Officially effective from January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) with the participation of diverse members is the leading economy in the world. RCEP covers countries with a population of up to 2.2 billion people, equivalent to 30% of the global population, creating a large and potential market for exports when it comes to eliminating at least 92% of import tariffs between the two countries. signatories within 20 years.
Increase export turnover, reduce the risk of “out of tune”
According to the assessment of many economic experts, the RCEP Agreement opens up more opportunities for Vietnamese enterprises to increase exports and expand markets, especially for commodities that Vietnam has advantages such as rice, coffee, etc. In particular, in the context of the Covid-19 pandemic and China’s relatively rapid recovery, the significance of RCEP for Vietnam’s exports becomes even more important.
Mr. Nguyen Anh Duong, Head of the General Research Department, Central Institute for Economic Management (CIEM – Ministry of Planning and Investment), acknowledged that the difference that makes RCEP unique is its association with the network. regional production and supply chains. This is not only a trade and investment agreement but also links Vietnam to a large playing field, which is a production chain in the region.
“RCEP puts Vietnam’s cooperation in the region into a new chapter when a new set of trading partners has been interested and the potential will be increased by many countries. RCEP helps to increase exports, increase income for the economy with the reduction of tariff and non-tariff barriers as well as initiatives related to OSS or paperless trade… helping commercial activities happen faster, on time, at less cost and on a larger scale, “said Mr. Duong.
The greater meaning of RCEP, according to Mr. Duong, is that Asia is currently recovering quite quickly and soon after Covid-19, so RCEP helps reduce Vietnam’s “risk of getting out of tune” in the economic recovery process compared to that of RCEP. with the recovery momentum of the region. When participating in the common playground in RCEP, the regulations on rules of origin, regulations, standards of goods, and standards of enterprises also need to be harmonized, helping businesses have better opportunities when participating in the value chain. in a more profound way.
Affirming that in the long term, RCEP will create a new supply chain in the region and Vietnam becomes a “link” of the supply chain, which is a great opportunity for export, said Ms. Nguyen Thi Thu Trang, Director of the Center WTO and Integration (Vietnam Federation of Industry and Trade) said that when exports along with the supply chain increase, Vietnam will reduce the risk of being applied trade remedies.
According to Ms. Trang, one of the most remarkable points of the RCEP Agreement is that it is designed to cut costs and time for traders when it allows them to export goods to any signatory country. without meeting country-specific requirements.
“If in the CPTPP, it is difficult for Vietnam to take advantage of tariff preferences for textile products because of internal rules of origin because most of Vietnam’s raw material supply originates from China, then when joining RCEP, the cost burden of importing raw materials and will be reduced thanks to the preferential tariffs,” said Ms. Trang.
The challenge of innovating enterprise standards
Besides the advantages, the RCEP Agreement can bring competitive pressures on Vietnamese goods and services, especially in the context that Vietnamese enterprises are still heavily dependent on imported raw materials. from the outside. Vietnamese enterprises will also face many difficulties and challenges, mainly because enterprises do not know the criteria and conditions for export goods to enjoy preferential treatment.
According to Mr. Nguyen Anh Duong, Head of General Research, Central Institute for Economic Management (CIEM – Ministry of Planning and Investment), RCEP also entails a number of trade challenges such as trade deficit. , the degree of autonomy in the supply chain and the ability to adapt to regulations in each market. RCEP also has higher requirements for agricultural and aquatic products imported into the Chinese market.
Especially, when the world is more and more dependent on trade with China, it is not easy to deal with new barriers and regulations. However, through RCEP, businesses will see positive opportunities and challenges to raise the value and level of autonomy of enterprises in the world playing field. When the Covid-19 epidemic spread, many businesses reported that they had suffered greatly from the disruption of the value chain, when importing raw materials had difficulty, which further promoted the self-reliance in raw materials of enterprises.
“Enterprises need to find ways to adapt to the market in RCEP according to their capacity and ability to meet the requirements and requirements of the market. Enterprises need to have a strategy to raise the standards of export goods, as well as quickly take advantage of the opportunity to transfer technology from partners in a methodical way like Japan, because if they meet Japanese standards, they will satisfy their needs. satisfy the export conditions in many other markets,” advised Mr. Duong.
Upholding the regulations on the origin of goods in RCEP, Ms. Do Thi Thu Huong, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), noted that in order to enjoy preferential treatment in RCEP, exported goods must meet certain requirements. guarantee rules of origin, through certificates of origin of goods.
However, many enterprises cannot prove the origin rate according to regulations because they have not fully collected the certificate of origin during the process of purchasing inputs for production and business, so they are not entitled to the rate of origin. Preferential tax. In addition, the rate of taking advantage of incentives from RCEP is also affected by the cost of complying with the rules of origin,” said Ms. Huong.
Source: vov.vn
Source: Vietnam Insider