Asean japan

According to statistics released by the General Department of Vietnam Customs, China represents the largest market among the 14 RCEP countries that the nation has established trade ties with. Indeed, turnover between the two sides reached US$103.5 billion during the first 10 months of the year.

Of the figure, the value of Vietnamese export commodities stood at US$37.9 billion, while the nation’s imports came to US$65.6 billion.

Furthermore, two-way trade turnover with the RoK hit US$53.5 billion, including US$16 billion from Vietnamese exports and US$37.5 billion from its imports.

Indeed, import and export trade turnover was recorded at more than US$32 billion with Japan, ASEAN at US$43.4 billion,  Australia at US$6.77 billion and New Zealand at US$870 million.

This comes following the RCEP being signed on November 14 by leaders of 15 countries from the Asia-Pacific region that make up 29% of global GDP. The pact was signed online by leaders of 10 ASEAN member states, along with Australia, China, Japan, New Zealand, and the Republic of Korea (RoK) as part of the 37th ASEAN Summit, chaired by the nation in Hanoi.

The purpose of the RCEP is to help establish long-term stable export markets for ASEAN members in the context of risky and uncertain global supply chains. In addition, it will also create a legally binding regional framework suitable for trade policy, investment, intellectual property, e-commerce, and dispute resolution, among other things. Overall, the international partnership aims to create a fair trading environment throughout the region.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, emphasised that the RCEP is anticipated to facilitate greater penetration for local agricultural products, such as durians and passion fruit, into the Chinese market due to the northern neighbour currently only importing nine types of farm produce from the country.

Le Thi Nguyen Thuy, deputy director of MINA Import and Export Joint Stock Company, pointed out that the RCEP will serve to create greater opportunities for the company as it strives to expand its market share in places such as China, along with other ASEAN members.

Thuy duly noted that with the firm’s agricultural products penetrating into various demanding markets, it will make it easier for them to meet the necessary requirements relating to product quality when exporting to other countries through the trade deal.

Furthermore, the trade deal will help organic products from Vinamit to gain entry to fastidious markets such as Japan and the Republic of Korea in line with the tariff reduction roadmap, according to Vu Quoc Anh Thu, marketing director of Vinamit Joint Stock Company.

Whilst also enjoying a number of advantages, the RCEP is anticipated to increase the influx of foreign goods into the nation whilst creating fierce competition in terms of the price in the domestic market. This will therefore encourage local enterprises to devise suitable price strategies in an effort to compete with foreign rivals, noted Thu.

Despite numerous challenges, such as congestion of goods at border gates due to the novel coronavirus (COVID-19) pandemic early this year, the agricultural sector raked in approximately US$3.3 billion, said the general secretary of the Vietnam Fruit and Vegetable Association, adding that with the benefits brought about by the RCEP, the association is poised to gross an export turnover of US$4 billion next year.