President Tran Dai Quang and his spouse at Haneda airport, Tokyo (Source: VNA) Hanoi (VNA) – President Tran DaiQuang’s State visit to Japan from May 29 – June 2 is expected to breath newlife into bilateral trade in the near future.
Since the establishment of the extensivestrategic partnership for peace and prosperity in Asia in March 2014, Vietnam –Japan ties have thrived.
According to the Ministry of Industry andTrade (MoIT), Vietnam’s exports to Japan hit 2.7 billion USD as of early March,up nearly 14.3 percent annually, mostly apparel (537 million USD), means of transportation(365.2 million USD) and machinery and equipment (259 million USD).
During the period, the country spent 2.705billion USD on imports from Japan, up nearly 17 percent annually, resulting ina trade deficit of roughly 5 million USD. Most imports were machinery andequipment (675 million USD); computers, electronics and spare parts (392million USD) and iron and steel (203 million USD).
A survey recently announced by the JapanExternal Trade Organisation (JETRO) named Vietnam the second best businessdestination for Japanese firms, behind China.
As of late March, Japan recorded 3,693projects in Vietnam with a total registered capital of more than 49.8 billionUSD, ranking second out of 116 countries and territories investing in thecountry.
From the beginning of this year to March 20,Japan posted 96 newly-licensed projects, 42 others with additional capital and112 purchases of shares worth roughly 593 million USD, ranking fourth out ofcountries and territories investing in Vietnam.
Japan is the largest provider of officialdevelopment assistance to Vietnam, focusing on infrastructure, competitiveness,high-quality human resources training, climate change response and other fields.
Hoang Quang Phong, Vice Chairman of theVietnam Chamber of Commerce and Industry, suggested continuing to improve administrativereform and corporate competitiveness and enhancing production output whiletapping potential in agriculture, tourism, human resources training,transportation and distribution.
Deputy head of the MoIT’s Department of the Asia-PacificMarkets Le An Hai said Vietnam’s benefits from the Vietnam – Japan EconomicPartnership Agreement (VJEPA) and free trade agreements are yet to reflectbilateral trade potential.
Under the Vietnam – Japan free tradeagreement, average taxes on Vietnam’s exports to Japan will be cut to 2.8percent this year. At least 86 percent of agro-forestry-aquatic products and 97percent of industrial goods exported to Japan will enjoy preferential tariffs.
Taxes on Japan’s exports to Vietnam will bereduced to 7 percent in 2018. The strongest free trade commitments are given tofarm produce, aquatic products, apparel, iron and steel, chemicals andelectronic spare parts.
In the next decade, Vietnam and Japan willbasically complete a tax reduction roadmap to build a free trade area. Accordingly,94.53 percent of Vietnam’s exports and 87.6 percent of Japan’s exports willenjoy import tax exemption.
Therefore, Hai asked Vietnamese businessesto improve trade capacity and closely oversee export quality standards.
To lift exports to Japan, analysts adviseddomestic firms to devise business strategies based on reviewing theirstrengths, weaknesses, opportunities and challenges, existing positions andgoals.
Minister of Industry and Trade Tran Tuan Anhasked for effectively realising the VJEPA to double two-way trade andinvestment by 2020 compared to 2014.
Both sides need to facilitate trade in farmproduce and aquatic products, effectively realise the Vietnam – Japan JointInitiative to improve business climate and promote Japanese investment inVietnam, he said.
He underscored the need to launch actionplans for six industries chosen in Vietnam’s Industrialisation Strategy withinthe Vietnam – Japan cooperation framework towards 2020 with vision to 2030,towards lifting two-way trade in the near future.-VNA
Since the establishment of the extensivestrategic partnership for peace and prosperity in Asia in March 2014, Vietnam –Japan ties have thrived.
According to the Ministry of Industry andTrade (MoIT), Vietnam’s exports to Japan hit 2.7 billion USD as of early March,up nearly 14.3 percent annually, mostly apparel (537 million USD), means of transportation(365.2 million USD) and machinery and equipment (259 million USD).
During the period, the country spent 2.705billion USD on imports from Japan, up nearly 17 percent annually, resulting ina trade deficit of roughly 5 million USD. Most imports were machinery andequipment (675 million USD); computers, electronics and spare parts (392million USD) and iron and steel (203 million USD).
A survey recently announced by the JapanExternal Trade Organisation (JETRO) named Vietnam the second best businessdestination for Japanese firms, behind China.
As of late March, Japan recorded 3,693projects in Vietnam with a total registered capital of more than 49.8 billionUSD, ranking second out of 116 countries and territories investing in thecountry.
From the beginning of this year to March 20,Japan posted 96 newly-licensed projects, 42 others with additional capital and112 purchases of shares worth roughly 593 million USD, ranking fourth out ofcountries and territories investing in Vietnam.
Japan is the largest provider of officialdevelopment assistance to Vietnam, focusing on infrastructure, competitiveness,high-quality human resources training, climate change response and other fields.
Hoang Quang Phong, Vice Chairman of theVietnam Chamber of Commerce and Industry, suggested continuing to improve administrativereform and corporate competitiveness and enhancing production output whiletapping potential in agriculture, tourism, human resources training,transportation and distribution.
Deputy head of the MoIT’s Department of the Asia-PacificMarkets Le An Hai said Vietnam’s benefits from the Vietnam – Japan EconomicPartnership Agreement (VJEPA) and free trade agreements are yet to reflectbilateral trade potential.
Under the Vietnam – Japan free tradeagreement, average taxes on Vietnam’s exports to Japan will be cut to 2.8percent this year. At least 86 percent of agro-forestry-aquatic products and 97percent of industrial goods exported to Japan will enjoy preferential tariffs.
Taxes on Japan’s exports to Vietnam will bereduced to 7 percent in 2018. The strongest free trade commitments are given tofarm produce, aquatic products, apparel, iron and steel, chemicals andelectronic spare parts.
In the next decade, Vietnam and Japan willbasically complete a tax reduction roadmap to build a free trade area. Accordingly,94.53 percent of Vietnam’s exports and 87.6 percent of Japan’s exports willenjoy import tax exemption.
Therefore, Hai asked Vietnamese businessesto improve trade capacity and closely oversee export quality standards.
To lift exports to Japan, analysts adviseddomestic firms to devise business strategies based on reviewing theirstrengths, weaknesses, opportunities and challenges, existing positions andgoals.
Minister of Industry and Trade Tran Tuan Anhasked for effectively realising the VJEPA to double two-way trade andinvestment by 2020 compared to 2014.
Both sides need to facilitate trade in farmproduce and aquatic products, effectively realise the Vietnam – Japan JointInitiative to improve business climate and promote Japanese investment inVietnam, he said.
He underscored the need to launch actionplans for six industries chosen in Vietnam’s Industrialisation Strategy withinthe Vietnam – Japan cooperation framework towards 2020 with vision to 2030,towards lifting two-way trade in the near future.-VNA
VNA
