Opportunities to export Vietnamese agricultural products to Japan

Deputy Minister of Agriculture and Rural Development (MARD) Tran Thanh Nam said that it is convenient that Vietnam and Japan have both joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the new generation free trade agreement that came into force in January 2019.

Speaking at the Forum on Connecting Agricultural Enterprises between Vietnam and Japan on September 19, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam shared that Vietnam and Japan are two countries that have established and built good friendship cooperation for many years.

Both countries have the need to cooperate to take advantage of additional advantages in agricultural production in order to improve competitiveness and added value to dominate and expand market share in the domestic market as well as the countries participating in CPTPP.

The promotion of exports of agricultural and food products accompanied by improved processing capacity, bringing Vietnamese agricultural and food brands to the world in general and Japan in particular is one of the main tasks of MARD is implementing to further affirm the position of Vietnamese agricultural products in the global value chain and develop competitiveness in the context of opening up agricultural products market.

Japan is currently the third largest export market (after the United States and China) and the third largest import market (after China and Korea) of Vietnam. In 2018, the total import and export turnover between Vietnam and Japan reached USD 37.9 billion, accounting for 7.9% of Vietnam’s total trade turnover with the world.

According to the General Department of Customs, in the first 8 months of 2019, vietnam – Japan import and export turnover reached USD 25.7 billion, up 4.9% over the same period in 2018. In which exports reached $ 13.3 billion, up 9.1%, imports reached $ 12.4 billion, up 0.7%.

In the field of agriculture, the Ministry of Agriculture of the two countries has developed a long-term cooperation framework as well as memorandum of cooperation on dissemination of regulations and certifications related to the quality of agricultural products and food products, development of Vietnam’s rice value chain; many projects in the field of agricultural and rural development have received ODA support from Japan for implementation.

In particular, Vietnam and Japan are the two countries that have joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into force in January this year.

According to the commitment of CPTPP member countries, as soon as this agreement comes into force, Japan will immediately eliminate import duties on some key agricultural products of Vietnam including: coffee (roasted, grinded, dissolved), pepper, cashew and other spices; some fruits and vegetables (fresh flowers, tropical fruits, vegetables: onions, garlic, mushrooms, cucumbers), processed, canned fruit products.

Items such as tomatoes, potatoes, corn, beans abolished the route after 5 years, pineapple abolished the tax roadmap after 10 years, temperate fruit abolished the route after 5-6 years; juice of fruits with a roadmap of 5-11 years.

For pork, import tariffs will be eliminated after 10 years, accompanied by defensive measures. Beef is only committed to reducing taxes on a five-year roadmap, accompanied by safeguards. For shrapnel chicken, Japan abolished the tax as soon as CPTPP came into effect, while the chicken has not been cut, the roadmap is eliminated from the 6th year…

This is a favorable condition and also an opportunity not only to promote cooperation in potential fields, increase the import and export turnover of goods between the two countries but also enhance investment cooperation, technology transfer, expert experience exchange cooperation, vocational training cooperation for agricultural workers between Vietnam and Japan in the future.

By the end of 2018, there were about 1,800 Japanese enterprises operating in Vietnam, with an investment of USD 9.5 billion, of which Japanese enterprises are increasingly interested in investing in agriculture, especially high-tech agriculture.  

In 2018, the total import and export turnover between Vietnam and Japan reached USD 37.9 billion, accounting for 7.9% of Vietnam’s total trade turnover with the world. In which, the import and export turnover of agricultural products is about USD 3 billion (accounting for 7.9% of total turnover).

In the first 8 months of 2019, Vietnam – Japan import and export turnover reached USD 25.7 billion, up 4.9% over the same period in 2018. In which Vietnam’s main agricultural and forestry and aquaculture exports to this market are estimated at US$1.9 billion (seafood US$942.7 million; vegetables reach US$80.5 million; wood and wood products US$872.9 million, and some other products such as cashew nuts, coffee, pepper, cassava…).

Besides, Vietnam also imports from Japan some items such as vegetables, dairy products, seafood, wood …; the import value in the first 8 months of 2019 reached more than 350 million USD (Vietnam’s export turnover to Japan only accounted for about 2.5% of the country’s total import turnover).

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