Japan needs to import many of Vietnam’s strong products and has the potential to become the main supply source for this country.
According to information from the Asia-Africa Market Department (Ministry of Industry and Trade), Japan is currently Vietnam’s 4th largest trading partner (after China, the United States and South Korea). In particular, Japan is the 3rd largest export market (after the United States and China) and is also the 3rd largest import market (after only China and Korea) of Vietnam.
Trade turnover has increased steadily over the years
Statistics show that bilateral trade turnover between the two countries has increased steadily over the years. Total two-way trade turnover in 2020 reached 40 billion USD; in 2021 reached 42.7 billion USD; in 2022 reached 47.6 billion USD; in 11 months of 2023 will reach more than 41 billion USD.
Vietnam imports from Japan goods for industrial production including machinery, equipment, tools and spare parts, electronic products and components, iron and steel of all kinds, fabrics of all kinds, and automobile components. , plastic raw materials, chemicals, textile raw materials, garments, leather, shoes, metals…
Japan is a large import market for vehicles and spare parts, other machinery, equipment, tools and spare parts, wood and wood products, aquatic products, computers and electronic products and components. …which Vietnam has strengths. In the opposite direction, Japan exports mainly machinery, spare parts, equipment… to Vietnam. The two countries have given each other the most-favored-nation tax rates since 1999.
Is the country that has signed the most FTAs with Vietnam
Japan is currently one of Vietnam’s most important economic partners and is the first G7 country (Group of Leading Industrialized Countries in the World) to recognize Vietnam’s market economy status (October/ 2011). Therefore, the two countries have many opportunities to continue promoting trade and investment cooperation, especially in a world situation with many complex and unpredictable changes.
In particular, the Asia-Africa Market Department also said that Japan is currently the partner that has signed the most bilateral and multilateral Free Trade Agreements (FTAs) with Vietnam.
It is worth noting that Vietnam and Japan have many opportunities for cooperation in the field of trade because the two economies complement each other. Japan is a country with a highly developed economy, possesses the world’s leading advanced technology and is one of the leading countries in the application of science and technology and the development of digital economy and society. number association.
Meanwhile, Vietnam possesses a highly open economy, maintaining a rapid growth rate, abundant young human resources, and the need to improve competitiveness and industrial production efficiency. The two economies are highly complementary and have great potential for cooperation in the fields of technological innovation, digital transformation and supply chain diversity.
Quality is the top factor for exporting to Japan
Talking about exporting to the Japanese market, most businesses and associations recognize that Japan is a market with high-quality requirements for exported goods.
The reason, according to the Vietnam Fruit and Vegetable Association, is that Japan’s agricultural product import standards are very high, and Vietnamese goods cannot fully meet them. Agricultural, forestry and fishery products must ensure food hygiene and safety standards, animal and plant quarantine, and are required to be produced and raised according to GAP, HACCP or JAS standards – Agricultural standards Japanese industry.
Commenting on trade exchanges between Vietnam and Japan in the coming time, trade experts predict that cooperation will be supported more when businesses from both sides exploit advantages and tax incentives. from FTAs such as CPTPP, RCEP… Vietnam has been an attractive destination for investment capital of Japanese businesses with the advantage of market size and growth potential, stable socio-political situation, The level of human resources is increasingly high.
Japan is the third largest foreign direct investor (FDI) in Vietnam (after Korea and Singapore) with 5,227 valid FDI projects, a total registered investment capital of more than 71.41 billion USD (calculated). cumulative until October 20, 2023).
In the opposite direction, Vietnam has 106 investment projects in Japan with a total registered investment capital of about 19.5 million USD.
(According to Government Newspaper)
