Vietnam would gain substantially from the Regional Comprehensive Economic Partnership (RCEP) Agreement, which is still under negotiation and expected to be finalized by the year-end, a workshop heard in Ho Chi Minh City on July 10.
The country would enjoy more benefits than losses, said Vo Tri Thanh, Deputy Director of the Central Institute for Economic Management (CIEM), noting that the level of benefits also depended on commitments under the agreement.
He proposed businesses to update about FTAs so as to capitalize on new opportunities and prepare to cope with challenges.
They should also understand the mechanisms for solving trade disputes to protect their legitimate interests, raise competitiveness of their products and be more active in taking part in the region’s value chain, he suggested.
Dinh Thu Hang from the CIEM said like other FTAs, the RCEP would open new opportunities for Vietnam to expand export markets via tariff reductions, and import input materials, machinery and equipment at lower costs.
Vietnamese firms would be able to participate in the region’s value and production chains and exchange technical expertise with other countries, she added.
However, she said that competitive pressure from other countries with similar export structures would pose challenges to Vietnamese businesses as Vietnam still mainly exports raw materials at a low processing rate.-