THE IMPACT OF THE RCEP AGREEMENT ON THE IMPORT OF INPUT MATERIALS FOR VIETNAM’S GARMENT INDUSTRY

Abstract

The Regional Comprehensive Economic Partnership (RCEP) has had certain impacts on Vietnam’s garment industry – a sector heavily dependent on imported input materials. This study applies the gravity model to measure the impact of RCEP on Vietnam’s garment industry’s import of input materials, using panel data from 14 partner countries over the period 2010–2023. The empirical findings indicate that since the implementation of RCEP, its influence on Vietnam’s garment industry’s imports of input materials has been positive but not yet significant. Based on these findings, the authors propose solutions to help state management agencies and domestic garment enterprises utilize the benefits of RCEP, enhance domestic