Rcep

Digitalization will be a significant need for Vietnam to boost industrial competitiveness, enhance human capital, as well as keep up with regional and international standards, according to PwC Vietnam. Regional collaboration is now a necessity to make Asia-Pacific more resilient and future-ready. As one of the growing markets, Vietnam is ready to take a more active role and make a contribution to addressing the region’s fast-growing demand, according to General Director of PwC Vietnam Dinh Thi Quynh Van. Vietnamese companies will need to better prepare themselves to capitalise on RCEP's benefits. Photo: Thanh Hai. The recent signing of the Regional Comprehensive Economic Pact (RCEP), the world largest trade agreement, offers businesses in Vietnam better access to large markets and an enhanced trade environment, Ms. Van said at a launching ceremony of a new report by PwC discussing measures to ensure growth in the Asia – Pacific region on November 17. “However, Vietnamese companies will need to better prepare themselves to capitalize on the benefits this deal brings,” Mrs. Van noted. “Digitalization will be a significant need for Vietnam to boost industrial competitiveness, enhance human capital, as well as keep up with regional and international standards,” she added. PwC’s report was commissioned in view of the continuous disruption and challenges to economic growth in the Asia-Pacific region in the past few years. Trade protectionism, geopolitical tensions, changing demographics and climate change have all threatened the region's growth. The Covid-19 pandemic has exacerbated the challenges and accelerated the need to act. The report highlights the urgent need for strong leadership with a fresh vision, supported by enabling policies that facilitate government, corporate and social collaboration. “The Asia-Pacific region can no longer rely on passive growth in the hopes its fundamental growth factors such as urbanization, human …

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This assessment was shared by experts during a conference held on March 24 by the Integration Support Center and the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA). Dao Xuan Duc, HEPZA deputy head, said amid the COVID-19 impact coupled with the growing rise of protectionism globally, the trade pact can be considered to be the new growth engine for international trade. With commitments set out to open markets for goods, services, and greater investments, whilst simplifying customs procedures and establishing rules of origin to facilitate greater trade and reduce barriers, the RCEP is anticipated to constitute the world’s largest trading area. This will ultimately serve to accelerate the development of regional and global value chains, thereby promoting further economic development among ASEAN countries. Tran Ngoc Binh, head of Ho Chi Minh City’s Import and Export Management Division, said under the terms of the trade pact, several key Vietnamese exports, especially textiles and agricultural products, will be able to enjoy numerous benefits when penetrating some markets, including Japan and the Republic of Korea. Under the RCEP, Vietnam is able to import fabrics from any country, and complete Made-in-Vietnam products enjoy tax incentives when they are shipped to the Japanese market. Nguyen Anh Duong, head of the General Research Department under the Central Institute for Economic Management (CIEM), noted the signing of the RCEP indicates that member states are committed to liberalising trade in goods, services, and investment, towards achieving the ultimate goal of stronger co-operation and fairer development. Duong outlined that the RCEP bloc makes up a dynamic area featuring a newly-growing middle class, and that over the course of the next three years, the region will be home to approximately 150 million people who have a high-to-middle income. This demographic will be capable of forming new consumer trends that are in …

[Read more...] about RCEP to benefit key Vietnamese exports due to flexible rule of origin

Deputy head of the HCM City Export Processing and Industrial Zones Authority Dao Xuan Duc speaks at the event (Photo: VNA) HCM City (VNA) - The Regional Comprehensive Economic Partnership (RCEP) could bring substantial benefits to Vietnam’s exports thanks to easier rules of origin compared to other free trade agreements, mostly apparel, farm produce, and aquatic products, experts have said. During a conference held in HCM City on March 24 to popularise the RCEP, deputy head of the HCM City Export Processing and Industrial Zones Authority (Hepza) Dao Xuan Duc said that amid the COVID-19 pandemic and the emergence of protectionism, the RCEP signed between ASEAN and Japan, New Zealand, Australia, China and the Republic of Korea on November 15, 2020 is considered a new driving force for international trade. Tran Ngoc Binh, chief of the HCM City Office of Export-Import Management under the Ministry of Industry and Trade’s Department of Export and Import, said that with the RCEP, Vietnam could enjoy tax incentives when exporting to Japan after importing cloth from anywhere, then cutting and sewing to make products. Similar to aquatic products , Vietnam could import breeding varieties from other countries, raise them domestically, and then export them to enjoy preferential tariffs. Nguyen Anh 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 trade in goods and services and investment, towards fairer development. Illustrative image (Photo: VNA) RCEP member countries will have about 150 million high-income earners within the next three years, he said, who will shape new consumption trends, focusing on smart technological devices and high-quality products. He also mentioned challenges such as rising trade deficits. In the past, Vietnam only ran a deficit with China and ASEAN, but has recently done so with Australia, New …

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