Taking advantage of FTAs ​​to promote exports of many products to Japan

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Enterprises were shared a lot of information about the Japanese market

The above information was emphasized by experts at the Workshop "Promoting exports to the Japanese market and standards to access the AEON Vietnam distribution system" organized by the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in coordination with AEON TOPVALU Co., Ltd. and AEON Vietnam Co., Ltd. on August 26, 2024.

Mr. Tran Phu Lu, Director of ITPC, said that for many years, Japan has been Vietnam's leading important economic and trade partner. Many Free Trade Agreements (FTAs) between the two countries such as the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP), the Vietnam-Japan Economic Partnership Agreement (VJEPA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership Agreement (RCEP) have created practical cooperation frameworks, promoting trade, investment and business relations between the two countries.

According to data from the General Department of Vietnam Customs, the import-export turnover between Vietnam and Japan in the first 7 months of 2024 is estimated at 25.87 billion USD, up 4% over the same period in 2023. Of which, Vietnam's export turnover to Japan is estimated at 13.46 billion USD, up 2.8% over the same period.

Sharing about the opportunities and advantages of Vietnamese goods entering Japan, Ms. Quyen Thi Thuy Ha, Head of the Vietnam Trade Office in Osaka, Japan - Ministry of Industry and Trade, said that the potential for economic cooperation between Vietnam and Japan is still very large. The combination of Vietnam's manufacturing strength and Japan's technology and quality management can bring great benefits to both sides. Currently, the two countries participate in 4 bilateral and multilateral free trade agreements.

Along with that, Japan's import growth is a sign that domestic demand is still quite strong. Vietnam only accounts for about 3% of the total import and export turnover to the Japanese market, so the room and opportunities are still very large.

Regarding industries, Japan has a great demand for processed products, mechanical engineering, especially in the fields of electronics, automobiles, household products, and food.

For textile products, taking advantage of Vietnam's participation in trade agreements such as CPTPP and RCEP brings a large source of imported raw materials for the Vietnamese textile industry, so when businesses expand their exports to Japan, it will be very favorable in terms of the rules of origin of goods.

According to experts, the multilateral trade agreements that Vietnam and Japan are members of have a great impact on the supply chain of the electronics, automobile manufacturing, textile and garment industries in Vietnam. As for the electronics sector, RCEP countries are the largest suppliers of electronic parts and components to Vietnam, accounting for 66% of the total import value of this group of products, from which products when exported to Japan will also have an advantage because they reduce production costs and prices.

Especially for handicraft products and wooden products, Japan is a market where consumers are willing to pay high prices for unique products with artistic value. High-value handmade gifts and products such as pottery, fine arts, and traditional Vietnamese embroidery and rattan products are very popular in Japan.

Mr. Tran Van Truong, Chairman of the Board of Directors of VANTR GAP Food Joint Stock Company, shared information on exports to the Japanese market. Photo: T.H

“Japan has the potential to develop exports in the field of e-commerce, especially when Japanese consumers are increasingly shifting from traditional shopping to online shopping. Taking advantage of this trend can bring new opportunities for Vietnamese businesses.”- Ms. Quyen Thi Thuy Ha emphasized.

Japan has a high demand for agricultural products, especially safe and organic foods. Agricultural products that are not suitable for planting and cultivating in Japan but are in great demand and are expected to continue to increase in the coming time such as coffee, cashew nuts, tropical fruits, frozen vegetables,... these are all strengths of Vietnam.

In addition, in Japan, the number of Vietnamese people currently living, studying and working is about 500 thousand people, accounting for 16% of foreigners, the second largest and is expected to continue to increase in the coming time, so this is also a potential consumer force and at the same time opens up many opportunities for Vietnamese food products to be exported to Japan.

The potential and room for Vietnam in Japan for agricultural, forestry and fishery products is still very large. Japan's import turnover of this group of products is high and has grown strongly in recent years.

According to experts, to take advantage of the large room from the Japanese market, businesses need to pay attention to meeting market requirements. Specifically, Japanese trade practices: cautious, meticulous, valuing reputation; characteristics of Japanese market demand, strict regulations, high standards, consumer habits, trends prioritizing sustainable development goals.

On the side of the Counselor, in addition to supporting trade promotion, it committed to supporting Vietnamese export enterprises and import enterprises in Japan to handle problems arising in transactions, requested the Japanese side to prioritize early customs clearance for fresh shipments, and collect information on similar competitive products from other countries that are consumed in Japan.