Home / Knowledge / News / Vietnam ratifies FTA with Japan
Vietnam ratifies FTA with Japan
21
Apr '09
The Prime Minister Nguyen Tan Dung has ratified a comprehensive free-trade agreement with Japan. This agreement will take effect in the month of July this year. Vietnam-Japan Economic Partnership Agreement (VJEPA) is a comprehensive bilateral trade agreement, which was initiated in October 2006 during Prime Ministers visit to Japan and was signed in Tokyo last December.

The agreement covers several important areas such as goods and services, business environment improvement, investment, labor movement and technical standard co-operation. It is expected that, 92 percent of goods that have been traded between Vietnam and Japan would be free from the tariff charges within next ten years, under this agreement.

With this agreement, there will be tax reduction or exemption for few commodities such as Vietnam's agricultural products, garments and marine products as well as for Japan's industrial supplies, including electronics and car equipment.

In the initial stages, Japan will help Vietnam with regards to certain things such as training Vietnamese nurses in Japan, developing support industries, establishing a bilateral dialogue mechanism for the garment and textile sector, improving food hygiene and safety inspection capacity and perfect quality standard system.

VJEPA will act as a tool to encourage the economic co-operation, trade and investment exchanges between Vietnam and Japan. Along with this, many opportunities are coming on the doorstep of agricultural, forestry and aqua-cultural companies, through this agreement, to access Japanese market.

Under this agreement, out of 30 types of Vietnamese agri-aqua-forestry commodities with largest export values, 23 commodities will be exempted from all taxes. Each year, a quota of 100 tons of honey will be offered by Japan to Vietnam, which will gradually increase to 150 tons. This honey will attract a tariff of 12.8 percent imposed on export volumes within the quota.

Durian will enjoy zero tax and a gradual elimination of taxes within coming five or seven year will be applicable for pepper and sweet corn. Coffee and tea will become tax-free in 15 years; whereas cuttlefish and octopus will get tax-free status after five years and shrimp exports will enjoying this benefit in coming days.

According to the experts, Japan would have large demand for food processed from pork, fresh vegetable, flowers, mechanical appliances and plastic items in near future. However, the experts say that there are some difficulties towards which a keen attention should be paid by the Vietnamese enterprises wishing to access Japanese market.

The first difficulty is lack of information about Japanese market among small and medium-sized Vietnamese enterprises and lack of experience in trading with Japanese companies. Second is Vietnamese need to pay attention to the purchasing habits of Japanese, as Japan has been tightening regulations for food hygiene & safety for agricultural exports to the country and the Japanese customers have strict requirements for quality product.

For finding Japanese partners and accessing their market, the Asia-Pacific Department, Viet Nam's Commercial Affairs office in Tokyo and the Commercial Affairs branch in Osaka, currently are acting as an intermediary for enterprises.

Fibre2fashion News Desk - India


Must ReadView All

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search