In the baseline, between 2020 and 2035, the average tariffs imposed by Vietnam decline from 0.8 percent to 0.2 percent, while the tariffs faced by Vietnam are reduced from 0.6 percent to 0.1 percent.

In the most optimistic scenario, where all benefits are applied, Vietnam has the highest gains of all RCEP member countries. Vietnam’s income levels increase by 4.9 percent relative to the baseline, higher than other countries, where the income level increases by 2.5 percent.

While exports and imports increase for all RCEP member countries, Vietnam is expected to experience the highest increase in exports at 11.4 percent. Similarly, Vietnam’s imports also grow significantly at 9.2 percent. Of that, the motor vehicle sector expands the most for Vietnam at 18.6 percent, followed by textiles at 16.2 percent, and apparel at 14.9 percent, mainly due to reductions in non-tariff measures.

The RCEP offers an opportunity to boost growth and support recovery from the COVID-19 pandemic. The RCEP would also help Vietnam access large consumer markets double the size of those included in the CPTPP, including China, South Korea, and Japan. According to the WB, RCEP offers significant opportunities for Vietnam's small and medium-sized enterprises to move up the value chain.