RCEP Market

Challenges from RCEP for Viet Nam’s exports to the Philippines market

Increasing competitive pressure from other RCEP members

In addition to the expected opportunities, RCEP also poses certain challenges for Viet Nam, particularly in terms of competitive pressure in the Philippine market. This is because RCEP provides all member countries - not only Viet Nam - with opportunities to access the Philippine market under preferential tariff rates and harmonized rules of origin. As a result, Vietnamese exports in the Philippine market will face stronger competition from many regional competitors, especially countries whose export structures are similar and directly competitive with Viet Nam, such as China and several ASEAN countries.

Other recurring challenges

Apart from challenges directly associated with RCEP, Vietnamese exports to the Philippines also face a number of ongoing structural challenges, particularly in relation to non-tariff measures (NTMs).

Non-tariff measures refer to policy instruments other than tariffs that countries apply to goods crossing their borders. In principle, these measures are used to achieve legitimate regulatory objectives, such as protecting human health, food safety, and the environment. However, in some cases, NTMs may be overused or misapplied as a means of restricting imports.

The NTMs applied by the Philippines to imported goods in general (not specifically targeting Vietnamese goods) are not directly related to RCEP. Nevertheless, the reduction of tariffs and more flexible rules of origin under RCEP may indirectly act as a catalyst for the increased use of NTMs, which could impose stricter requirements and compliance standards on Vietnamese exports entering the Philippine market.

Source: Center for WTO and International Trade - VCCI

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