- The Regional Comprehensive Economic Partnership will be extremely beneficial to Vietnam and the ASEAN countries (RCEP).
- RCEP will streamline procedures, save firms time and money, and boost their competitiveness.
- Southeast Asia is becoming an increasingly fertile field, with many Chinese enterprises relocating here to establish factories as the consumption market expands and grows.
This agreement is expected to help strengthen partnerships, job opportunities, and income for the economic sector that accounts for 30% of global GDP.
From the perspective of China, Vietnam, and ASEAN countries will benefit greatly from the Regional Comprehensive Economic Partnership (RCEP).
Vietnam benefits from RCEP
Currently, more than a third of plastic products produced by Vietnam are exported to China. After the RCEP comes into effect, the export potential will be further expanded. At that time, many Chinese investors will build factories and set up warehousing and logistics systems in Vietnam to further promote the development of regional value chains.
“The agreement helps to unify standards of origin, customs procedures, inspection and quarantine, and technical standards, creating a stable and free business environment and connecting businesses,” said Mr. Xinquan, China WTO Research Institute, said.
RCEP will simplify procedures, help businesses save time and money, improve competitiveness.
Regarding the supply of raw materials, the certificate of origin continues to be standardized, which will help Vietnamese businesses enjoy preferential tariffs. After January 1, more than 65% of products traded between China and ASEAN countries, Australia and New Zealand were immediately tax-free.
“The important benefit that RCEP brings is that China strengthens cooperation with ASEAN countries in particular and other countries in general. Each country fully promotes its advantages, contributing to the completion of the Asian value chain.” Professor Cui Fan, China University of International Business and Economics said.
RCEP promotes the formation of new supply chains
China’s total trade with other RCEP members accounts for nearly a third of the country’s total foreign trade. In the context of China’s aging population and high wages, ASEAN in general and Vietnam, in particular, will enjoy many benefits from participating in the supply chain when many large enterprises in China relocate their factories to take advantage. Abundant and cheap labor advantages.
“We will expand investment cooperation with Vietnamese companies we have invested in many companies. ASEAN, the production cost of products is lower than China. Now many orders we transfer to factories in Vietnam”, said Mr. Dai Kien Quoc, leader of Bosideng company, Jiangsu, China.
Southeast Asia is becoming an increasingly fertile region for many Chinese enterprises to establish factories, as the consumer market expands and consumption power grows. While skilled human resources are available, the cost is lower than in China.
Deputy Minister of Industry and Trade Tran Quoc Khanh said: “RCEP in the short term will not create a big boost for exports, but in the medium and long term, it will create a new supply chain in the region, in the long term benefits We will see, when the supply chain moves to this region and Vietnam becomes a part of that supply chain, it will create an impetus for exports to increase.”
European-Vietnam Free Trade Agreement (EVFTA) promotes the increase of FDI from the EU into Vietnam