Measures discussed to boost Vietnam-Japan trade ties

Many experts shared the view that domestic products and enterprises have faced huge challenges from renowned, high-quality Japanese brands with low prices, due to preferential import tariffs from the Vietnam-Japan Economic Partnership Agreement (VJEPA). 

According to the VJEPA, which came into effect in October 2009, from 2015 to 2019, an additional 150 Japanese product lines will enjoy zero% import tariffs when entering Vietnam, raising the total number of product lines that benefit to 3,234, accounting for 34% of the total import tariffs. 

By 2019, roughly 92% of the products are expected to enjoy import tariff exemptions when entering the respective nations. Specifically, Japan committed to free trade for 94.53% of the trade value, while Vietnam aims for 87.66% of the trade value. 

Deputy Director of the Central Institute of Economics Management (CIEM) Tran Dinh Thien pointed to the importance of credit incentives and support from authorities, ministries, and sectors in boosting enterprises’ operation and their investment in infrastructure and technologies in the early integration process. 

Deputy Director General of the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) Nguyen Van Du stressed the need for credit incentives, in terms of preferential interest rates, exchange rates or loan policies being devised for export businesses involved in the Vietnam-Japan trade. 

Vietinbank, as the intermediary of international financial institutions such as the World Bank (WB), the Japanese Bank of Tokyo Mitsubishi (BTMU) and the Asia Development Bank (ADB), has provided financial support for domestic and Japanese enterprises to boost their operation and foster Vietnam-Japan ties, Du said. 

A number of joint credit programmes have also been implemented by the bank, the Japanese Bank for International Cooperation (JBIC) and the Japanese International Cooperation Agency (JICA) to support small- and medium-sized enterprises (SMEs). 

In addition, the bank has offered a variety of support packages to the firms trading directly with Japan, such as preferential interest rate loans for those operating in the fields of agro-aquatic products, petroleum and oil, automobile manufacturing, garment-textiles and support industries. 

Deputy Minister of Finance Nguyen Tri Dung called for joint efforts from experts, development funds, commercial banks and enterprises to tap the VJEPA’s potential and participate more fully in global market chains. 

Meanwhile, Hanoi Support Industries Business Association President Nguyen Hoang said ministries and sectors should enhance their understanding of market developments and relevant trade policies in a bid to better the implementation of the agreement. 

Government statistics show that between 2011 and 2013, Japan topped the list of 101 countries and territories investing in Vietnam. 

Japan is Vietnam’s third largest trade partner, with trade expected to near US$30 billion this year. Its investment is expected to reach US$38 billion.