Vietnam’s Trade With RCEP Countries

Abstract

Using data from 2013 to 2021, this study assesses Vietnam’s trade with Regional Comprehensive Economic Partnership (RCEP) countries. Although this market has a high trade turnover and accounts for a significant proportion of Vietnam’s total trade with the rest of the world, the results show that Vietnam overall has a trade deficit with RCEP countries. Vietnam’s trade with RCEP countries is negatively affected by two factors: (1) Foreign Direct Investment (FDI) in Vietnam and (2) the distance between countries. In contrast, the Gross Domestic Product (GDP) and trade openness of RCEP member countries has positive effects on Vietnam’s trade with RCEP countries. This leads to some recommendations, if the Government of Vietnam will implement them, to address Vietnam’s trade with RCEP countries, including: (1) policies to promote successful joint ventures between Vietnamese enterprises and FDI enterprises; and (2) plans to focus on boosting exports to major markets such as Australia, Japan, Korea, and New Zealand in the RCEP. Trade, RCEP, Vietnam. Panel data model, import, export, FDI, GDP, OPEN, FTA