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Door to Japan now open for exporting farm produce
From 2010, with the Vietnam-Japan Economic Partnership Agreement (VJEPA) taking effect, more than 800 farm produce and seafood items will be able to ‘enter’ Japan with the zero percent tariff, which means big opportunities for Vietnamese agriculture.
According to the Vietnamese Commercial Affairs Division under Vietnamese Embassy in Japan, Vietnam has the opportunities to export to Japan because of the differences in crops, and especially, the different kinds of fruits and vegetables due to the different climate. In particular, Japan’s imports of bananas, pineapples and mangos have been increasing.
Le Quang Lan, Deputy Director of the Mulilateral Trade Policies Department under the Ministry of Industry and Trade said that it is not difficult to export farm produce to Japan just as long as Vietnam’s products can meet the high requirements on quality.
Lan said that the sharp reductions in tariff of farm produce can help enterprises raise competitiveness. Under VJEPA, Japan commits to cut tariffs on products which make up nearly 84 percent of the total value of farm produce exports of Vietnam.
Right after VJEPA takes effect, Japan cuts tariffs on 784 out of 2,020 tax lines on farm produce, or 36 percent of the total tax lines on farm produce, and 67.6 percent of Vietnam’s exports’ value to Japan.
Fourteen products will see the tariff cuts over a period of 3-5 years. Others will have tariffs cut gradually within 7-10 years.
As for seafood, 64 product items will enjoy tax cuts right after the agreement takes effect, or 71 percent of seafood exports value to Japan
Previously Japan tried to seek other supply sources rather than Vietnam, including Thailand, India and Indonesia.
However, according to Nguyen Anh Tuan, Deputy Director of Tho Quang Seafood Company in Da Nang City, the number of orders from Japan last week increased by 15 percent with importers keen to take advantage of the zero tariff.
Nguyen Van Kich, General Director of Cafatex in HCM City said that 60 percent of the company’s exports go to Japan, the majority of which are exported directly to 7 Eleven and Ito Yokado supermarket chains.
“We keep optimistic about the information,” Kich said, reminding that previously, Vietnam had to compete fiercely with other regional countries when bringing shrimp to Japan, because the countries had bilateral trade pacts with Japan already.
Some big seafood processors in Da Nang City said that in the first months of 2010, besides the contracts signed before, they have received additional orders from Japan importers.
According to Huynh Quang Dau, General Director of Antesco Company, the company is preparing to export four kinds of farm produce to Japan to take full advantages of the zero percent tariff stipulated by VJEPA.
VietNamNet, TBKTVN
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