International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 8 (August 2023), Pages: 98-105

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 Original Research Paper

Macroeconomic factors and trade balance: An analysis of Vietnam's relations with RCEP countries

 Author(s): 

 Thi Anh Tuyet Le *

 Affiliation(s):

 International Economic Faculty, Banking University Ho Chi Minh City, Ho Chi Minh City, Vietnam

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0009-0007-6091-7821

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.08.011

 Abstract:

This study conducts a comprehensive analysis of the impact of macroeconomic factors on Vietnam's trade balance with the member countries of the Regional Comprehensive Economic Partnership (RCEP) during the period from 2002 to 2021. Grounded in established trade theories and a comprehensive review of pertinent literature on inter-country trade balances, the investigation identifies the pivotal determinants influencing trade balances between Vietnam and RCEP nations. These determinants encompass key elements such as tariffs (TRF), foreign direct investment (FDI), gross domestic product (GDP), geographic distance (DIS), exchange rate (EXC), and the trade openness of individual economies (OPEN). The research outcomes substantiate parallels with previous studies, indicating that reducing tariffs, enhancing trade openness, augmenting GDP, and attracting higher foreign direct investment within RCEP member nations yield constructive effects on Vietnam's long-term trade balance. Conversely, in the short term, impediments like exchange rate fluctuations (EXC), geographic distance (DIS), and GDP disparities emerge as challenges to refining Vietnam's trade balance with RCEP countries. Accordingly, this article proffers pragmatic policy recommendations aimed at advancing Vietnam's trade equilibrium with RCEP countries. Proposed measures include facilitating business comprehension of tax regulations within RCEP, elevating the investment milieu to entice capital from developed RCEP economies, and executing trade promotion initiatives to facilitate market access for businesses across RCEP jurisdictions.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Macro factors, Vietnam's trade balance, RCEP countries, Tariffs, Foreign direct investment

 Article History: Received 9 March 2023, Received in revised form 16 June 2023, Accepted 3 July 2023

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Le TAT (2023). Macroeconomic factors and trade balance: An analysis of Vietnam's relations with RCEP countries. International Journal of Advanced and Applied Sciences, 10(8): 98-105

 Permanent Link to this page

 Figures

 Fig. 1 Fig. 2 Fig. 3 

 Tables

 Table 1 Table 2 Table 3 Table 4 

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