On November 4th, 2022, the Prime Minister issued Decision No. 01/QD-TTg ratifying the Implementation Plan of the Regional Comprehensive Economic Partnership (“RCEP”). RCEP was signed by ten (10) ASEAN members and their five (05) partner countries including China, Japan, Korea, Australia and New Zealand. This Agreement takes effect on January 1st, 2022.
The RCEP Agreement consists of twenty (20) Chapters and four (04) General Annexes, namely the Schedules of Tariff Commitments, the Schedule of Specific Commitments for Services, the Schedule of Reservations and Non-conforming Measures for Services and Investment, the Schedule of Specific Commitments on Temporary Movement of Natural Persons.
The RCEP Agreement is considered as a “new-generation” trade agreement as it not only consists of the four basic pillars of international trade including Trade in goods (Chapter 2), Trade in services (Chapter 8), Investment (Chapter 10), and Intellectual Property (Chapter 11), but also stipulates new issues such as Temporary movement of natural persons (Chapter 9), Electronic commerce (Chapter 12), Competition (Chapter 13), Small and medium enterprises (Chapter 14), Government procurement (Chapter 16).
Upon coming into force for all parties, the RCEP Agreement shall cover a market of 2.2 billion people, accounting for 30% of the world’s population, with a combined GDP of USD 26.2 trillion, equivalent to 30% of global GDP and become the largest free trade area in the world in terms of population size.
The Peterson Institute for International Economics (USA) estimates that the RCEP Agreement would lead to an increase of USD 186 billion in global national income per year by 2030 and add 0.2% to the economy of its member countries when it officially comes into effect.
The Ministry of Industry and Trade shall be responsible for implementing the RCEP Agreement in order to provide information, guidance, and clarification of commitments and other issues related to the Agreement.
Updated by LLVN
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