Those are the big problems of Vietnam enterprises that mentioned so much in seminar of the Vietnam-Japan economic partnership agreement ( VJEPA ) held by the ministry of Industry and Trade on December 21 in Ha Noi

The public health is given the top priority
For requirements in goods, Mr. Le Quang Lan, deputy manager of department of Trade Policy ( Ministry of Industry and Trade ) said : “ the quality of import products is the problem that Japan never talks because this is the obligatory regulation for all exporters when approaching this market

Japan is currently one of countries applying the system of quality standards, food safety and hygiene with the strict requirements in the purpose of protecting public health. The Japan’s standards almost equivalent, even higher than the normal international standards. But the standards of quality are applied in accordance with principles of the World Trade Organization ( WTO ), meaning that it is non-discrimination with domestic or import products

Mr. Lan added that the relationship of Japan enterprises is very closely. Therefore, the Vietnam enterprises want to penetrate the Japan market, they should pass the domestic enterprises who has affirmed their reputation in this market

However, according to the assessment, this is still a potential market for Vietnam enterprises due to nearky 130 million consumers and the VJEPA has officially been effective

Vietnam agricultural products will get benefit most
As a developing country, Japan doesn’t implement the protective policy in tariff for most of industrial products. The average tax in the industry of this country is just below 5%

For this, over 95% tax of industrial products with nearly 95% of export turnover of Vietnam’s industrial products to Japan are enjoying the preferential import tax to 0%

If including both of products will reduce and remove in the route of 10 years, this figure 97% of tarriff lines and 98% of export’s value of our country will enjoy the preferential import tax rate to 0%

However, according to the evaluation of ministry of Industry and Trade, the export agricultural products of Vietnam are the products which enjoying the benefit most from this agreement. Specifically, the VJEPA will create good conditions for Vietnam enterprises in exporting agricultural products and seafoods to Japan because it committed to reduce tax for equivatent products with nearly 84% of the export agricultural products of Viet nam

Once VJEPA is effective, among 2020 agricultural tariff lines, Japan removed right 784 tariff lines, get 36% total agricultural tariff lines and 67,6% the export’s value of Vietnam

The tariff lines has the reducing route from 3 to 5 years includes 14 products which have potentiality in export such as : sodium glutamate, soybean, ginger, fruits : banana, durian, rambutan…the turnover of these agricultural products is about 14% of total agricultural export of Vietnam to Japan

The partners also committed to reduce and remove the import tax for 72 kinds of agricultural products for 7 years and 214 kinds with the route reducing and removing tariff for 10 years. In which, the noticeable things that some products: vegetables, processed fruits, maize, processed cassave, spices, sauces are products which Vietnam enterprises have a lot of advantages when exporting to this market

For seafood, among 330 products are 64 products reducing as soon as the agreement is implemented, accounting for 71% of Vietnam seafood export to Japan

Besides, according to committing, Japan will assist Vietnam to build a center for agricultural products’ quality control . For this, once this center certificates, the products export to Japan won’t be checked, to avoid the risks for enterprises

The Vietnam-Japan economic partnership Agreement ( VJEPA) was signed on December 25, 2008 and become effective from October 1, 2009

This agreement has a global content, there are many aspects such as : trade in goods, trade in services, investment, improving the business environment… Along with economic agreements which signed before of two countries, VJEPA will create a global, stable and favourable legal model for trade and investment of two countries’s enterprises

Source: VNEconomy

Translated by Vietfish Community