HCMCity (VNA) - The Regional Comprehensive Economic Partneꦿrship (RCEP)could bring substantial benefits to Vietnam’s exports thanks to easier rules oforigin compared to other free trade agreements, mostly apparel, farm produce,and aquatic products, experts have said.

During aconference held in HCM City on March 24 to popularise the RCEP, deputy head of the HCM City Export Processing and Industrial ZonesAuthority (Hepza) Dao Xuan Duc said that amid the COVID-19 pandemic and the emergenceof protectionism, the RCEP signed between ASEAN and Japan, New Zealand,Australia, China and the Republic of Korea on November 15, 2020 is considered anew driving force for international trade.

Withcommitments to opening markets to goods, services, and investment, simplifyingcustoms procedures, and establishing rules of origin to facilitate trade andreduce trade barriers, the deal is expected to create the world’s largest tradearea and p𝐆romote the development of value chains in the region and theౠ world,thereby propelling the economic growth of ASEAN member states, includingVietnam and partners.

TranNgoc Binh, chief of the HCM City Office of Export-Import Management under theMinistry of Industry and Trade’s Department of Export and Import, said that withthe RCEP, Vietnam could enjoy tax incentives when exporting to Japan afterimporting cloth from anywhere, then cutting and sewing to make products. Similarto aquatic products, Vietnam could import breeding varieties from other countries, raise them domestically, and then export them toenjoy preferential tariffs. NguyenAnh Duong from the Central Institute of Economic Management said that with signing of the RCEP shows that member states look toward the commitment to further liberalising tradein goods and services and investment, towards fairer development. RCEP member countries will have about 150 million high-income earners withinthe next three years, he said, who will shape new consumption trends, focusingon smart technological devices and high-quality products. He alsomentioned challenges such as rising trade deficits. In the past, Vietnam onlyran a deficit with China and ASEAN, but has recently done so with Australia,New Zealand, and Japan, resulting in the risk of facing trade defence lawsuitsif imported materials for production and export are not brought under control. Expertssuggested Vietnamese firms devise their own plans to improve export capabilities,meet technical requirements, and regularly update trends regarding non-tariffmeasures to optimise benefits brought about by FTAs./.