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The signing of Regional Comprehensive Economic Partnership Agreement (RCEP) with the aim of liberalizing trade and investment and strengthening economic cooperation between Asia-Pacific economies is of particular interest to the business community. This is a large import and export market of many enterprises, many potential export industries.

Enterprises need to master science and technology to increase competitiveness. In photo: Production line at Minh Long Ceramics 1 Company.

Expectations

According to Ministry of Industry and Trade, the RCEP, implemented by 15 members, will create a large market with 2.2 billion consumers, accounting for about 30% of the world's population, 30% of global GDP, and will become the largest free trade area in the world. Currently, markets in RCEP are covering almost the entire production chain of many Vietnamese competitive products, such as: electronic products, textiles, footwear, processed foods... This is an opportunity for Vietnam in general and Binh Duong enterprises to expand their markets.

With commitments on market opening in fields of goods, services and investment, simplifying customs procedures, rules of origin that facilitate trade, minimizing barriers, RCEP agreement is expected to strongly stimulate the region and global development of value chains. In particular, the RCEP has chapters dedicated to SMEs, e-commerce, and dispute resolution when it comes to broad processes for economic and technical cooperation between countries for common prosperity.

Tran Ngoc Liem, Deputy Director of Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City, said that RCEP would create a huge, stable and favorable market for participating countries. To strongly promote the regional and global value chain, help the economy of Vietnam and ASEAN countries develop faster, create favorable conditions for enterprises to expand their markets, improve import and export turnover and attract investment...

To proactively welcome

According to Pham Van Xo, Chairman of Binh Duong Import and Export Association, what businesses are interested in is tax reduction, simpler customs procedures, easier to expand the consumption market in countries participating in the agreement. "We will actively grasp new trends of the digital economy to organize online connections between importers, distributors and domestic manufacturers, strengthening the provision of information about the market and industries", said Mr. Pham. What concerns enterprises is about the rules of origin, raw materials in RCEP are considered as in the bloc and enjoy tariff incentives when exporting to member countries; or only ASEAN countries are counted as in the bloc as before.

Nguyen Lam Vien, Chairman of Vinamit Joint Stock Company, said that in theory, as the market was expanded, opportunities for enterprises would also increase, especially in the export of goods and trade exchange. But to exploit all the advantages is not easy, especially in thin capital conditions, limited competitiveness. In the near future, goods of the same type from other countries will also be imported into Vietnam on the same principle. In order for Vietnamese enterprises to boost exports to RCEP countries is a problem. It is really necessary to have State support as a foundation in first steps. According to Mr. Nguyen, if compared to the lending interest rate 0% offered to enterprises in developed countries such as Japan and Korea, the cost of capital that Vietnamese enterprises are borrowing is now too high, with 8-10% per year, so it is difficult to compete.

The textile and garment industry expects this agreement would create an open market with over 2 billion people, a motivation for the development of textile technology, restructure textiles of countries in the region into Vietnamese market. This helps Vietnam solve the challenge of supply shortages in textile materials in recent time.

 Reported by Tieu My - Translated by Ngoc Huynh