VIETNAM, February 17 –
A production line for clothing and textiles for export. The RCEP gives Việt Nam the opportunity to increase its exports to its partners. — Photo VNA/VNS
HÀ NỘI — Việt Nam is likely to be one of the main beneficiaries of the Regional Comprehensive Economic Partnership (RCEP) in terms of tariff cuts and foreign direct investment, Singapore’s leading consumer bank, DBS, said. in a recent report.
According to the report, the average of Việt Nam’s effectively applied tariffs on intra-RCEP trade is in the middle of the pack at 1.2%, lower than that of the Republic of Korea, at 4.8%, or China. , at 2.8%. He noted that Việt Nam was among the ASEAN economies likely to benefit somewhat from the tariff reduction, given its high trade openness.
Meanwhile, the report pointed out that trade integration between Việt Nam and RCEP members is already high and is expected to grow as companies take advantage of RCEP’s benefits. Việt Nam routinely imported a significant amount of goods from RCEP partners.
The report also notes that RCEP gives Việt Nam the opportunity to increase exports to its partners. Furthermore, the pact also brings benefits to Việt Nam by increasing foreign direct investment (FDI). He said, “Even though Singapore continues to receive the lion’s share of FDI inflows, inflows to Việt Nam have tended to increase and have ranked among the top three recipients within ASEAN-6.”
Việt Nam continues to avail itself of multiple assets to attract foreign investors, according to the report.
Signed in November 2020 and taking effect on January 1, 2022, RCEP brings together 10 ASEAN member states, as well as China, Japan, the Republic of Korea, Australia and New Zealand, covering 30% of product world gross domestic (GDP). worth US$26.2 trillion.
It forms a market of 2.2 billion consumers and becomes the largest free trade zone in the world in terms of population. It will eventually eliminate tariffs on 92% of goods traded between its signatories, expand market access for investment, harmonize rules and regulations, and strengthen supply chains within the vast free trade area. . —VNS
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