Thứ ba, ngày 22 tháng 1 năm 2019

RCEP: Opportunity for Viet Nam after TPP

The result of the US presidential election has created a major surprise for the world, creating a significant obstacle to the establishment of the Trans Pacific Free Trade Agreement (TPP) by the elected president Donald Trump, who officially signed to withdraw from TPP on January 23, 2017. Viet Nam is the country expected to benefit the most from joining the TPP, becoming the most affected country when this Treaty is not signed. This can be seen as the United States has always been the largest importer of Viet Nam. However, besides TPP, Viet Nam is actively negotiating other free trade agreements, including the Regional Comprehensive Economic Co-operation Agreement (RCEP), which is a treaty with the participation of a number of countries that are joining TPP. RCEP covers an area with a total population of 3.4 billion people with a combined GDP of $ 22.4 trillion. Although the size and impact of the RCEP are smaller than that of the TPP, Viet Nam will probably continue to benefit from the RCEP. The value of RCEP is demonstrated in three main aspects. Firstly, the RCEP will remove tariff barriers up to 90-95% of total tariff lines. This has been practically applied within ASEAN + 1. Secondly, the terms which are positive makes RCEP meaningful to all member states, regardless of whether they are large or small. Thirdly, promoting the establishment of RCEP will serve positively for the regional integration process. RCEP will bring new opportunities for Viet Nam. Viet Nam will have easier access to investment and export markets of ASEAN and its partners, diversified demand for goods and services. RCEP also creates the opportunity for importing cheaper goods, especially raw materials for production. Vietnamese businesses will participate in the regional value chain and production network, strengthen technical cooperation and position in dispute resolution, while benefiting from cutting transaction fee and business environment becomes more friendly by harmonizing existing regulations and applying them in various ASEAN FTAs.

Keywords: RCEP, TPP, Viet Nam.

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