Hanoi (VNS/VNA) -The Regional Comprehensive Economic Partnership (RCEP) would not worsen thetrade deficit Vietnam was running with signatory markets, according to theMinistry of Industry and Trade.

Statistics showed that Vietnamran a trade deficit worth 5.58 billion USD with ASEAN, 27.71 billion USD withChina and 21.37 billion USD with the Republic of Korea in the first nine monthsof this year, which triggered concerns the deal might widen the country’strade deficit figures.

The ministry said that Vietnamalready participated in ASEAN Trade in Goods Agreement (ATIGA) and free tradeagreements (FTAs) between ASEAN and other partner countries, meaning that tradeliberalisation had already been implemented over the past two decades.

RCEP was basically an agreementwhich unified pre-existing bilateral agreements between ASEAN and five of itsmajor trade partners, which would not create any shocks on tariffliberalisation to Vietnam, the ministry said, adding that RCEP mainly aimed tocreate favourable conditions for business operation and investment.

Hence, the trade deal would notweigh on the trade deficit. In the long term, Vietnam’s trade would evenimprove, according to the ministry.

The trade deficit was not theonly factor to consider about an FTA, the ministry said. More importantly, FTAswould help enhance cooperation between economies, attract foreign investmentand bring other values to the economy and citizens.

Looking at the time when Vietnamjoined the World Trade Organisation, the country ran a considerable tradedeficit but this was an opportunity to improve the competitiveness of theeconomy and enterprises.

Nguyen Thi Quynh Nga, DeputyDirector of the ministry’s Multilateral Trade Policy Department, urgedVietnamese firms to study the trade deal carefully to be able to grasp theopportunities arising from the trade deal and overcome challenges from theintensifying competition pressure on the domestic market.  

RCEP was signed last Sundaybetween 15 Asian countries, excluding India, after eight years of negotiations.

The ministry said that RCEPwould come into force when at least six ASEAN countries and three partnercountries approved the trade deal.

Minister of Industry and TradeTran Tuan Anh said that RCEP provided a perfect opportunity for Vietnam andother ASEAN countries to become a centre of investment attraction.

RCEP creates the largest freetrade-economic region in the world, accounting for 30 percent of global GDP with2.2 billion consumers./.