SME

By Ee-Hui Tan | First published: September 15, 2023   Updated: August 27, 2025  

With the Regional Comprehensive Economic Partnership (RCEP) in full effect, we explore how this groundbreaking trade agreement is giving Vietnam’s SMEs a competitive edge.

• Known as the world’s largest free trade agreement, the RCEP is breaking down barriers to intra-Asia trade.
• Vietnam’s SMEs can benefit from lower tariffs, streamlined customs clearance, and opportunities to diversify their supply chains.
• Since the RCEP came into effect, Vietnam’s business landscape has shown strong growth.

When the Regional Comprehensive Economic Partnership (RCEP) first took effect in 2022, the World Bank predicted that Vietnam’s economy would have the highest gains among all RCEP countries. Three years on, Vietnam is making good on this forecast. In 2025, its GDP is expected to grow by 6.6% – the highest growth in ASEAN.

Since coming into effect, the RCEP has been lowering trade barriers across 15 member countries: the 10 ASEAN nations, as well as Australia, China, Japan, South Korea, and New Zealand. While it’s still early days, Vietnam is reaping the benefits of stronger intra-Asia trade ties. Its trade with RCEP countries rose to about USD 395 billion in the first 11 months of 2024, making up 55% of its global trade.

But figures aside, what does the RCEP actually offer Vietnam’s businesses – especially small and medium-sized businesses (SMEs) – looking to expand into new markets?

How the RCEP trade agreement can benefit Vietnam’s SMEs

Expanding across borders can be costly and complex for SMEs. Cross-border trade regulations are often complicated and fast-changing, and many small businesses lack the resources to manage them efficiently. In addition, high import and export tariffs can significantly eat into your bottom line.

The RCEP aims to eliminate these barriers by providing a unified rulebook to lower tariffs and reduce red tape for businesses in member countries. As RCEP members gradually improve market access, regional trade and economic ties will grow stronger.

While Vietnam participates in 18 trade deals, the RCEP stands out for its sheer scale. As the world’s largest free trade agreement, it features the largest participating population, the most diversified membership structure, and the greatest development potential. The RCEP also covers about 30% of the world's population, economic volume, and total trade – giving Vietnam’s small businesses access to a wide range of cross-border trade opportunities.

As the RCEP matures, these are the key benefits that small businesses can leverage to break onto the global stage:

1. Low to zero tariffs give businesses a competitive edge

Substantial tariff reductions stand out as one of the biggest benefits of the RCEP for Vietnamese SMEs. The agreement progressively eliminates duties for at least 92% of goods traded among RCEP members, either immediately or over the next 20 years.

With lower import and export costs, Vietnamese SMEs gain the ability to competitively price their products for foreign markets. If you run a textile business, for example, you can calculate your savings on tariffs and consider lowering your prices strategically. This advantage can help you outperform non-RCEP businesses when expanding abroad.

Thanks to these tariff concessions, Vietnam’s business landscape is on track for strong growth. According to the World Bank, Vietnam is expected to lead all RCEP member countries with the highest export growth between 2020 and 2035, with a projected increase of 11.4%. That’s a powerful incentive for SMEs to consider global expansion.

2. Streamlined customs procedures reduce shipping delays

When shipping overseas, customs delays can disrupt operations and frustrate waiting customers. The RCEP addresses this by introducing comprehensive measures to streamline customs procedures and speed up clearance times.

A key benefit is the use of technology to simplify pre-arrival processing and customs checks, enabling faster clearance within 48 hours of arrival. The RCEP also requires member countries to clear express shipments and perishable goods within six hours.

These measures can help Vietnamese SMEs increase supply chain efficiency and win customer loyalty with a smoother shipping experience.

3. Diversified supply chains help businesses reduce risk

Unlike other ASEAN trade agreements, the RCEP covers a broader group of countries. These include markets from which Vietnamese businesses import raw materials. For instance, China, South Korea, and Japan were Vietnam’s top import markets in 2024.

Let’s say your business is thinking of sourcing raw materials from China. Before the inception of RCEP, your final product might not have qualified for lower tariffs when you export to other ASEAN markets. Under the RCEP, however, you can import originating materials from the 15 member countries and claim preferential tariff treatment on your final product.

This makes it easier for SMEs to source affordable raw materials from a wider pool of suppliers and build more resilient supply chains. With disruptions on the rise, supply chain flexibility can help small businesses adapt quickly while venturing into new markets.

From Vietnam to global growth

While the RCEP offers a solid foundation for Vietnam’s SMEs to expand regionally, turning its benefits into real business gains requires efficient logistics. Working with an experienced cross-border logistics provider helps businesses speed up deliveries and streamline their imports and exports.

To strengthen our logistics support for Vietnam’s SMEs, we at FedEx are enhancing our international shipping services from Vietnam to the world. In 2025, FedEx moved to a direct-serve presence in Vietnam, giving local businesses greater access to international shipping solutions and advanced digital tools that streamline the shipping process.

By making the most of business-friendly trade policies and reliable logistics support, Vietnam’s SMEs can step confidently onto the world stage.