Business

Exporters benefit from RCEP

SUNDAY, 04/09/2022 07:01:04

It is expected that the value of export to RCEP markets will grow with plenty of room for development.


Since the RCEP took effect, goods of Makalot Garments Vietnam Co., Ltd. in Thanh Ha district have enjoyed many incentives and competitive opportunities

The Regional Comprehensive Economic Partnership (RCEP) which officially became effective in early 2022 has created many opportunities for exporters to gradually recover production and develop after impacts of the Covid-19 pandemic.

The enforcement of the RCEP has brought great benefits to enterprises in the fields of garment, textile, light industry, and processing of vegetables, tubers, and fruits in the province.

According to data of the Department of Industry and Trade, the province’s total export turnover in the first six months of 2022 exceeded 5.1 billion USD, up 19.5% year on year. In which, exports to RCEP markets like South Korea, Japan, and China were valued at 496 million, 417 million, and 339 million USD, respectively.

It is expected that the value of export to RCEP markets will grow with plenty of room for development.

According to a representative of Makalot Garments Vietnam Co., Ltd. in Thanh Ha district, the RCEP shares a common rule of origin, thus less complicated for the business.

The company’s main markets in the past were the US and the European Union (EU), but to date, Japan and South Korea have been added to the list.

Because garment materials are mainly bought from China and partly in Vietnam, it will be easier for goods exported to RCEP countries to meet preferential conditions than before. 

Application for a RCEP certificate of origin (C/O) is basically convenient. The company has exported C/O applying orders worth over 2.7 million USD to RCEP markets.

At present, Hyundai Kefico Vietnam Co., Ltd. in the expanded Dai An industrial park is exporting products to RCEP markets, including China, South Korea, and Indonesia.

Previously, some exports to China failed to satisfy origin criteria to apply for a C/O under the ASEAN–China Free Trade Area (ACFTA), but now, the RCEP has facilitated C/O application for all products exported to the market.

This has improved the competitiveness of the firm’s goods in the potential market. Its commodities enjoy more incentives and have opportunities to compete with those of producers in the host country.

Besides the favorableness, the RCEP also poses competitive pressures. Regarding export markets in the RCEP, competition is forecasted to be more complicated since all countries have similar advantages. This requires enterprises to proactively change, innovate technology, and improve the quality of human resources to turn challenges into opportunities.

According to Tran Van Hao, Director of the Department of Industry and Trade, to help producers, importers, and exporters in the province capture information and effectively take advantage of incentives from the RCEP, the department has proactively coordinated with the Ministry of Industry and Trade’s Export-Import Agency to organize intensive training to introduce the Ministry of Industry and Trade’s Circular 05/TT-BCT on the origin of goods in the above agreement to enterprises involved in import and export in the province, thereby helping them grasp and clearly understand policies, regulations, and rules on the origin of goods in the agreement…

HUYEN TRANG

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