State-owned Enterprise Reforms in the TPP Negotiation: Is it a win-win for Vietnam?

Author Name LE Thi Anh Nguyet  (Ho Chi Minh City University of Law)
Creation Date/NO. July 2015 15-E-092
Research Project Comprehensive Research on the Current International Trade/Investment System (pt.II)
Download / Links


The potential market distortions caused by state-owned enterprises (SOEs) have attracted significant attention from Trans-Pacific Partnership (TPP) members during the negotiations for this agreement in the 21st century. Particularly, in the TPP meetings, Vietnam, as the only nonmarket economy TPP negotiator, has been the focus of discussions concerning SOE issues and reforms to ensure a level playing field for all business sectors, both domestically and regionally. On one hand, SOE reforms can support TPP member governments in financial management and corporate governance more effectively and transparently. On the other hand, the reforms have also left a substantial burden on implementation by the Vietnamese government and the competitiveness of SOEs. The paper (1) examines the principles of SOE management in the TPP negotiation; (2) analyzes the equitization of SOEs in Vietnam in the light of nondiscrimination and on a commercial basis principle; and (3) evaluates the potential cost and benefit of its nonmarket economy status in TPP negotiation.