Together with ASEAN countries,
Vietnam absolutely has the opportunity to become a hub to attract foreign investment
in Vietnam, especially from countries participating in the Regional
Comprehensive Economic Partnership (RCEP).
Law firm in Vietnam
Finally, the RCEP was
signed after 8 years of negotiations. Although it still has to wait a while for
the 15 member countries, including 10 ASEAN member countries and 5 partners
(including China, Japan, Korea, Australia and New Zealand) to approve, the assessment
of the impact of the RCEP on the Vietnamese economy has been repeatedly
confirmed.
The rules of origin
procedures in RCEP bring significant advantages to Vietnam, whose economy is
heavily dependent on imported materials. Vietnam is having a large trade
deficit from Korea, China on raw materials for export production and it is
always difficult for the origin of goods when exporting to many major markets
around the world.
With RCEP, it is
reported that Vietnamese enterprises can more easily access raw materials from
member countries to produce export goods. For example, it is possible to import
electronic chips from Japan and Korea; imported raw materials for textile and
leather from China, then produced domestically and exported to other countries,
at the same time satisfying the rules of origin within the bloc to take advantage
of tariff preferences.
Not only with Vietnam,
experts also agreed that RCEP is a favorable opportunity for all countries to
participate in restructuring, repositioning supply chains and participating in
global value chains. With RCEP, ASEAN is hoping to become the center of the
global production chain. If we can do that, the chances for Vietnam are not
small.
Vietnam has the
opportunity to reshape and better exploit new positions, thereby building up a
position in the global supply chain map. Of course, there will be an
opportunity to attract investment. RCEP can help Vietnamese companies expand
their markets, join regional supply chains and attract foreign investment.
Among the remaining 14
RCEP member countries, most are major investment partners of Vietnam. Even in
the list of 10 countries and territories with large investment in Vietnam,
there are 6 partners from RCEP. In which, the largest is Korea (70.38 billion
USD), followed by Japan (59.89 billion USD), Singapore (55.7 billion USD),
China (18 billion USD), Malaysia (12.8 billion USD), Thailand (12.5 billion
USD).
Even without RCEP,
foreign investment capital from these countries is still pouring into Vietnam,
especially when Vietnam is the focus of attention of international investors,
when investment flows are changing during Covid-19 period.
Currently, China,
Japan, Korea and even Singapore, Thailand, Malaysia are speeding up investment
abroad to expand production and supply chains. Vietnam is a safe and attractive
destination. The opportunity to speed up investment attraction from RCEP member
countries will be greater for Vietnam, especially when Vietnam is building many
outstanding mechanisms and policies to catch the shifting investment inflows.
But with RCEP, the
story is not just the investments between RCEP members. The prosperity, large
market size of the RCEP bloc will also make it become the focus of global
investors.
When proposing to
negotiate RCEP, ASEAN countries also want to create a favorable environment to
connect economies, creating opportunities for enhancing production capacity
towards the goal of building ASEAN into a dynamic and unique economic region in
terms of production and market.
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