He is getting over excited, better don't disturb him.
About the support for TPP in Vietnam, it is a little bit complicated. The TPPs, as you know, it requirements is to reform State Owned Enterprises (SOEs) in Vietnam, which suck up the lion’s share of government contracts, state-provided land use rights and bank loans due to their political connections, most often leaving private sector firms outside of closed-door deals. Also, it projects information often are not make public, so it is easily lead to corruption and lack of transparency
SOEs in Vietnam, according to study and survey done by govt and NGOs, are much less productive than private companies, (pretty much same like the rest of the worlds), and SOEs in many industries stay monopoly and too much reliant and favored from government which lead to inefficiency , so more competition with foreign firms are goods, SOEs will fail if they can’t boost productivity to stay competitive with international firms . By one measure, the incremental capital output ratio, or ICOR, SOEs require three times as much input to produce a unit of output as does the domestic private sector. Yet the big banks don’t loan to these more efficient, private sector firms. Instead, politics drives them to pour resources into the SOEs.
This use of capital keeps productivity low – and salaries along with it – while stoking inflation through the oversupply of money without simultaneous improvements in the economy’s efficiency. Average workers suffer on both ends. As long as their only competitive advantage is their cheapness, they can’t ask for raises. And with all the capital sloshing around the inefficient economy, inflation eats into their already low wages. So TPPs, as many officers in our country believe the entrance of foreign products and services, under FDI (foreign direct investment) or other ways, will help Vietnam, because at the least it will train Vietnamese employees in sophisticated skills and management skills and transfer of technologies to improve their productivity. Government also got FTAs with European Unions(EUs) and Eurasian unions(EEUs) in hope both take effect in the end of this year and boost FDIs. Plus S.Korea also
Vietnam follow export oriented economy, so this will lead to migrations in hundred thousand from rural to urban and industrial areas to seek for income improvement and better future (same case like China about 10 to 20 years ago i think). And life is getting more and more expensive in the industrialized areas and often the salaries of those workers are not in matches with the cost of living or inflation in other words. In a long run, this can increase the gap between rich and poor- not a good thing. So, the big problem in Vietnam is not unemployment, but inflation. VN need a leap in her education and training.
So, naturally, private businesses in Vietnam hope for a fairer shake in a TPP world. But surprisingly, many officials are also excited about this aspect of the treaty. The common refrain is that everybody in Vietnam knows that the SOEs hold the economy back, but the political will to cut them loose, and with them all the political benefits the ruling party can gain – the cushy positions for supporters and former officials and their families – is hard to muster. The TPP can be just the push that’s needed to inject this willpower into the reform process.
In fact, the governing party has staked its legitimacy on consistently improving living conditions. Nobody looks at the slowing economy and the erosion of salaries by inflation with greater trepidation than the political elite in Ha Noi. That is why the TPP is the governing party’s top economic priority, and also why the SOEs, with all their influence, won’t be able to hold back this agreement.
About the SOEs in Vietnam, i think you can ask
@Yorozuya about it, he is quite well-known about SOEs i think. Or ask
@Carlosa about how he think of those SOEs
IMO, except some of them quite efficient and well manage, the rests are suck, govt current action to reform is good
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Ok,you are right,Vietnam is US's sweet heart,we China can't get the same treatment.
