Tra fish processed for export. The Regional Comprehensive Economic Partnership is bringing big opportunities for Vietnam to increase exports and participate in the regional value chain. (Photo: VNA) Nguyen Anh Duongfrom the Central Institute for Economic Management (CIEM) spoke at a conferenceabout the world’s largest trade deal on April 19, saying that enterprises needed astrategy to improve their export capacity not only in terms of price but alsoin quality to meet new requirements in RCEP markets.
“MostVietnamese enterprises do not have a habit of making preparations forfuture policy changes,” Duong said, adding only when the regulations were inforce, would enterprises find a way to meet them.
“The story isnot simply producing and selling what we have but to develop business plansbased on the understanding of the market, regulations and tastes,” he said.
Duong said theGovernment should also increase support for enterprises in some aspects thatthey are unable to do on their own.
For example,in 2012-2013, Vietnam was among the first economies to receive fruitpreservation technology transfer from Japan, which paved the way for Vietnamesefruits to enter the Japanese market. It was clear that the Government-levelexchange to establish trust between the two sides was important to achieve thissuccess, he added.
RCEP was notonly a trade and investment agreement but also a bridge to link Vietnam withthe regional production network and supply chain, Duong said.
RCEP opened anew chapter in the cooperation of Vietnam with the region, which would helpincrease exports, and increase revenue for the economy with the reduction oftariff and non-tariff barriers to facilitate trade.
In the contextthat Asia was recovering quite quickly after the COVID-19 pandemic, RCEP wouldhelp Vietnam to reduce the risk of “getting out of tune” with the economic recoveryprocess.
Nguyen Thi ThuTrang, Director of the WTO and Integration Centre under the Vietnam Chamber ofCommerce and Industry (VCCI), said that in the long-term, RCEP would establisha new supply chain in the region and Vietnam would become an important link,which would bring large opportunities for export expansion.
In addition,when the supply chain was established, there would be less risk for theimpositions of trade defence measures, she said.
RCEP, a megatrade deal among 15 Asia-Pacific countries, took effect at the beginning ofthis year and was paving the way for the creation of the world’s largest freetrade area with a market altogether accounting for 30 percent of the world’spopulation and nearly 30 percent of global GDP.
Currently, 64 percentof tariff lines have been removed, which would be increased to at least 90 percentin the next 15-20 years.
The longroadmap for tariff liberation would give time for enterprises to makepreparations and take opportunities arising from the trade deal, Trangsaid.
A recentreport by the World Bank revealed that Vietnam was forecast to enjoy thehighest trade and income gains among members of RCEP.
The averagetrade-weighted tariff imposed by Vietnam declined from 0.8 percent to 0.2 percentwhile the tariffs faced by the country were reduced from 0.6 percent to 0.1 percentbetween 2000 and 2035.
In the mostoptimistic scenario, where all benefits were applied, Vietnam had the highestgains of all RCEP member countries, newswire Vietnam Briefing cited thereport as saying. Vietnam’s income levels increased by 4.9 percentrelative to the baseline, higher than other countries, where the income levelincreased by 2.5 percent.
Trade alsoincreased the most in this scenario, with exports expanding by 11.4 percent andimports by 9.2 percent, relative to the baseline.
All RCEPmember countries would see increases in exports and imports. Vietnam’s exportswere expected to expand by 11.4 percent and imports by 9.2 percent.
According tothe WB’s report, RCEP also provides an opportunity to promote growthand support recovery after the COVID-19 pandemic.
TheWB report said that the simplification of procedures such as customsand rules of origin would help reduce bureaucracy, allowing more small andmedium enterprises (SMEs) to participate. These enterprises account for 98 percentof the total number of enterprises in Vietnam, contributing 40 percent of GDP.Thus, RCEP would offer a chance for Vietnamese SMEs to enhance the value chain.
Vietnam's economicgrowth will come from a deeper and more inclusive commitment through RCEPintra-regional trade, common rules of origin and greater openness to goods andservices in accessing markets, especially the Chinese market, it said./.
VNA
