RCEP brings great business opportunities for regional companies: experts | Business

RCEP brings great business opportunities for regional companies: experts hinh anh 1Illustrative picture (Source: VNA)

Hanoi (VNA) – The Regional Comprehensive Economic Partnership (RCEP), which entered into force a year ago, has brought great business opportunities for companies in the region, according to experts.

Immediately after the agreement entered into force, trade among the countries of the region is on the rise. Data from
ChinaThe State Customs Administration has shown that in the first 11 months of 2022, revenues from imports and exports between the country and RCEP members rose 7.9% year-on-year to CNY 11.8 trillion (US$1.74 trillion), accounting for 30% of the country’s total.

Of the total trade between China and ASEANcountries reached nearly CNY 5.9 trillion (USD 872.65 billion), an increase of 15.5% year-on-year.

According to experts, the biggest benefit from the deal is preferential tax rates, with zero duty applied to more than 90% of goods traded by its members.

A recent survey by HSBC found that more than 93% of RCEP member companies surveyed said they plan to increase transactions with China, and more than 30% said they expect at least a 30% increase in business in China this year.

It is predicted that in 2023, RCEP member countries will recover faster, especially in tourism and real estate. Thanks to RCEP, members will have more opportunities to strengthen tourism cooperation, thus promoting the growth of other sectors.

At the same time, the agreement is expected to create development opportunities for developing economies in the region, including those in ASEAN.

The member’s cooperation with third parties has also contributed to the growth of multilateralism, globalization and regional cooperation, and to the creation of a solid foundation for the acceleration of negotiations on a free trade agreement between China, Japan and the Republic of Korea.

RCEP has helped shift the focus of economic and trade cooperation from China to ASEAN and shift the concentration of China’s economic and trade partnership to ASEAN, according to experts.

The RCEP was signed in 2020 between the Association of Southeast Asian Nations (ASEAN) and five partners, namely Australia, New Zealand, China, Japan and the Republic of Korea. Entering into force on January 1, 2022, it is currently the largest FTA covering 30% of global GDP.

According to this agreement, about 90% of tariff lines will be abolished within 20 years from its entry into force./.

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