A farmer works at his dragon fruit farm in Thoi Lai district, Can Tho province, Vietnam, Jan. 26, 2022. (VNA/Handout via Xinhua)
Vietnamese companies are further exploiting the opportunities of RCEP and the strong Chinese market. They are convinced that the free trade agreement will create more trade and investment opportunities.
HANOI, March 27 (Xinhua) — Nearly three months after the Regional Comprehensive Economic Partnership (RCEP) came into force, many Vietnamese companies said they had benefited from the world‘s largest trade deal involving the gigantic Chinese market.
“Since RCEP came into force on January 1, Vietnamese exporters like our company have enjoyed several benefits,” Ta Ngoc Hung, managing director (CEO) of Vietnamese agricultural manufacturer and exporter Vinapro, told Xinhua recently.
First, export procedures to RCEP members have been simplified. For example, exporters now only need to complete the electronic Certificate of Origin (CO) instead of a paper copy as before.
“It’s very convenient for exporters and buyers as CO procedures used to take time,” the businessman said, adding that Vietnamese companies can take full advantage of e-commerce to reach RCEP countries. .
Workers process fish for export at a factory in An Giang province, Vietnam, March 14, 2022. (VNA/Handout via Xinhua)
Second, alongside favorable tariffs for exporters, buyers or importers can now benefit from more incentives under the agreement. This reduces the selling prices of the products, which means that products from countries like Vietnam become cheaper for Chinese customers directly in China.
“Also, with awareness of RCEP, local customers tend to try it, or even prioritize products from countries that are members of the agreement, so this means better market access for companies like ours. “, said Hung.
To seize various RCEP opportunities, Vinapro further encourages the export of items such as cashew nuts, pepper and cinnamon to China, a giant market with over 1.4 billion consumers, especially through official channels. .
At the same time, Vinapro is strengthening its participation in trade shows in China and South Korea, he said, noting that it has registered for the China International Import Expo (CIIE) and the China-ASEAN Expo. (CAEXPO) in 2022 and awaits an update from Vietnam Trade Promotion Agency.
File photo taken on December 14, 2021 shows vehicles waiting to pass through the port of Mong Cai international border gate at the China-Vietnam border in Mong Cai town, Quang Ninh province, Vietnam. (VNA/Handout via Xinhua)
According to an official from the Vietnam Trade Promotion Agency, which facilitates the participation of Vietnamese companies in the upcoming CAEXPO, local companies want to further exploit China’s strong and resilient economy. The giant economy has played an active role in stabilizing regional and global industrial and supply chains and promoting global economic recovery amid the COVID-19 pandemic, the official said.
Like Vinapro, many other Vietnamese companies, including Luong Gia Food Technology Corporation in Ho Chi Minh City, Rang Dong Agricultural Product Import-Export Company in the southern province of Long An and Viet Hieu Nghia Company in Ho Chi Minh City, operate more opportunities from RCEP and in the Chinese market, their directors told Xinhua recently.
“Our dried fruit products, now under the Ohla brand, are selling well in China, although this huge market with over 1.4 billion consumers seems to prefer fresh fruit,” said Luong Thanh Thuy, general manager of Luong Gia Food Technology Corporation.
Assuming that Chinese consumers prefer fresh fruits, Rang Dong Agricultural Product Import-Export Company hopes to export more fresh and processed dragon fruits to China, especially after RCEP comes into effect. The company’s fruit export to the Chinese market has been going well in recent years, with its export turnover increasing by an average of 30% annually.
People work at an orchid garden in Binh Chanh district, Ho Chi Minh City, Vietnam, March 16, 2022. (VNA/Handout via Xinhua)
“As far as I know, Vietnam’s Ministry of Agriculture and Rural Development is finalizing a draft plan on developing local fruit and vegetable processing industry to bring Vietnam into the top five countries. world in this field. More Chinese people will enjoy not only Vietnamese fresh dragon fruit but also various Vietnamese fruit products such as cakes, juices and wine,” said Nguyen Tat Quyen, director of the company. import-export of agricultural products from Rang Dong.
According to Quyen, besides gigantic size, the Chinese market has another big advantage, being close to Vietnam and convenient for road, sea and air transportation. Due to the impact of the COVID-19 pandemic, the cost of transporting Vietnamese goods, including fruits, to China has recently increased by only 0.3 times, compared to 10 times to Europe and 13 times to the United States, he said.
Quyen’s remarks were echoed by Vo The Trang, director of the Viet Hieu Nghia company, whose strength is the exploitation and processing of seafood products.
Farmers harvest rice at the paddy field in Vi Thuy district, Hau Giang province, Mekong Delta, Vietnam, March 25, 2022. (VNA/Handout via Xinhua)
“China is a strong market that consumes a huge volume of various seafood including tuna. Vietnam is China’s 10th largest tuna supplier and we are proud to always be in Vietnam’s Top 3 among two dozen local tuna exporters who sell the fish to the huge market,” Trang said.
Vietnamese entrepreneurs expressed their belief that RCEP will create more trade and investment opportunities for companies inside and outside RCEP countries. ■