RCEP enhances market opening through e-commerce

RCEP’s regulations on e-commerce aim to create a healthy and reliable environment for online consumers - photo: TT

The 17 clauses on e-commerce in RCEP found in the agreement’s Chapter 12 include prominent provisions on cybersecurity, customs duties and server establishment stated in new-generation free trade agreements (FTAs). E-commerce commitments in RCEP share similarities with the ASEAN (Association of Southeast Asian Nations) Agreement on Electronic Commerce and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in terms of commitment levels while having some new provisions compliant with the actual development demands of member countries.

The RCEP’s e-commerce commitments aim to enhance market opening through e-commerce applications, create a healthy and reliable environment for online consumers, and strengthen cooperation among member countries in this field. They are divided into three groups - facilitation commitments, commitments to establishing an enabling environment for e-commerce development, and those to promoting cross-border e-commerce.

Specifically, the facilitation commitments are related to the state’s policies on paperless trade activities such as provisions on electronic signatures and paperless trade. They aim to ensure that e-commerce activities are conducted efficiently and fairly.

Meanwhile, the commitments to establishing an enabling environment for e-commerce development were designed for personal information protection, laws to improve the domestic legal framework, and laws to protect consumers in the online environment from fraudulent e-commerce activities. The goal of these commitments is to build and promote consumer trust in e-commerce activities and establish a solid foundation for e-commerce development.

The commitments to promoting cross-border e-commerce are related to cross-border exchange of personal data through electronic means and server systems, which are considered prerequisites for promoting cross-border online transactions among participating members. The concerned provisions govern cross-border information flows, server systems, and dispute resolution. The objective is to enhance cross-border e-commerce activities among countries in the RCEP agreement through electronic means.

Assessing the impact of the e-commerce provisions on Vietnam’s economy, the Ministry of Industry and Trade said the commitments aim to improve supply chains and enhance integration, and the implementation of e-commerce commitments will promote investment and help attract foreign investment while not applying taxes on electronic transmissions and not hindering the transfer of electronic data across borders for investment and business activities among RCEP members, as well as facilitate technology and management expertise transfer among countries.

E-commerce commitments will help Vietnamese businesses reduce costs and experience seamless e-commerce, participate in business development integration, and join global supply chains with major partners.

However, the Ministry of Industry and Trade has warned businesses of competitive pressures from foreign competitors, limitations in labor capacity, and labor shortages in the e-commerce sector. It is necessary to upgrade a number of laws and regulations to realize the RCEP’s commitments, the ministry said.