Published 17 Apr.2022 12:07(KST)
[Asia Economy Reporter Kim Jin-ho] KOTRA and the Korea International Trade Association announced that they will hold an online seminar on the "Korea-Vietnam Mega FTA Export-Import Strategy in the RCEP Era" on the 20th of this month.
This seminar is being held to introduce the Regional Comprehensive Economic Partnership (RCEP), which came into effect on February 1st, and to support the establishment of production strategies for our export companies suitable for the mega FTA era.
The seminar is jointly hosted by the KOTRA Hanoi Trade Center FTA Overseas Utilization Support Center and the Korea International Trade Association Gyeonggi Regional Headquarters. The main topics include ▲ Key provisions of the RCEP agreement ▲ Practical procedures for utilizing RCEP in Korea and Vietnam ▲ RCEP utilization strategies ▲ Vietnamese commercial culture that companies should know ▲ Vietnamese import product certification and regulatory systems. Core information necessary for our companies to utilize RCEP in Vietnam has been selected.
The enforcement of RCEP is expected to act as an opportunity for our export companies. According to the Korea Institute for International Economic Policy, there are a total of 15 participating countries in RCEP. The trade volume reaches a total of $5.6 trillion, which accounts for 31.9% of global trade volume.
In particular, in the Vietnam market, which newly emerged as one of Korea's top three trading partners in January and February this year, RCEP can be applied more effectively. First, the industries utilizing the FTA with Vietnam are expected to expand. The benefits of RCEP are anticipated to be more broadly applied across various industries, including various consumer goods as well as the electrical and electronics sectors.
It also helps our companies' investment expansion. As of the cumulative total in 2021, Korea is Vietnam's number one investor country. The scale of Korean investment in Vietnam is $74.66 billion across 9,223 projects, with particularly active entry in the manufacturing and processing industries.
The enforcement of RCEP is expected to lead to the reorganization of the production division system across Asia and Oceania by applying the "single origin rule." If the origin standards, which differed by agreement, are unified among member countries, companies' FTA utilization costs will decrease.
Lee Jong-seop, head of KOTRA's Southeast Asia and Oceania Regional Headquarters, stated, "Through the enforcement of RCEP, the entire process from raw material procurement, production, sales, to consumption will take place within the region, creating a new trade environment," and added, "It is necessary to preemptively respond to the changing trade environment by securing strategic areas such as Vietnam."
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