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Vietnam - Japan Trade Turnover Period 1998-2007


foreign policy to enhance the political position of major countries in the world, especially in Asia, especially in East Asia, in which Vietnam, as we know, is a communist country with an important position and role in many aspects and has just defeated the US... so Japan cannot help but want to have relations with Vietnam. Besides, Japan and Vietnam are two countries that have had long-standing relations, especially in the field of trade and economy, which has brought great benefits to both countries, especially to Japan because it is a country poor in resources, so Japan really needs to maintain cooperative relations with Vietnam. Therefore, despite being "cold and tough" towards Vietnam, during this time, Japan continued to "maintain

"bridge" relations with Vietnam should be late

1980s

have communication , cooperation

I​​

Cultural development such as: Financial support from Japan for Vietnam to build infrastructure and purchase cultural and information equipment. These are projects such as: 24 million yen for the Ministry of Culture in 1987; 10 million yen for the maintenance and restoration of Hoi An ancient town through UNESCO in 1989; 23 million yen for the purchase of equipment to print cultural and educational programs for Vietnam Television in 1990; 18 million yen for the construction and purchase of equipment for the Friendship House.

Until Vietnam implemented the renovation process according to the open-door policy from the end of 1986 and gradually withdrew its troops from Cambodia, the exchange between the two countries was immediately resumed through the visit to Japan of Foreign Minister Nguyen Co Thach in October 1990, and the visit of Japanese Foreign Minister Nakayama to Vietnam in June 1991. At the same time, Japan also resumed humanitarian, medical, cultural and educational aid to Vietnam, but still on a small scale.

2.1.3. Period 1992 – 2007

The year 1992 marked another important milestone in Vietnam - Japan relations, opening a new period (from 1992 to present) in which bilateral relations


The relationship between Japan and Vietnam has been promoted most actively and developed fastest in the history of bilateral relations. In November 1992, the Japanese Government was the first developed country to announce the resumption of official development assistance (ODA) to Vietnam. Since then, Japan has always been Vietnam's leading economic partner. Since 1993, many important mutual visits by high-ranking leaders of the two countries have taken place. During these trips, the relationship between the two countries has gradually improved. Vietnam and Japan have granted each other most-favored-nation tariffs since 1999. Vietnam's main export items are seafood, textiles, crude oil, electric cables, wooden furniture, etc. The main import items are mechanics, iron and steel, electronics, motorbikes, textile materials, leather, etc.

“ Vietnam and Japan completed the feasibility study phase of the bilateral Economic Partnership Agreement (EPA) at the end of April 2006. Import-export activities have contributed positively to the socio-economic development of the two countries, especially Vietnam, which is in the process of promoting industrialization and modernization of the country.” 14, pp.23-25 ​​


Table 2.2: Vietnam - Japan trade turnover in the period 1998-2007

(Unit: million USD)



1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Vietnam's exports to

Japan

1481

1786

2621

2509

2438

2909

3502

4411

5232

6069

Import of

Vietnam from Japan

1469

1477

2250

2215

2509

2993

3552

4092

4700

6177

Total gold

quota

2950

3263

4871

4724

4947

5902

7054

8503

9932

12246

Maybe you are interested!

Source: General Department of Customs

Import and export activities have contributed positively to the socio-economic development of both countries, especially Vietnam, which is in the process of promoting industrialization and modernization of the country. However, compared to the needs and potential for development, trade relations between the two countries have not been fully exploited. In the total import and export turnover of Japan, up to now, Vietnamese goods still account for only a small proportion of about 1%, while the proportion of China is 13.2%, Singapore 2.9%, Malaysia 2.7%, Thailand 2.6%, Indonesia 2.3%, and the lowest is the Philippines, which has reached 1.7%, much higher than Vietnam. The structure of Vietnam's exports to Japan is still monotonous, mainly raw materials and newly processed products (over 50%). Japan has been granting Vietnam preferential tariff treatment under the GSP, however, Vietnamese goods entering the Japanese market still often encounter difficulties due to the strict non-tax inspection system, especially strict regulations on quality standards, hygiene and quarantine.


2.2. Current export and import situation of Vietnam - Japan.

2.2.1. Scale

The VJEPA Agreement together with the AJCEP Agreement has created a favorable legal framework for the development of trade relations between the two countries, opening up opportunities to promote the export of goods and labor from Vietnam to Japan. Specifically: the two-way trade turnover between Vietnam and Japan in 2013 increased to 25.26 billion USD, 2.07 times higher than in 2007 (the turnover in 2007 reached 12.2 billion USD). According to the Agreement, within 10 years from the implementation of the Agreement, Vietnam commits to liberalizing 87.66% of trade turnover and Japan commits to liberalizing 94.53% of trade turnover. In the final year of the Tax Reduction Roadmap, that is, after 16 years of implementing the Agreement, Vietnam commits to liberalizing 92.95% of trade turnover.


Table 2.3: Turnover, growth/decrease rate of Vietnam's import/export turnover to continents and by country/country group in 2013


Market

Export

Import

Import and export

Value (Billion USD)

Compared to

2012 (%)

Value (Billion USD)

Compared to

2012 (%)

Value

(Billion USD)

Compared to

2012 (%)

Asia

68.57

11.5

108.20

17.8

176.77

15.3

- ASEAN

18.47

4.4

21.64

2.7

40.10

3.5

- China

13.26

7.0

36.95

28.4

50.21

22.0

- Japan

13.65

4.5

11.61

0.1

25.26

2.4

- Korea

6.63

18.8

20.70

33.2

27.33

29.4

America

28.85

22.4

8.98

10.6

37.84

19.4

- USA

23.87

21.4

5.23

8.4

29.10

18.8

Europe

28.11

19.2

11.43

7.9

39.55

15.7

- EU (27)

24.33

19.8

9.45

7.5

33.78

16.1

Africa

2.87

16.0

1.42

37.7

4.29

22.4

Asia

Positive

3.73

9.9

2.09

-5.3

5.82

3.9

Source: General Department of Customs

Vietnam's goods exports to Japan in 2013 were 13.65 billion USD, up 4.5% compared to 2012. However, this growth rate was quite modest compared to previous years (increased by 23% in 2010, 40% in 2011 and 21% in 2012). The main groups of goods that Vietnam exported to this market were: textiles and garments reaching 2.38 billion USD, up 20.7%; crude oil: 2.09 billion USD, down 16.4%; auto parts reaching 1.77 billion USD, up 8.5%; machinery, equipment, tools and spare parts reaching 1.21 billion USD, down 1.4%...


Vietnam's import of goods from the Japanese market increased only slightly (0.1%) while in 2010 it increased by 20.7%, in 2011 it increased by 15.4% and in 2012 it increased by 11.6%. The value of imported goods from Japan in 2013 was 11.61 billion USD. Of which, the group of imported machinery, equipment, tools and spare parts was 2.96 billion USD, down 12.3%; computers, electronic products and components was 1.82 billion USD, up 7.4%; iron and steel of all kinds reached 1.64 billion USD, up 5.9%; plastic products were 625 million USD, down 3.4%...

In recent years, although there have been positive and remarkable growth steps in the results of trade between the two countries, Vietnam has not yet fully exploited the potential of one of the largest markets in the world. According to data released by the World Trade Organization (WTO) in mid-September 2013, the total export turnover of goods in 2012 from Japan to all countries and territories reached nearly 799 billion USD, while the import statistics of goods from countries and territories to Japan were 886 billion USD. Thus, the value of goods that Vietnam exports or imports from this potential market still accounts for an extremely small market share, less than 2%.

However, Japan is still an important trade market of Vietnam, accounting for up to 10% of Vietnam's total import-export turnover with all markets in the world. In 2013, the total two-way turnover between Vietnam and Japan ranked 4th among all markets that Vietnam exports and imports goods; in which, it ranked 2nd in export and 3rd in import.


Table 2.4: Proportion and ranking of import-export turnover between Vietnam and Japan in the period 2007-2013


Year

Export

Import

Market share

(%)

Ranking

Market share (%)

Ranking

2008

13.6

2

10.2

4

2009

11

2

10.7

2

2010

10.7

2

10.6

3

2011

11.1

3

9.7

3

2012

11.4

2

10.2

3

2013

10.3

2

8.8

3

Source: General Department of Customs

2.2.2. Vietnam's exports to Japan

In 2013, Vietnam's main export groups to the Japanese market included: textiles, crude oil, machinery, equipment, tools & spare parts, seafood, wood & wood products, plastic products, computers, electronic products & components... In the first month of 2014, Vietnam's goods exported to the Japanese market included the following main items: textiles, crude oil, means of transport, machinery, equipment, tools & spare parts, seafood, wood and products, footwear of all kinds... In general, most of the export groups to the Japanese market in the first month of 2014 increased. Of which, the highest turnover was textiles with 228.40 million USD, accounting for about 20 market shares, up 9.2% over the same period last year. The second-largest item in terms of turnover was vehicles and spare parts with 169.58 million USD, up 6.7% compared to January 2013. Crude oil was the third-largest item in terms of turnover.


Export turnover to Japan reached 145.80 million USD, down 29.2% compared to the same period last year. Notably, cashew nuts are the item with the highest growth rate, up 128.6% compared to the same period last year, although the export turnover only reached over 1 million USD. Compared to the same period in 2013, export turnover to the Japanese market increased by 4.2%. With the turnover achieved in the first month of 2014, Japan has become the second largest export market of Vietnam after the United States.


Source: General Department of Customs


Chart 2.1: Proportion of Vietnam's exports to Japan

in 2013

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