The free trade agreement (FTA) beginning this month between Japan and the Association of Southeast Asian Nations (ASEAN) is being hailed as a boon to Vietnamese exporters, who want to increase sales to the Japanese market by 30 per cent.

Nearly 80 per cent of tariffs – 7,260 out of 9,100 lines – were eliminated under the ASEAN-Japan Comprehensive Economic Partnership (AJCEP), down from 5-20 per cent, reported Thanh Nien News.

Agricultural products are among the big winners, according to Le Quang Lan, the deputy director general of Vietnam’s Multilateral Trade Policy Department.

The FTA took effect on the 1 December and exporters are already seeing the benefits, but importers would have to wait another two months before it was legalised in Vietnam, said Mr Lan.

“The agreement creates more advantages for some of our strongest exports, but it will also raise obstacles,” he said, referring to Japan’s strict country of origin and sanitary standards for imported goods.

“Vietnam will cooperate with Japan to set up a joint commission that will define quality and food safety and hygiene. Additionally, Japan will help Vietnam set up a centre on international sanitary standards.”

The Vietnamese Ministry of Industry and Trade said it hoped to increase exports to Japan by 30 per cent. The Ministry will begin issuing country of origin certificates for AJCEP within a few days.

Japan is the Vietnam’s third largest export market, after the US and the European Union, and was worth US$6bn last year. Exports this year are expected to hit US$7.6bn.

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