VJEPA Brings Benefits to Businesses
The Vietnam-Japan Economic Partnership Agreement (VJEPA) took effect on October 1, 2009. To provide information about the agreement for businesses, the Ministry of Industry and Trade together with the Multilateral Trade Assistance Project (MUTRAP) organized a workshop recently in Hanoi.
Representatives of the Ministry of Industry and Trade and the Ministry of Finance spoke of the potential benefits VJEPA will create for trade, origin principles under VJEPA, trade-service liberalization and other issues within the framework of VJEPA and tariff commitments.
Vietnam Economic News’ reporter Dinh Lan talked with Le Quang Lan, the deputy head of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, to broaden the understanding of practical benefits the VJEPA will bring to businesses.
What are the most practical benefits VJEPA will create for Vietnamese exporters?
VJEPA greatly helps Vietnamese exporters to Japan. First, Japan’s tariffs on Vietnamese exports to this market will be lowered sharply. Specifically, 86 percent of Vietnamese exports to Japan will be subject to a zero percent tariff in the first year of VJEPA enforcement and this itinerary will take 10-15 years for completion. This means that Vietnamese businesses can save money if they sell products to Japan.
Japan will also create more favorable conditions for Vietnamese farm products including seafood exports to this market to meet the requirements, regarding food quality, hygiene and safety. Vietnamese exporters will be able to meet Japanese administrators to learn how to access the Japanese market more easily. These are practical benefits for Vietnamese businesses.
In addition, on the sideline of VJEPA, Vietnam and Japan will launch several important projects to create many other benefits. These include a Ministry of Agriculture and Rural Development project to establish a food hygiene and safety center, which will examine Vietnamese goods before they go to Japan. The Vietnamese Ministry of Industry and Trade and the Japanese Ministry of Economics, Trade and Industry have signed an agreement to develop an assistance project towards the support industry in Vietnam. There has also been a manpower training project for Vietnam with an emphasis on the health sector.
What should businesses do to make most of the agreement?
First, they need to understand the principles/regulations under VJEPA, such as the regulations already outlined in a Ministry of Finance circular, regarding the Vietnamese import tariff table, or the Ministry of Industry and Trade circular on the origin principles.
I think, businesses should be active in learning about Japanese trade policies and find their best way to enter the Japanese market. Businesses should also contract the Ministry of Industry and Trade or related ministries and offices for more information.
Have you received any response from businesses now that VJEPA has been in effect for more than two months?
No, not yet. This may mean that businesses are doing well under the agreement. Before VJEPA became effective, the ASEAN-Japan Economic Partnership Agreement with similar contents was in place and I guess that Vietnamese businesses are making use of the ASEAN-Japan Economic Partnership Agreement. Japan’s commitments to both agreements in the first stage are nearly the same./
VEN
Tags: Vietnam Japan cooperation
Posted by VBN on Jan 6 2010. Filed under Int'l Cooperation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
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