southeast Asia; Iron Age mortuary practices; cultural heritage and conservation. She is currently working on a critical biography of the life and work of the French archaeologist Madeleine Colani.

Continue Reading

Southeast Asia

Explaining Gendered Wartime Violence: Rohingya Ethnic Cleansing

Devika Khandelwal

Published

on

Image source: Al-Jazeera

The United Nations described Rohingyas as ‘amongst the most persecuted minority groups in the world.’ News reports and refugee testimonies have confirmed that the plight of Muslims in Rakhine State of Myanmar is atrocious. The humanitarian crisis taking place in the Rakhine state has led to the death of an appalling number of Rohingya’s Muslims. It has been reported, that nearly 500,000 people have fled destruction of their livelihood and, are currently living in refugee camps in Bangladesh. The UN reports suggest that Rohingyas have faced “killings, torture, rape and arson”, by Burmese troops. It has been categorised as a ‘textbook case of ethnic cleansing’ of Muslims in Myanmar.

Rohingya Muslims represent the largest percentage of Muslims in Myanmar, and the majority lived in Rakhine state before the violence broke out. Myanmar is predominantly a Buddhist country which has for decades denied Muslims citizenship, they have been subjected to brutal government and police violence, and their identity has been decreased to that of an ‘illegal immigrant.’ On the 25th of August, 2017 the Rohingya militant army launched a deadly attack on the Muslims which has culminated into a systematic case of ethnic violence, turning into ethnic cleansing. They have slowly, but successfully forced majority of the Muslims to flee the country, resulting in one of the deadliest case of violence in the 21st century.

Within this Muslim minority exists another kind of minority, ‘Rohingya Women’ who have been subjected to sexual violence and rape by the army militants. It has been reported that tens of thousands of young girls and women of the Muslim community have been sexually violated and raped by the army militants In the report prepared for the UN Commission on Human Rights, Gay J. McDougall defined wartime rape as “a deliberate and strategic decision on the part of combatants to intimidate and destroy ‘the enemy’ as a whole by raping and enslaving women who are identified as members of the opposition group.” However, wartime rape is not a new phenomenon. Many historical and anthropological researchers have provided us with evidence that rape during war can be traced back to earlier wars. It was reported that during the Second World War, the city of Berlin witnessed extremely high levels of rape and sexual violence against women by the Soviet forces. It has been estimated that around 900,000 women were raped and violated during the war.The infamous ‘Rape of Nanking’ is another case where Japanese soldiers reportedly raped an estimated 20,000 to 80,000 women in the city of Nanjing, China in 1937.

According to the Human Rights Watch report titled ‘All of My Body was in Pain: Sexual Violence against Rohingya Women and Girls in Burma’, women and girls are brutally being raped and sexually violated, humiliated, beaten up and even killed by the Burmese militants. They also suffer from the ordeal of seeing their children, parents or partners being murdered in front of them. The Burmese militant army is using systematic rape as a weapon of war in the massacre of the Rohingyas – using women to be the easy target, and thereby making the Rohingya crisis a grave gender concern. Priyanka Motaparthy, a senior researcher in the Emergencies division of the Human Rights Watch, mentions in a Human Rights Watch report, “These horrific attacks on Rohingya women and girls by security forces add a new and brutal chapter to the Burmese military’s long and sickening history of sexual violence against women.”

It is believed that sexual violence and rape is systematically used against women during wartime due multiple reasons. In addition to women being ‘easy targets’, they are subjected to this ordeal in order to break down the reproductive cycle of an ethnicity, which thereby can result in eliminating that ethnic population altogether. It is also used to decrease or break down the morale of their enemy population, who are responsible for securing their women and girls, thus weakening their opponents. Therefore, the connecting factor between ‘gender based violence’ and ‘wartime’ are the underlying patriarchal values that persists in societies and dictates their culture. Within this structure, it is often assumed that a woman’s honor resides in her reproductive system, violating her reproductive system is seen as a way of stripping her honor, subjecting her to humiliation and furthermore gaining ‘power.’ It is a way of systematically destroying a community as a whole.

This is not the first time the world is witnessing gender based violence. However, the silence on the issue and lack of action by international authorities such as the United Nations is alarming. Urgent and crucial steps need to be taken by the Burmese government along with other International Organizations to bring relief to these women and girls. There is also an urgent need to implement stringent policies and necessary actions must be taken against people who use of sexual violence during wartime. However, the most urgent need of the hour is to overthrow patriarchal values from societies all across the world. Even though this is optimistic, it is important to instill a sense of equality between men and women, which in turn could help in eliminating the use of sexual violence as a weapon of war.

Continue Reading

Latest

Trending

Copyright © 2018 Modern Diplomacy