RCEP a boost for Vietnam’s economy post-pandemic

The Regional Comprehensive Economic Partnership (RCEP) will come into effect on January 1, 2022 and open up more opportunities for Vietnam to connect with member countries in terms of trade and investment, according to the Ministry of Industry and Trade (MoIT).

It will contribute to the multilateralization of free trade agreements (FTAs) ASEAN signed previously with partner countries, harmonizing commitments and provisions. Vietnam’s economic benefits will also be maximized, especially in rules of origin and trade facilitation, while contributing to strengthening regional supply chains and economic recovery after the Covid-19 pandemic.

“The RCEP includes nearly all of Vietnam’s most important trade and investment partners,” said Ms. Nguyen Thi Thu Trang, Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s Centre for WTO and Economic Integration. The agreement is expected to help create a stable and long-term export market for ASEAN countries in general and Vietnam in particular, contributing to promoting the implementation of Vietnam’s export-oriented manufacturing policy.

The RCEP is a new-generation FTA and the largest in the world, with 15 members, including the ten ASEAN countries and China, South Korea, Japan, Australia, and New Zealand. It will therefore open up more opportunities to link Vietnam’s trade and investment with member economies, creating conditions for local businesses to participate more deeply and broadly in value chains, Ms. Trang emphasized.