In 2004, Vietnam – Japan 2-way trade totaled $7.05 million, of which, Vietnam earned $3.79 billion from exports to Japan, 30.2% up over 2003. According to the Vietnam Trade Office in Japan, Vietnam – Japan 2-way trade last year estimatedly totaled nearly $8.2 billion, of which, Vietnam’s exports to Japan amounted $4.56 billion, up over 20% and imports from this market totaled $3.6 billion, increasing 11.7% in compared to 2004.

There are many reasons for the quick development of Vietnam – Japan trade flow in the past years. Among those, the major reason is that Vietnam – Japan trade relations are based on mutual economic benefits of the 2 countries.
Frozen shrimp has been among top products of Vietnam for exports to the Japan market. Vietnam has surpassed Indonesia to become the top supplier of frozen shrimp for Japan with an export earning of around $500 million per annum, representing 23% of the market for this product. Japanese consumers also like Vietnamese wood furniture very much so Vietnam’s export value of this product to Japan has been on the rise from $85 million in the year of 2000 to $152.3 million in 2004 and $127 million in the first 9 months of last year.
As projected, Vietnam – Japan trade value can reach as much as $10 billion this year.
Economists and policy makers of Vietnam and Japan have agreed on the following measures to boost  trade value between the 2 countries:
First, Vietnamese businesses should study the Japan market more thoroughly, improve quality as well as style and package of their products and try to reduce prices so as to be able to compete with similar products from other Southeast Asian countries.
Second, marketing activities should be done better. Vietnamese firms should participate in more trade fairs and exhibitions in Japan.
And third, the 2 Governments should cooperate tightly to abolish shortcomings and limitations in their trade policies and mechanisms.
Japan has recently offered Vietnam with GSP treatment but Vietnamese commodities are still facing a number of difficulties in penetrating into this market for non-tariff barriers, especially the strict regulations on safety and sanitary.
The 2 countries have offered each other with MFN treatment but a FTA agreement or a comprehensive economic cooperation agreement has not been signed yet. However, this problem is being solved. The first meeting of research team for the Vietnam – Japan Economic Partnership Agreement concluded successfully in Hanoi in February. In early March, a delegation from the union of economic organizations of Japan (Nippon Keidanren) led by Chairman Hiroshi Okuda paid a visit to Vietnam. Moreover, Japan and Vietnam have concluded talk on the later’s WTO accession and are preparing to sign a FTA agreement.

Source: VNECONOMY