Opportunities from RCEP for Vietnam’s goods exports to the Malaysian market
Advantages from harmonized rules of origin and greater choice of preferential tariffs when exporting to Malaysia
By bringing together 15 economies in the Asia-Pacific region, RCEP offers clear advantages to Vietnamese enterprises through the harmonization of rules of origin, a key factor in increasing the ability to benefit from preferential tariffs when exporting to Malaysia. Specifically, RCEP allows cumulation of origin from all member countries, meaning that Vietnamese enterprises may use inputs from any RCEP member country and still have the goods recognized as originating within the bloc. As a result, goods produced in Vietnam can more easily meet origin requirements and benefit from preferential tariff rates compared with ATIGA or ASEAN+1 FTAs, whose rules of origin are more bilateral or more restrictive.
In practice, Vietnam currently imports most of its materials and inputs from RCEP members such as China, Japan, Korea, and ASEAN countries. Therefore, the ability to satisfy RCEP rules of origin is considered high, meaning that the utilization rate of preferential tariffs in exports to Malaysia could improve significantly compared with other FTAs. More importantly, RCEP does not replace but coexists alongside existing FTAs. This gives Vietnamese enterprises more flexibility to choose the most beneficial preferential framework. For example, if the ATIGA tariff rate for a product is higher but its rules of origin are more complicated than under RCEP, a business may choose to claim RCEP preferences to optimize benefits.
Opportunities from reducing non-tariff barriers
Beyond tariffs, RCEP also creates institutional and technical conditions that help Vietnamese goods access the Malaysian market more easily. RCEP commitments on simplifying customs procedures, trade facilitation, promoting equivalence recognition for sanitary and phytosanitary measures (SPS), and encouraging recognition of conformity assessment results in the area of technical standards (TBT) are important factors in reducing unnecessary non-tariff barriers. As a result, Vietnamese goods can shorten customs clearance time, reduce inspection costs, and avoid the risk of being excluded from the market for failure to meet specific technical requirements.
Opportunities to reduce costs and improve competitiveness
The harmonization of rules of origin also creates opportunities for Vietnamese enterprises to import raw materials from RCEP member countries at more reasonable cost. This is particularly important for industries where Vietnam still lacks self-sufficiency in materials, such as textiles and garments, footwear, and electronics. Optimizing input costs will help finished products achieve more competitive prices in Malaysia, a market that is price-sensitive but still demands certain quality standards.
In addition, RCEP includes many commitments in services and institutions that bring indirect but sustainable benefits to exporting enterprises. Opening key service sectors such as finance, logistics, and telecommunications will promote competition in production-support services, thereby helping enterprises access better-quality services at lower cost. As a result, production, operation, and export costs can be significantly reduced, contributing to stronger overall competitiveness for Vietnamese goods.
RCEP also includes provisions on support for small and medium-sized enterprises, promotion of e-commerce, and the establishment of a fair competitive environment. These factors are especially meaningful for smaller Vietnamese enterprises, which account for a large share of exports but often face difficulties in expanding into foreign markets. RCEP helps create a transparent legal framework and reduce risks when entering markets such as Malaysia.
Source: Center for WTO and International Trade - VCCI
