World’s largest trade deal RCEP will take effect soon

RCEP (Regional Comprehensive Economic Partnership), the world’s biggest trade pact including China, Korea, Australia, New Zealand, Japan, and other 10 countries in the Southeast Asia region Vietnam, Myanmar, Cambodia, Laos, Singapore, Thailand, Indonesia, Philippines, Brunei, Malaysia, will take effect on January 1, 2022. This FTA is expected to remove tariffs on around 90 percent of goods, and standardize rules on investment, intellectual property, and e-commerce among other trade practices. Though India doesn’t join RCEP as the original expectation, the trade deal still covers a huge market of more than 2.2 billion people expected to be nearly one-third of the world’s population. In the setting of post-Covid, RCEP will be a drive for the resume and development among evolved countries. The supplies chain will be improved better and more stable. Import and export procedures are less troublesome. Vietnam, one of the six countries that ratify the deal, has preparation to utilize the RCEP agreement. Vietnam has signed many agreements before like CPTPP and EVFTA. Therefore, Vietnam has the experience to face the challenges as well as the opportunities that this FTA brings. With the release of tariffs, it is easier for Vietnamese enterprises to assess the better source of materials that can be made for export products. Some of the industries that are going to see the potential of export are electronic components, textile, food as the supply chain is more stable. However, some local enterprises also meet severe competition for products like household appliances, electronic products from China, or some agricultural products from countries that are using modern and advanced technology in agriculture. If you need to look for some companies or factories in Vietnam to cooperate,  feel free to contact us or send us email to [email protected]