Vietnam to mark first anniversary of joining Regional Comprehensive Economic Partnership
Vietnam will acknowledge the first anniversary of signing the Regional Comprehensive Economic Partnership (RCEP) today.
RCEP is the world’s largest trade agreement; it officially goes into effect this January. The 15-country agreement eliminates 92% of tariffs and removes red tape surrounding trade between member nations, and is projected to grow the global economy by $186 billion.
Vietnam stands to gain at least 0.5% in GDP directly from this partnership, which it officially ratified in October. Experts believe an increase in exports, technological advancement and the creation of an advantageous market for foreign investors will be the largest benefits for Vietnam.
With the country already achieving impressive economic gains in the past few years, RCEP stands as a springboard to add even more to the Vietnamese GDP as we approach 2022. Expect to see sharp gains in Vietnam’s export market and a boost in foreign direct investment. The economic growth will also increase Vietnam’s influence within ASEAN as it becomes a large player in the Southeast Asia bloc. However, RCEP brings Vietnam—a nation that traditionally hedges between the US and China—much closer to China, so expect to see overt American diplomatic efforts to bolster their relationship.
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