RCEP injects new impetus to ASEAN export growth
International Business News – According to Vietnam News Agency reported on June 24, 2022, the Regional Comprehensive Economic Partnership (RCEP) has officially entered into force at the beginning of 2022. RCEP is dedicated to promoting trade and investment cooperation among ASEAN, China, Japan, Australia, New Zealand and The Republic of Korea, and is expected to become a new driving force for Vietnam’s economic and enterprise recovery after the epidemic.
RCEP is the world’s largest free trade agreement, with a market of nearly 30% of the world’s population (about 2.2 billion people) and nearly 30% of global GDP (about $26.2 trillion). The implementation of the agreement will further boost regional trade and investment cooperation, accelerate the process of regional and even global economic integration, and create a long-term stable export market for ASEAN countries, especially Vietnam. In addition, it will help optimize the allocation of resources in the region and promote trade facilitation , and investment liberalization, increasing the level of economic integration, and driving economic recovery and long-term prosperity in the region.
As one of the RCEP member countries, the Vietnamese market has huge investment attraction, and there will be more opportunities to accelerate the investment of RCEP member countries. In addition, the effective implementation of RCEP has also established a binding legal framework for the region in the fields of trade, investment, intellectual property, and e-commerce, creating a more level playing field. Due to the unification of the rules of origin in the RCEP region, Vietnam’s export trade of goods can enjoy more preferential tariffs, which is conducive to further expansion of exports to Japan, South Korea, Australia, New Zealand and other markets.
According to the forecast of the Peterson Institute for International Economics in the United States, by 2030, RCEP is expected to bring a net increase in exports of $519 billion and a net increase in national income of $186 billion for member countries.