RCEP creates a large market with 2.2 billion consumers - 30% of the world’s population and 30% of global GDP, a market that will likely be the world’s largest free trade area.

Soon after RCEP takes effect, members will begin to honor their commitments on tariffs. Vietnam and its partners will remove tariffs on at least 64% of tariff lines. After 15 to 20 years, Vietnam will have removed 89.6% of tariff lines for partner countries which, in return, will have removed up to 92% of tariff lines for Vietnam. Other ASEAN members will remove at least 86% of all tariffs for Vietnam.

To optimize the benefits of RCEP, Vietnamese businesses have thoroughly studied the agreement.

Nguyen Cam Trang, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said: 'The opportunities that RCEP brings come from its origin rules. Because Vietnam is already using materials imported from other RCEP members, it will be easier for Vietnamese products to meet the origin criteria set out in the agreement and for Vietnamese businesses to benefit from the preferential tariffs.'

So far, 2 ASEAN countries and 2 partner countries have ratified RCEP. The other signatories are expected to ratify the agreement by early 2022. Vietnam has finalized a government action program on RCEP implementation. The Ministry of Industry and Trade has organized seminars to familiarize businesses with the agreement. The Vietnam Chamber of Commerce and Industry and the Business Association have posted the agreement on their websites and portals.

Nguyen Thi Quynh Nga, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, said businesses should pay more attention to potential negative impacts of the agreement such as increased competition in the domestic market

'There are both opportunities and challenges. Without seizing the opportunities, businesses will be under the pressure of competition at home when other RCEP countries start taking advantage of the agreement, they will increase exports to Vietnam,' according to Ms Nga.

Taking advantage of commitments to open the market in goods, services, and investment will help Vietnamese businesses develop new supply chains and make Vietnam a reliable destination for foreign investors.