How to leverage RCEP to strengthen Vietnam’s exports to Thailand
Solutions for taking advantage of opportunities from RCEP’s specific commitments
The market access commitments under RCEP create many opportunities for Vietnamese exporters to the Thai market. Therefore, enterprises need to understand the relevant provisions of RCEP in order to maximize the benefits of the Agreement:
Review Thailand’s tariff commitments for Vietnam in the Common Tariff Schedule set out in Annex I of the RCEP Agreement.
However, it should be noted that Thailand’s preferential tariff commitments under the RCEP Schedule represent the minimum level of market opening. In practice, Thailand may liberalize earlier than the committed schedule by reducing or eliminating tariffs ahead of time. Therefore, to determine the exact preferential tariff rate that Thailand applies to each Vietnamese product, enterprises should check the annual RCEP preferential tariff schedule applied by Thailand to Vietnam. Tariffs may be consulted on the website of the Thai Customs Department at the following address:
http://itd.customs.go.th/igtf/en/main_frame.jsp
Study the rules of origin and origin certification procedures in order to qualify for RCEP tariff preferences under Chapter 3 – Rules of Origin of the Agreement. In addition, Vietnam has incorporated the RCEP rules of origin into domestic law through Circular No. 05/2022/TT-BCT dated February 18, 2022 (as amended and supplemented by Circular No. 32/2022/TT-BCT), which provides the rules of origin for goods under RCEP.
Enterprises should carefully study this information and related guiding documents in order to fully comply with the rules of origin and certification procedures required to enjoy RCEP tariff preferences when exporting to Thailand.
Examine other relevant issues such as Customs Procedures and Trade Facilitation (Chapter 4), Sanitary and Phytosanitary Measures (Chapter 5), Standards, Technical Regulations and Conformity Assessment Procedures (Chapter 6), and Trade Remedies (Chapter 7) in order to both ensure compliance with RCEP requirements and make use of their rights while protecting their legitimate interests.
Technical and market-related solutions
To export to the Thai market, Vietnamese products must deal with many issues that RCEP does not substantially address or alter, especially:
- Thailand’s import requirements and regulations, such as food safety and hygiene standards, labeling and packaging requirements, etc.;
- The needs and preferences of Thai consumers;
- Consumption trends and distribution channels in Thailand.
Therefore, in order to access the Thai market, Vietnamese enterprises should pay attention to the following:
- Study in detail, update regularly, and ensure full compliance with Thailand’s import regulations and procedures;
- Gain an in-depth understanding of Thai consumer preferences and demand, and then improve product design and quality accordingly to better meet market needs;
- Research how to build and promote Vietnamese brands in the Thai market;
- Learn about the mechanisms and methods for accessing distribution channels and distributors in Thailand, especially e-commerce channels, which are becoming increasingly widespread and are emerging as a major shopping trend among Thai consumers.
Based on the analysis above regarding Thai consumer trends, several appropriate marketing strategies for Vietnamese products to move closer to Thai consumers include:
- Respect local culture: Understanding and respecting Thai customs and cultural values is essential. All information should be presented in Thai, and communication messages should be adjusted to suit local preferences, language, and culture, thereby creating a stronger connection with Thai consumers.
- Leverage social media: Make use of popular platforms in Thailand such as Facebook, Instagram, and LINE to carry out communication campaigns. Personalizing content to match Thai users’ preferences can significantly improve brand awareness.
- Cooperate with Thai KOLs or influencers who have influence over target customer groups in order to build trust and enhance brand credibility.
Solutions for improving competitiveness
Enhancing competitiveness is a sustainable solution for Vietnamese products to grow in both the domestic and export markets. To achieve this, enterprises should pay particular attention to the following measures:
- Invest in technical improvement and increase the technological content of production and processing activities (through joint ventures and partnerships with researchers and domestic and foreign enterprises; upgrading or acquiring modern production processes and technologies, etc.);
- Invest in human resources by developing structured labor training plans and strengthening the capacity of key managers, technology engineers, and market research specialists;
- Conduct research to improve product quality, design, and other features so that products better match the needs and preferences of Thai consumers;
- Focus on brand building and promoting products to Thai importers and consumers through various channels (such as trade fairs, exhibitions, and social media advertising), while also paying greater attention to warranty and after-sales policies in order to attract Thai consumers.
Seeking information and support from the government, trade promotion agencies, and industry associations
To increase the benefits derived from RCEP, the Government, trade promotion agencies, and industry associations are likely to carry out more activities in the coming period to support enterprises in expanding trade with RCEP member countries, including Thailand. Vietnamese exporters can take advantage of these support activities to obtain information and advice on RCEP commitments, receive assistance in connecting with Thai importers, and promote Vietnamese products to consumers in Thailand.
Source: Center for WTO and International Trade - VCCI
